Eavesdropping.
Wiretapping.
Data theft.
Sure, the lost information is very valuable, but the collateral damage can be the real killer.
Investigation costs.
Stockholder suits.
Attorney's fees.
Evaporated customer "good will."
Lost competitive standing.
Public embarrassment.
...and even this unexpected PR cost...
Discounter TJX Cos. today is holding its long-anticipated "Customer Appreciation" sale, related to the massive consumer data breach that compromised as many as 100 million accounts.
The one-day promotion, advertised yesterday for the first time, gives customers 15 percent off purchases, excluding gift cards and layaways. The sale is being held at more than 2,100 TJ Maxx, Marshalls, HomeGoods, and A.J. Wright stores nationwide.
The customer appreciation sale was initially negotiated as part of a court settlement connected to the breach, which was first disclosed by TJX in January 2007. Ultimately, the sale was not included in the court agreement, but TJX - which rarely holds storewide sales - said it decided to hold the promotion anyway. (more)
Moral: Proactive security is cheaper, much much cheaper. Call us.
