Liability and Security

I have been researching and talking about private data, security, and the compromise of our private data. With that, I began to wonder about liability. Who is liable in the event that my data is compromised? The answer, in reality, is that it depends on what data was compromised and how it was compromised. So, let's look at a couple of different aspects: self-disclosure and data breaches.

Self-disclosure is just as it sounds. You have willingly provided your data to someone, whether or not it is the person you thought you were providing it to. It is simply the act of providing information, such as a password, on behalf of yourself. You might think that you are fully liable in this case, but you do have some recourse. As the msnbc.com article indicates, if you act within two days, Federal law states you are only liable for $50. After that, you become liable for $500 out to 60 days. If, after 60 days, you have not reported the potential fraud to the bank, the liability is unlimited. It's good to know you have some rights if you are duped out of information in a phishing scam. So, what happens in the event of a data breach, such as with Target and Home Depot?

Both Target and Home Depot finally revealed their data breaches. In the case of Target, they set up a site online to provide valuable information to consumers. Home Depot did not set up a specific site, but they did publish a frequently asked questions (FAQ) document to answer questions consumers may have. In any rate, the retailers both provided consumer protection due to the fact that consumer payment cards were compromised. Both retailers offered consumers one free year of fraud protection, which seems to ease the tension, but does it really?

In my opinion, providing free fraud protection is a good move to try easing my mind; however, does it really help? If I used my debit card at Target or Home Depot, what is to prevent anyone from using my information to drain my account of funds? This is where I feel that liability switches over from the retailer to the consumer. The retailers are providing you protection because of their mistake out of good faith. In return, it is important for we consumers to take action and contact our banks as soon as we are notified of the breach. This does not mean that your account will definitely be affected; but, keeping a proactive mindset will keep you above the game. In the end, you can be mad at the retailers for losing your information all you want. However, the best thing to do is accept their offer and take the proper actions to protect yourself. At some point, the liability falls on you.

Referenced Sites

Data breach FAQ. (n.d.). Retrieved September 22, 2014, from https://corporate.target.com/about/shopping-experience/payment-card-issue-FAQ

FAQs. (2014, January 1). Retrieved September 22, 2014, from https://corporate.homedepot.com/MediaCenter/Documents/FAQs.pdf

Sullivan, B. (2005, August 12). Know Your Rights on Bank Account Fraud. Retrieved September 21, 2014, from http://www.nbcnews.com/id/8915217/ns/technology_and_science-security/t/know-your-rights-bank-account-fraud