Journal 11.1: Data Breach Notices

                                      Journal 11.1: Data Breach Notices

Gary Hensley

07/26/26

How does a data breach letter connect to social science and economics? Getting a notice does it affect your habits with that company or others? When a company sends out a data breach notice, it puts a spotlight on them, and depending on the info, it affects the consumer.

Companies are required to inform people affected by data breaches. Economically, this can affect the company, depending on the size and information stolen. People can lose trust in the company and switch to others. If a large enough breach makes headlines, this can also prevent new consumers. When it comes to people's information, they may lose trust and spread that mistrust to others, leaving a long lasting mistrust even after the breach has been patched. On the company side, the mistrust may affect their employees and affect the company's reputation with employment and culture. Sending out notices is important, giving consumers information about what was stolen and a chance to check whether they were affected. This gives the consumer the ability to contact their banks or change their passwords so that they can protect themselves. The aftereffect of a notice can lead a consumer to sue companies depending on the info stolen.

A data breach letter can affect the consumer and company economically, with the loss of current or future revenue, or the consumer's stolen money or identity. Socially, this can affect the way a consumer thinks about the company affected and other companies. Making a consumer less likely to give out their info to other companies.