Skip to main content

The WiKID Blog

Viewing posts tagged Security and Economics

comments-on-pete-lindstroms-rosi-post

I'm short on time, but I did want to do a quick post about Pete Lindstrom's post on ROSI. He makes a good point about effieciencies. But there are three ways a company creates value:

appease-the-gods-of-identity-by-buying-wikid-or-at

Great article on the New York Times site about the psychology of insurance.

So when we think about passing up flight insurance, we conjure up disaster just as easily as ancient Greeks imagined a thunderbolt from Olympus, and we too figure we can avert it through the equivalent of a bull sacrifice. Intuitively, we haven’t made great strides since Homer’s day. But at least our gods take credit cards.

banking-group-sues-tjx

In an interesting development in the economics of information security and data breaches, a group of banks is suing TJX for "negligent misrepresentation". According to Massachusetts Bankers Association CEO Daniel Forte:

"Banks all across the nation re-issued debit cards as a result of the TJX data breach. Preliminary estimates of the costs vary from institution to institution, up to $25 dollars per card," MBA officials said in a statement. "This alone would run into many millions of dollars for banks throughout the country. Moreover, when fraud occurs, banks generally cover the entire fraud, replacing money in customer accounts to protect their customers."
The banks, which once owned Visa, the creator of the PCI data security standards, now recognize that there costs are an externality in that system. The tort system is a pretty good system for dealing with externalities. Unfortunately for those who like to have real data on these matters, if the case is settled out of court, we probably won't know how much it actually costs TJX. I continue to believe it will not affect their brand or sales , but it will hurt their stock price as would any expenses that do not generate revenue.

perception-of-information-security-wealth-and

Great post on Not Bad for a Cubicle about the utility of information security.

assessing-brand-damage

Tim Erlin started a discussion about brand damage. However, the data he used was really about stock prices, not "brand", which is much harder to quanitify (and it's not easy to qauntify the affects of breach on stock price).

Recent Posts

Archive

2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008

Categories

Tags

Authors

Feeds

RSS / Atom