This weeks’ readings examined several breaches of personall…

This weeks’ readings examined several breaches of personally identifiable information that occurred a few years ago.  Find an example of one that has occured and report on the following: 1.  Summarize the breach involving the loss of PII or credit card data and what data was stolen in a brief paragraph. When did it occur? How many records and what type were lost?  How quickly did the company notify the affected individuals (this might not be revealed right away – maybe look at multiple sources)? 2.  Discuss the ramifications of the breach. How much did it cost, or is it estimated to cost, the company?  If this is a publicly-traded company, check the stock prices at the time. Was their stock impacted? 3.  Discuss the company’s response to the breach in terms of the three theories discussed in the lecture (shareholder, stakeholder, and societal). Which was impacted and why?

One example of a breach involving the loss of personally identifiable information (PII) is the Equifax data breach that occurred in 2017. This breach resulted in the theft of PII, including names, social security numbers, birth dates, addresses, and in some cases, driver’s license numbers and credit card information. It is estimated that approximately 147.9 million records were lost in this incident.

The breach was discovered on July 29, 2017, and subsequently, the company publicly announced the breach on September 7, 2017. This indicates that there was a delay of more than a month between the discovery of the breach and the notification to the affected individuals. However, it is important to note that the breach might have been ongoing for a longer period before it was detected.

The ramifications of the Equifax breach were significant, both in terms of financial costs and damage to the company’s reputation. The breach was estimated to cost the company about $439 million, which included expenses related to investigation, remediation, and cybersecurity enhancements. Additionally, Equifax’s stock price experienced a significant decline following the announcement of the breach. In the days after the breach was made public, Equifax’s stock dropped by more than 30%, indicating the negative impact the breach had on investor confidence.

In terms of the company’s response to the breach, it is useful to analyze it through the lens of the three theories discussed in the lecture – shareholder theory, stakeholder theory, and societal theory. The shareholder theory suggests that a company’s primary responsibility is to maximize shareholder value. In the case of Equifax, the breach had a direct financial impact on the company, leading to a decline in stock prices and potential loss of shareholder value. Therefore, this theory highlights the negative consequences for shareholders.

On the other hand, the stakeholder theory considers the interests of all individuals or groups affected by a company’s actions. In the case of Equifax, the breach had wide-ranging impacts on different stakeholders. For the affected individuals, it resulted in the exposure of sensitive personal information, potentially leading to identity theft and financial fraud. Moreover, the breach also affected financial institutions that relied on Equifax’s data for credit risk assessments. Therefore, this theory highlights the negative consequences for various stakeholders.

Lastly, the societal theory emphasizes the broader impact of a company’s actions on society as a whole. The Equifax breach raised concerns about the vulnerability of personal data and the importance of strong cybersecurity measures. It led to increased public awareness and scrutiny of companies’ data protection practices. Consequently, this theory highlights the breach’s impact on societal trust and the subsequent need for improved data security measures.

In conclusion, the Equifax breach in 2017 involved the theft of a significant amount of PII, impacting millions of individuals. The breach had substantial financial costs and negative implications for Equifax’s reputation and stock prices. Analyzing the response to the breach through the shareholder, stakeholder, and societal theories showcases the negative consequences on these different levels.