Summary
In early November 2014, Home Depot announced that criminals had hacked into the company’s system and made away with 56 million credit and debit card numbers. The disclosure “Officially made the incident the largest retail card breach on record” (Rosenblatt, 2014, para. 3).
On September 2, 2014, the company announced that it had suspected a security breach in its data system. However, the company reassured the clients that it had managed to contain the breach. As though stealing the credit and debit card numbers was not enough, the hackers also stole 53 million email addresses. Home Depot is doing all it can to fix the problem and restore client confidence.
Impact on security issues
The cyberattack on Home Depot left the company prone to phishing in the future. Presently, hackers hold vital information and email details for customers. Therefore, they can use this information to implore for more information from the customers (Mitchell, 2014). For instance, hackers may use the information from credit cards to send emails to unknowing clients. The incident left the customers vulnerable to subsequent cyber-attacks since the hackers had all the information they needed to execute their attacks.
The attack had a direct impact on data security in electronic commerce. Many people are concerned about the safety of their online data. Therefore, companies are trying to reinforce their data security. Presently, institutions, which use online transactions, are installing systems with enhanced safety.
For instance, Home Depot has already rolled out a payment system that guarantees advanced data encryption (Mitchell, 2014). What’s more, enterprises in e-commerce are collaborating with card companies and banks to beef up security. Credit card companies have been advised to implement microchips to make online transactions secure.
Personal opinion
A number of lessons can be learned from the Home Depot incident. First, all enterprises are susceptible to cyberattacks no matter their size (Cavusoglu, Mishra & Raghunathan, 2004). One could not imagine that a big company like Home Depot could fall prey to hackers. The incident was a wake-up call to all businesses to invest in data protection before they fall prey to cyber-attacks.
Miyazaki and Fernandez allege, “In most cases, financial information shared online is kept in more secure locations than the information given in stores” (2001, p. 30). However, this does not mean that such information is free from online fraud. Online shopping is a safe means of purchasing goods. Nevertheless, enterprises should make sure that they protect their customers prior to encouraging them to engage in online shopping.
Home Depot has not done enough to protect its customers from online fraud. A lot needs to be done to guarantee that online transactions are not prone to hacking. Some of the methods that the organization can use to protect its customers include offering several payment alternatives. A breach of credit and debit cards makes customers fear to use the cards in subsequent transactions (Miyazaki & Fernandez, 2001).
Therefore, organizations, which are involved in online transactions, need to offer numerous payment options to their customers. For instance, companies may use PayPal and Apple Pay options. Such payment modes would help to restore confidence in customers; therefore, encourage them to continue trading (Kannan, Rees & Sridhar, 2007). It is the high time that Home Depot keeps its financial data on multiple servers and uses dummy servers to shun hackers.
Reference List
Cavusoglu, H., Mishra, B., & Raghunathan, S. (2004). The effect of internet security breaches announcement on market value: capital market reactions for breached firms and internet security developers. International Journal of Electronic Commerce, 4(1), 70-104.
Kannan, K., Rees, J., & Sridhar, S. (2007). Market reactions to information security breach announcements: an empirical analysis. International Journal of Electronic Commerce, 12(1), 69-91.
Mitchell, J. (2014). Home Deport security breach may reach farther than direct customers. Web.
Miyazaki, A., & Fernandez, A. (2001). Consumer perceptions of privacy and security risks for online shopping. Journal of Consumer Affairs, 35(1), 27-44.
Rosenblatt, S. (2014). Home Depot says 53 million emails stolen. Web.