Read the “SAMPLE DATA BREACH NOTIFICATION” and describe how two different economics theories and two different social sciences theories relate to the letter. (Week 12-1)

with No Comments
Sample-Data-Breach-Notification

An economic theory used within the data breach notification is laissez-fare theory. The theory believing that government shouldn’t interfere with the economy unless to protect an individuals inalienable rights.  With the breach resulting in customers names, addresses, and credit card information being lost, breaching their privacy governmental law enforcement was contacted to assist with incident response.

Neutralization theory can also be seen within the letter as at no point has the organization taken responsibility for the breach, they are denying their responsibility to their customers to protect information they have collected from them. Although the platform provider held the information, the responsibility to ensure its safekeeping still falls on the organization that needed the information in the first place. The organization could have made sure protections were in place prior to the breach. 

Rational choice was another economic theory identified. The writing within the notification shows that the organization passed the risk of managing user data to a third party platform provider. The organization made the choice to transfer the risk of managing customer data as I t was easier than managing the service themselves, whether it was due to not having qualified personnel, the proper department or the cost associated with the upkeep of resources needing to manage all the information.

Social exchange theory was seen within the letter as the organization saw it beneficial to notify customers of the breach. Although there may have been a requirement to do so, the organization held off on immediate notification so that they could have a better handle on the investigation which could have customers interactions with the company being more favorable having results rather than unanswered questions.

Leave a Reply