The case study discusses the story of a massive data theft that occurred in 2013. American retailer Target was the victim, with over forty million customers being affected. The investigation argues that a Russian team of cyber criminals hacked the company’s database, exposing the information of consumer transactions to the black market. I was particularly surprised by the number of alerts Target had received prior to the data breach, as well as the fact that the perpetrators used a well-known strategy for executing the data breach.
Despite the solid cybersecurity, Target’s experts ignored the warning signs of a data breach since the company had been considered to have the best protection from cyber threats in the industry. The criminals managed to get access to the corporate network by tricking a Target’s employee into disclosing the firm’s user code and password. The breach could have been avoided had Target’s cyber experts taken the system alerts for serious.
On the one hand, the data breach struck a substantial blow to Target’s reputation. Following the incident, the company experienced the exodus of customers and the significant drop in revenue. Moreover, the company faced over a hundred lawsuits, which are still unresolved. On the other hand, data theft underscored the vulnerabilities of modern cyber protection. Furthermore, the crime led to the discussion of cybersecurity in the US Senate, suggesting a forming law framework managing data privacy.
Although Target’s customers retained their loyalty to the company, corporations should invest in information protection. Firstly, an entity that cannot ensure the privacy of its transactions is under the risk of new cyber attacks. Secondly, the lack of effective cyber security discourages banks and card issuers from working with retailers. Thirdly, a company can lose clients if it becomes known as an organization, neglecting the privacy of its consumers.