Legal Issues

by Carlo Longino

Why Bother With Data Protection?

from the thanks-for-the-help dept

We've pointed out in our coverage of companies' data leaks that there's little incentive for them to spend much time or many resources on data protection, since the repercussions and costs of leaks are minimal. An interesting piece from Security Focus has taken a closer look at a case in which a person sued their student loan company after their information -- along with 550,000 other people's -- was leaked when a contractor's laptop was stolen. The court ruled in favor of the loan company, with the decision resting on whether or not the company had taken "reasonable" precautions to protect data. It's a totally subjective standard that's superficially imposed. As the article points out, the court said that the company had security policies and "safeguards" in place, but never actually examined whether or not they were effective, enforced or proper. Apparently the mere existence of some type of policy -- regardless of what that policy actually is -- is now enough for companies to eschew any liability for leaking consumers' data.

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  1. identicon
    Mike, 18 Nov 2009 @ 6:52am

    It's not really fair to judge the company's security policy based on this incident. I mean, a man had his laptop stolen. It's not like their network lacked any data protection software or policy, a man was robbed. It's apples and oranges.

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