It may be trite to say that a privacy/security breach may affect your relationship with your customers, but that sentiment is not only found in the retail and financial sectors. Universities have to be careful about the fallout of these incidents. Perhaps more so, since universities are so often the subject of these breaches.
According to the Associated Press (via Pogo Was Right), Ohio University has seen a drop in the number of donations made to the university in the wake of a number of security breaches. The fundraising office says it is too early to tell if the breaches are the real cause of the decline in donations, but the university has heard from former donors who are unhappy and prefer not to donate again. See: AP Wire 07/12/2006 OU reports drop in donations in wake of data thefts.
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