Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Network Security
See data differently
Average Rating:
Rate this article:  
Data Breaches: A New Source of Worry for CEOs
Data Breaches: A New Source of Worry for CEOs

By Bree Fowler
May 8, 2014 10:08AM

    Bookmark and Share
Experts believe many CEOs will be placing calls to their chief information officers, just to make sure their operations are as fortified as possible, in the wake of the exit of Gregg Steinhafel from Target's helm. Much like a head coach of a football or basketball team that doesn't make the playoffs, the CEO is ultimately responsible for problems.
 



Add hackers to the long list of things that give chief executive officers insomnia. Target's chief executive, Gregg Steinhafel, is the first boss of a major corporation to lose his job over a theft of customer data. His exit from the helm of America's third-largest retailer on Monday shows that -- in addition to guiding company strategy and keeping Wall Street happy with ever-growing profits -- today's chief executives are being held responsible for lapses in computer security.

Daniel Ives, an analyst for FBR Capital Markets, believes many CEOs will be placing calls to their chief information officers today, just to make sure their operations are as fortified as possible.

"Ultimately, it's the CIO and the IT managers that are really more in the weeds," Ives says. "But just like the head coach of a football or basketball team that doesn't make the playoffs, the CEO is ultimately responsible."

Steinhafel was in charge when hackers stole millions of consumer data records, including credit card number, names and addresses, from Target's computer system last holiday season.

To be sure, Target had been struggling with weak sales for several years and had run into problems with its Canadian expansion. But there's no denying the breach and its fallout were big factors in Steinhafel's departure, says Ronald Humphrey, a professor who studies leadership at Virginia Commonwealth University.

Humphrey believes that while a company's CEO is responsible for data security, the issue -- much like worker security or environmental contamination -- can sometimes get put on the backburner, because it isn't always recognized as a core part of operations.

"This is a wakeup call to CEOs that data security is something that affects their customers," Humphrey says. "If you've had your identity stolen you know it's a huge headache. I think they have to take this very seriously."

And if a breach does occur, a CEO needs to be able to show his board of directors that it didn't result from a lack of resources devoted to data security, he says.

Minneapolis-based Target Corp.'s computer systems were infiltrated by hackers who took 40 million debit and credit card numbers, along with the personal information of as many as 70 million people.

Target revealed in its fourth-quarter earnings release in February that it incurred $61 million in breach-related expenses. After the company received insurance payments, its net expenses for the hacking incident were $17 million. The company is expected to report additional charges when it releases its first-quarter results later this month. (continued...)

1  |  2  |  Next Page >

 


© 2014 Associated Press under contract with NewsEdge. All rights reserved.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Network Security
1.   Banks Hit by Android-Skirting Malware
2.   New Technology Defeats Privacy Efforts
3.   Juniper DDoS for High-IQ Networks
4.   Big DDoS Attacks Hit Record in 2014
5.   Can Google Stop Zero Day Flaws?


advertisement
Android SMS Worm on the Loose
Malware lets bad actors cash in.
Average Rating:
Banks Hit by Android-Skirting Malware
34 institutions, four European countries
Average Rating:
New Technology Defeats Privacy Efforts
Study identifies 3 browser techniques.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 
New Web Tracking Technologies Defeat Privacy Protections
Recently developed Web tracking tools are able to circumvent even the best privacy defenses, according to a new study by researchers at Princeton and the University of Leuven in Belgium.
 
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 

Enterprise Hardware Spotlight
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 

Mobile Technology Spotlight
Apple Patent for Smart Watch Comes to Light
Does a new smart watch patent issued to Apple provide a preview of the expected wearable from the tech giant? Some Apple-watchers are parsing the patent for signs of the coming product.
 
Will iPhone 6 Cannibalize Apple's Tablet Sales?
Could Apple’s iPhone 6 -- it’s so-called super-size phone due to hit store shelves this fall -- come back to haunt the smartphone maker? Some observers say yes; others say preposterous.
 
Axed Nokia X Phones Suffered from Lack of Identity
So long, Nokia X, we hardly knew you. The Nokia X phones Microsoft discontinued blend two rival operating systems, but leave out the best of each. As a result, the devices didn't become a runaway hit.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.