On January 20th, 2009 the Presidential Inauguration was taking place in Washington DC and was being watch by most Americans. At this same time Heartland Payment Systems was quietly releasing a statement that the company's systems had been hacked, exposing information of 100 million credit card users and more than 250,00 businesses.
The thieves introduced the Heartland malware in may 2008, and Heartland didn't notice until late fall 2008. Data sercurity analysts believe that, including legal costs, it could be as much as half a billion dollars in losses(twice as big as tjx). Robert Baldwin Jr., President and CFO of Heartland, plots out the next steps, "notify each victim whose data were stolen to comply with data-loss disclosure laws in more than 30 states." 44 states have data-loss disclosure laws and federal legislation is pending. Heartland is doing the bare minimum by not notifying every customer.
Article Here
So we see Heartland showed very poor ethical decisions with this data breach. Heartland shows a bare minimum effort to contact its customers. On top of that, Heartland set out a release on Inauguration day in the interest of transparency.
The Hackers, Alberto Gonzales and two russian co-conspirators, were later arrested for hacking Heartland and many other companies such as TJX.
ps - identity theft was brought up in the chapter so its great to bring back this classic commercial.
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