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The simple mistakes by the company were the major causes of data breaches.
The pretexting attempt of the data breach impacted the business conducted by ChoicePoint negatively as the company was forced to disclose what had transpired and inform residents about their personal, informal being compromised. The federal level charged the company with many negligence counts for failing to make use of realistic information security customs. At the same time, the Federal Trade Commission also charged the firm with violation of giving credit reports to subscribers without permissible reasons to obtain them. The company saw a decline of income and increase of expenses after the incident. At the same time, there were fines imposed on the firm by FTC fines (Otto, Anton & Baumer, 2007). ChoicePoint’s paid a $10 million fine and $5 million to compensate their customers for the losses that stemmed from the information breach. Legal expenses amounting to $800,000 were incurred during the first quarter of the year 2006 related to the falsified data access. The company decided to restrict information product sale, which contained sensitive customer data.
The first governance step that ChoicePoint made was employing of a chief privacy officer who reported directly to the board to govern privacy and public accountability. The briefings are done quarterly to ensure improvement of privacy and security with another detailed oversight roles. ChoicePoint has also come up with many divisions to tackle privacy and security from various angles like corporate credentialing centre. It is a conformity and privacy division, which also undertakes internal auditing (Conger, 2009). The second step is the distinct definition of the expected behaviour and offer tools to employees to make compliance simple. ChoicePoint implemented various practices to scrutinize potentially fake customer behaviour such as investigating firms, which abruptly increase their background
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