Legal Ramifications


Maintaining customer provided information carries with it a significant legal responsibility. As such, customer records are a significant liability. However, they are also a significant asset. One reason to maintain customer information is because it is needed to perform a transaction with the customer in the first place, and it can assist the firm in obtaining repeat business from the customer in the future.

Customers should expect a degree of confidentiality and privacy when conducting business with both the public and private sectors. They should be assured that their sensitive information would not be released to other parties. Some of this assurance is codified in the Privacy Act of 1974.

The law extends further in reference to securing customer provided information, which will be covered in detail later in this book. Some of the codified laws that pertain specifically to the protection of customer provided data include the Government Performance and Results Act of 1993, Paperwork Reduction Act of 1995, Clinger- Cohen Act of 1996, Digital Millennium Copyright Act of 1998, U.S. Government Information Security Reform Act of 2000, Digital Signatures Act of 2000, USA Patriot Act of 2001, E-Government Act of 2002, and the Sarbanes-Oxley Act of 2002.

Security failures could ” and increasingly do ” lead to customer litigation. Inadequately protecting customer provided data from unauthorized disclosure due to security failures may result in liability findings by the courts. To prevent such findings, it is imperative that firms initiate a plan of action for implementing an information assurance strategy.




Information Technology Security. Advice from Experts
Information Technology Security. Advice from Experts
ISBN: 1591402484
EAN: N/A
Year: 2004
Pages: 113

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