Consumers can now expect the same level of security and privacy in the digital realm as they do in the physical.
Earlier this week, a U.S. appellate court granted the Federal Trade Commission (FTC) authority to regulate corporate cybersecurity. While this isn’t the first time the U.S. government has stepped in to mend the issues overlapping several industries, this is significant progress.
The FTC can now take action if the agency claims a corporation lacks “due diligence” in protecting the digital security of Americans. The standard of care will lean on best practices in place for that industry at the time. Gone are the days when companies can simply adopt security measures they choose to protect the privacy of their customers.A corporate brand is fundamental to the tangible value of that organization. Reputational risk for failing to protect a brand from cyber attacks is dramatic, even more so with the new FTC polices which can instate additional financial punitive measures. Now more than ever, not factoring reputational risk of brand protection through adequate investment in cybersecurity is a deeply flawed business practice.