How Consumers Foot The Bill For Data Breaches

The article cites the views of John Zurawski, VP Marketing, Authentify on how data breaches affect the victim firm.

2014 might just be remembered as the year of high profile data breaches. Companies such as eBay, PF Chang's, and the University of Maryland have already been targeted and new attacks are being uncovered almost daily. Consumers are beginning to shrug off the news as a normal cost of paperless e-commerce. This is truly unfortunate because the average consumer will end up footing a portion of the bill for a data breach. This is true whether or not their personal information was compromised during the breach.

Consider the attack on Target stores during the 2013 holiday buying season, which resulted in 40 million credit card records being compromised. It's an understatement to say that the mischief-makers are getting more and more sophisticated.

Two-factor authentication services from Authentify can help protect both the consumer and retailer, or other enterprise site, in the event of a major data breach.

The following illustration by Authentify below shows the total cost of an average data breach as it trickles down to the consumer: