full-disclosure - Is the Bottom Line Impacted by Security Breaches?

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Message-ID: <1127933667.58689.3.camel@localhost>
Date: Wed Sep 28 19:54:37 2005
From: frank at knobbe.us (Frank Knobbe)
Subject: Is the Bottom Line Impacted by Security
	Breaches?

On Wed, 2005-09-28 at 10:22 -0400, Kenneth F. Belva wrote:
> In the paper I ask: "If 40 million customer credit card numbers are
> exposed in a security breach at the credit card processor CardSystems, why
> do a significant number of people not cancel their Visa and/or
> Mastercard?"

Simple. The credit card numbers are exposed every time they make a
purchase as well. Now, it someone commits fraud with your name and card
number (which a convenience store clerk can do himself... no
high-profile server breach needed), then the customer is only liable for
minimal damages. The risk and liability lies with the credit card
company.

Perhaps you should ask:
"If 40 million customer social security numbers are exposed in a
security breach at the credit card processor CardSystems, why do a
significant number of people not request new social security numbers?"

After all, there is no limit on liability with fraud on those....

Regards,
Frank

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