Businesses Refrain from Reporting IT Crime

One-third IT security departments of business enterprises remain quiet about cyber crimes and security violations on corporate computers, as per new research.

Infosecurity Europe's study of 285 large businesses IT security teams showed that although most companies found some kind of security crime almost every day but they would not report all of them, rather choose and select ones they considered appropriate.

Most commonly companies fear of media coverage and loss of business reputation in public if they reported the more severe instances of computer-based crime, said a well-known legal expert.

The recent case of apparel retailer TK Maxx heightened this concern. The U.S. laws had obliged the company to declare the credit card data theft of 46 million customers around the world.

Reporting such crimes to authorities affects on both sides - the end users and most certainly the press. In the case of TK Maxx the press became aware of the incident in just 24 hours of informing the breach to the cops. That risked the public relations of the firm, according to comments by Jonathan Coad of top law company Swan Turton. Onestopclick published Coad's statement on April 10, 2007.

Mark Watts, IT partner at Bristows law firm thought perhaps companies were wise not to announce about breaches early enough. IT WEEK published Watts' statement on April 10, 2007. He explained that U.S. consumers were facing 'breach fatigue' because they receive so many notifications that they find it hard to separate the important incidents. He therefore thinks companies should access a particular case for actual possibility of data compromise. If there is none, they could spare the consumers of botheration.

But when corporate victims don't report IT breaches it means the crimes largely remain unresolved, said Ollie Ross, head of research at The Corporate IT Forum. IT WEEK published Ross' statement on April 10, 2007. However, given the TK Maxx case the stakes were high, he added.

Security campaigners Getsafeonline found in a recent report that people normally felt greater fear from Internet security breach than from any kind of physical violence like a car crime or mugging.

Related article: Businesses Asked To Shoulder Security Of Online Transactions

» SPAMfighter News - 4/19/2007