Saturday, August 10, 2019

Flayton Electronics Case Study Example | Topics and Well Written Essays - 750 words

Flayton Electronics - Case Study Example While some hackers will do it for fun and for exploration, others are malicious people who will defraud companies of substantial amounts of money. This paper examines crucial steps that a Flatyton Electronics Company can take after their data is stolen, how it can communicate with its customers, and ways to curb this in future. Flayton has an obligation to protect its customer’s private data. For the last 25 years, Flayton has build a big business from trust customers has on the company. Regular customers pay their bills using credit cards, master cards and other bankcards. According to federal trade commission website (FTC) it is impossible to be in business and not hold personal identifying information. Such information includes credit card numbers, names and addresses, business partners, and other account numbers (â€Å"FTC,† N.d). There is an implied obligation of confidentiality to the stores and their staff. It is the duty of the management of a store to make sure that customer’s information does not leak to fraudulent third parties. Therefore, Flayton Electronics’ management had an obligation to make sure that it employs credible employees who will keep customers information confidential. Additionally, it is an obligation of Flayton to make sure that its firewall remains working throughout to avoid hacking incidences. For this particular incidence, Flayton firewall remained down for sometime, which may have contributed to illegal access of customers personal data. All companies dealing with telephone card payments need to comply with all Payment card Industry (PCI) standards. PCI Security Council is not responsible for enforcing compliance but it is upon the company to comply (â€Å"PCI Security Standards† 2011). Customers dealing with Flayton Electronics assume that this company is compliant with PCI standards and thus their personal data is secure. Unfortunately, Flayton Company was only 75% PCI compliant. The communication strategy adopted by the CEO of Flatyton Electronics to inform their customers of the potential security breach will determine its business in the next few years. Brett Flayton needs to be timely in informing the public. Although the compan y has little knowledge of what transpired with the customers credit cards, it is wise to be the first to inform the public. Timely communication will make the company win the public’s trust. The longer Brett stays without informing the customers, the higher the risks of disclosure from another party where he will need to explain reasons for breaching its customers trust. Brett needs to explain to the security agents the reason for going public. He has the right to refuse to remain silent to enhance chances of catching the thieves as the law enforcing officers’ advice. However, the mode of communication adopted should be confidential to give a chance to the authorities to enforce laws on the victims. Brett can hold a meeting with the major customers, explain the latest discovery it has made on the security of cards, and detail any information in their hands now. Any defrauded customers will protect themselves from further frauds as a result. Consequently, it will have t o keep the customers informed on its latest discoveries. Additionally, Brett will have to convince the customers that the current measures the company has adopted will see to it that such an occurrence will not recur in future. Information on when it is safe to start using the cards again will be necessary. Flayton Electronics’ brand was damaged by the security breach. The major core value of this company is to win the trust of customers through effective products and efficient services. Brett, the CEO

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