Chapter 10, Problem 10.16MML

Explanation of Solution

Estimation of direct cost involved in the data breach:

The company lost their 500,000 customer records. These are sensitive data that can be used for malicious activity. The hacker can misuse this kind of data for any purpose which is not acceptable at all.

• The organization has to pay a huge amount for cost of creating a mechanism for notification.
• The cost of notification can include detection of threat, escalation to appropriate experienced team, remediation by the team, and legal fees to fixing the data breach...