Data loss, corruption and theft

legal implication
1. Data protection act: if a business data is lost or stolen, e.g by a hacker, the information commissioner can take action against the business.
  1. computer misuse Act (CMA) - If data is stolen through hacking then if the hacker is trace, the CMA enables them to prosecute.
impact on customers
1. if the personal dtda of customers is lost, stolen or corrupted then can have a serious impact on them and the business
  1. customers may: lose confident and trust in the business and may move their custom.
  2. customer may: become victims of identity theft.
impact of emplyees
1. if an employee loses, steals or corrupts data then this can have a huge impact on them.
  1. This action an employee faces could be:
    1. a formal written warning
    2. A demotion in job role, and probably a reduction in salary.
    3. dismissal from their job
    4. a reference which stated why they lost their job - this could results in difficulty in finding another job.
  2. the employer could also increase security including:
    1. access rights to data being changed
    2. more monitoring of what employees are doing whilst accessing the data.
impact on the business
1. This can be very serious of the business.
2. under the legislation relating to this a business will have to pay compensation to the owners of the data.
3. if the business cannot pay the compensation it may have to close as it does not have any money to either pay the compensation or to carry on trading.
4. the business will also have an increase to the level of security- its system an premised. this can be expensive in terms of purchase.
5. their customers could lose confidence and take their custom else where leading to financial problem - a business needs customers to carry on trading.

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Data loss, corruption and theft

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