Avoid Privacy Issues & Breaches
Largest Data-Related Impact: In 2019, the largest data breach in history occurred when the personal information of nearly 3 billion Yahoo users was compromised. The breach exposed usernames, email addresses, telephone numbers, encrypted passwords, and other sensitive data. This massive leak underscored the vulnerability of even large, well-established companies to cyberattacks. The incident led to Yahoo settling a class-action lawsuit for $117.5 million. (Reuters)
Most Significant Data-Related Regulatory Fines: The 2018 Facebook-Cambridge Analytica scandal led to a $5 billion fine from the Federal Trade Commission (FTC) – the largest ever imposed for privacy violations. Additionally, Facebook faced numerous lawsuits and regulatory investigations around the world. In the aftermath of the scandal, more than 150 class-action lawsuits were filed against the company. (The Guardian)
Most Goodwill Lost / Market Effect Damage Stemming from a Data Breach: The 2018 Facebook-Cambridge Analytica scandal caused significant damage to Facebook's brand and public trust. The data of around 87 million Facebook users was shared without their consent with the political consulting firm Cambridge Analytica. This misuse of data for targeted political ads resulted in widespread criticism, government inquiries, and a #DeleteFacebook campaign that encouraged users to abandon the platform. Facebook's stock price fell significantly, and the company lost over $100 billion in market value in the months following the scandal. (The Guardian)
Most Directly Costly Data Breach: The Equifax data breach in 2017 is considered one of the most expensive breaches in history. Hackers stole the sensitive information of 147 million consumers, including Social Security numbers, birth dates, addresses, and driver's license numbers. The breach cost Equifax over $1.4 billion in response, legal fees, and remediation, not including the damage to the company's reputation, and Equifax's stock price dropped significantly, and the company's market value suffered as a result.
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