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Choice Point Case

1. Itemize the nature of the information security breach at ChoicePoint and how this adversely affected the organization. Be sure to include both tangible and intangible losses in preparing your response. [table]
Nature of Breach Affect on Organization
A pass of the authentication of customers • Data soon became available after authentication breach
• Revealed hole in ChoicePoint security system
• Trust of security standards instantly lost
Social security numbers accessed • Many individuals lost their SSN to the criminals
• More info can be accessed as a result which makes the customer or ChoicePoint more vulnerable to other crimes
Basic data accessed • Private info such as telephone numbers and addresses of customers was taken
Accessed credit reports • Personal info on credit cards were taken
Identity theft • ChoicePoint customers had their identity’s compromised and ultimately stolen
• The compromise of their identity means that they criminals could use their names and info for other purposes
• ChoicePoint was effected by the Class-action lawsuit as a result
• Were being investigated by the U.S Senate

Tangible Losses Intangible Losses
Expenses for new security Loss of Reputation
Expenses for the lawsuit Harder to bring in new customers as a result of trust as well

2. What actions were taken by both ChoicePoint and the “authorities” to address the crisis, and what is your assessment of each action taken? [table]

Action Taken Assessment
ChoicePoint contacts LAPD • A morally easy decision but a difficult decision. ChoicePoint did a good job in deciding to contact LAPD
• LAPD needed to find perpetrators
LAPD asks CP to not disclose breach • The LAPD knew that if the fact that authorities were investigating the breach got out, the responsible parties would actively try to cover their tracks

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