Waveduke, history is litered with very large corporations that have ignored risk and bodily injury to the consumer based on a risk assessment. You have car manufacturers that have allowed defective product into the marketplace, asbestos in product etc.
Only when the cost breaks into the pocketbook does change occur. Look at the spin coming from Target. One they made it a huge point to say that they have had no instances on their RED branded store cards, and only found some instances on one of the three types of cards they offer. Two they are working very hard to get the point across that the consumer will not be liable for any fraudulent charges. Thirdly, the CEO was talking about who and what portion the parties would be responsible for.
So what you are going to have here is the consumer being made whole and being warned about being more vigilant- checking the credit report going forward and getting it monitored free for a year and not being liable. You have not a single company bearing the full weight of this, so the full impact may not be felt until this breach becomes a distant memory.
There is no doubt the company's involved are on pins and needles here, but it's about how the consumer reacts going forward. Target said business is just about where it was prior to the announcement. They say they have fixed the problem. It is the cost of doing business.
The loss of business is what will force the issue, not the monetary losses. These losses are looked at today as a cost of doing business, a business risk. The pain threshold hasn't been breached.
And another thing to consider. In a crisis situation, I have a very difficult time believing that a company in the midst of this kind of potential PR and corporate nightmare is going to turn it's security solution over to an untested entity.
This is why the business direction under the former CEO has really placed an anchor around the company in this environment IMO.
It seemed that much smaller business opportunity was shunned for the home run, a large portfolio of many small end users along with the big wins they have could go a long way in this market today.
Much further than a binder of demos and trade shows..........
WD I speak from direct knowledge that gets acquired from a product liabillity law firm, this isn't speculation and your points are very valid, but the cost always trumps everything you write in the first paragraph and that figure is far larger than you,I or any reasonable person imagine it to be.
AI
