Of late data breach, has become so common that companies are hitting a brick wall in trying to understand how to stop them. Recently, Yahoo admitted that more than 500 million or a billion of its user’s confidential information has been leaked and that this breach happened in the year 2014. This could well be the largest data breaches in the history. The company now has lost its face with the public as well as federal regulators. They are not subjected to a class action suit for negligence.
A quick search will tell what kind of measures the company can do to eliminate the risk of data breach. Each company has their server and information security policies that are intended to help the company. However, none of these systems are perfect and hackers understand these loopholes perfectly to manipulate them and steal information. Here are some tips for you to remember when you think of data security.
One of the most important factors in data security is that the Federal Trade Commission Act is the general consumer protection that is aimed at preventing unfair and deceptive practices. FTC used its authority to enforce that businesses should take efforts for protecting any personal information.
The securities and exchange commission has the authority to bring enforcement actions under certain conditions. They are responsible for checking whether the company made a serious effort to protect information, how the data was breached, and how much harm has done because of the data breach. If the SEC finds out that the company has failed in any of this, they are eligible for negligence and eliminates any chance of having a way back.
If the companies could understand each of these clauses, they can make efforts to protect the data better.