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Epsilon Breach Could Cost More Than $100M

DATA LOSS

April 12, 2011

Writing for ITWorld, Kevin Fogarty explores the financial repercussions of Alliance Data Systems subsidiary Epsilon's data breach, stating that it could cost the company more than $100 million--mostly due to lost sales. While, so far, only one company has announced it will break ties with Epsilon, Fogarty says, "The greatest risk is the potential loss of customers." Ponemon Institute founder Larry Ponemon, CIPP, estimates breaches cost companies $214 per record in lost sales and direct costs. Alliance said in a statement last week that its top priority will be "to ensure that Epsilon's clients regain complete trust in the company's operations" while also urging customers to be wary of e-mails sent from unknown sources.
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