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Privacy vs. Convenience
There's a fine line executives have to ride between convenience and customer data privacy and security. On one hand, customers are demanding more personalized attention and don't like needing a million passwords. On the other hand, there are many undesirables out there just waiting to compromise personal information or attack data systems. In today's issue of 1to1 Weekly, we look at the aftermath of retailer TJX's data breach, in which almost 46 million credit and debit card numbers were stolen.
Instead of scaring customers away, TJX's revenues are up from last year, and it seems to have been a ripple instead of a wave in its business. What do you think? Are organizations doing enough to protect their customers’ data? Do customers really care in the long run? And how does that affect customer trust and relationships?
This caught my attention on three levels -- I'm an avid T.J. Maxx "comber," my personal data was compromised in the recent security breach and I work with a client that has a powerful solution to help retailers manage the customer relationship in the event of a breach.
If I had to rate my experience as a "compromised consumer" on a scale of 1 to 10, I'd have to come in with a one (both for T.J. Maxx and my cardholder). This "hit the fan" months ago, and the compromise stretches over a period of years. I found out about the breach by accident during a call to my cardholder on an unrelated issue in early December 2006. I was given minimal information, no guidance and, to date, have yet to receive anything in the form of a written explanation from T.J. Maxx. If it wasn't for my love of Max Studio separates and deeply discounted handbags, my loyalty would have gone by the wayside.
You ask if organizations are doing enough to protect their consumer's data. On a business level or an individual level, statistics tell us that "the bad guys" are usually a step ahead. Some companies will wait until a major breach to really examine if they're doing enough. Others will make it a top priority. Both are at risk.
Ultimately, what makes the difference to the business is how they interact with their customers to get them through the ordeal. Companies that reach out early, "hold their consumers' hands," and extend goodwill initiatives will find the road to recovery less costly than expected because a proactive approach safeguards loyalty.
Absolutely there is not enough being done to protect customers' data.
My security has been breached 2 times already by two different companies.
NOT ACCEPTABLE!
Your question about organizations doing enough to protect their customer data is supported by Federal Legislation such as FACTA where requirements are established for all businesses to have in place a privacy and confidentiality policy and plan.
For most small companies awareness of such laws is rare, these owners are concerned with running their business and staying afloat. However, there are associates in Pre-Paid Legal who are contacting small to medium sized companies to help them become compliant, at no cost. In difference is the attitude for most, however FACTA has written into the legistation are mandatory fines and consequences, some of these could be quite devastating for the organization.
In today's world there is no question that identity theft is the growing crime of the 21st century. Every day in the news you hear about identity theft, or in articles, such as yours, mention is made about privacy and identity theft.
Companies must, for their own safety, pay attention to this situation, take reasonable steps to met the guidelines and provide their employees with some protection to help them monitor and restore their identity when it is stolen. Having a benefit of this nature offered to the employees shows management cares, but more importantly improves productivity when a professional is doing the lion's share of the restoration work. The FTC has said it takes more than 600 hours to restore a persons identity and is very expensive.