IT Customers, Providers Concerned About Breach Liability
DATA LOSS—U.S.March 13, 2012
Network World reports on the concerns of IT providers and customers alike over who is liable for data breaches. The report explores how data security liability has evolved from "a relatively straightforward issue"--where outsourcing customers were responsible for securing their data--to the current array of federal and state regulations that have resulted in IT service providers seeing "the price tag on unlimited liability skyrocket." The report also highlights the potential costs of a data breach, estimated to be as high as $214 per individual record. One expert suggests, "You have to do due diligence and conduct a significant risk assessment as to the real potential liability."