Ethics And Ethical And Unethical Practices

1453 Words6 Pages
Three Fraud Cases With the development of technology, both for ethical and unethical practices, it is a consistent battle with firms protecting their own AIS, and hackers finding the ability to hack into information to receive an advantage in committing a fraud. There are many cases in which a firm(s) were victims of the act committed by the hackers. The main three cases discussed here is: the Department of Veterans Affairs (May 2006), Sony’s PlayStation network (April 2011), and Target’s AIS hack. Liability of Fraud Loss Each firm should have should be liable from some of the costs of a security breach, if not the entire amount that was lost from the individuals that lost money through the firms’ inability to keep secure the information…show more content…
VA Response to the Case The VA in this case responded ineffectively due to not encrypting the data quickly, and stating that there was still not much means to encrypt the data. This was stated by the Tennessee Rep David Roe, “Why wouldn’t that be public? When people are trying to steal from you, we ought to let people know who is trying to steal our own veterans’ information. Why are we hiding that?” (Flatten, 2013). Additional Measures In this case, the malicious attack should have been prevented with proper security. Information should not be open for the opportunity for an attack at any cost. Proper authorization should be the first step taken for protecting the database from future attacks. The granted access to the smaller amount of individuals, while encrypting that data, should reduce the amount of confidential information from reaching the public and into the wrong hands. Sony’s Liabilities Sony’s security breach liability in their AIS is similar to the VA’s case. This is again due to failure to encrypt data that can harm individuals that provided the firm with information. The liability for this breach should also be the majority of the amount of damage caused by the breach. The estimated liability caused by Sony came out to be
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