New data privacy laws in 18 states, including New York, requiring that companies notify customers if their personal information has been compromised, have already begun negatively impacting corporate bottom lines.
A survey just released by privacy think tank Ponemon Institute, and sponsored by White & Case, indicates that 19 percent of Americans so notified have terminated or plan to terminate their relationship with the company where the security breach occurred. 1 Another 40 percent say that they are considering whether to take their business elsewhere as a result of the breach, and a whopping 58 percent say that the incident has decreased their trust and confidence in the company.
