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Written Assignment Unit 1

Written Assignment Unit 1 for Philosophy

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66 views5 pages

Written Assignment Unit 1

Written Assignment Unit 1 for Philosophy

Uploaded by

Adanigbo Magret
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Topic: Legal Compliance and Ethical Issues in the Equifax Data Breach

Written Assignment Unit1

University of the People

PHIL 1404-01 Ethics and Social Responsibility

Zachary Rapport (Instructor)

June 25, 2024


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1. Legal Compliance and Ethical Issues

A significant event that exposed millions of individuals' personal information was the 2017
Equifax data breach. While providing affected parties with internet privacy protection services
was a positive step, opinions on its adequacy vary. The breach raised substantial concerns
regarding legal compliance and ethics.

Potential Legal Concerns:


Data Breach Notification Laws: Equifax faced scrutiny for its delay in notifying affected
individuals, potentially violating laws that require prompt disclosure (Consumer Protection
Law).
Gramm-Leach-Bliley Act (GLBA): Unauthorized access to sensitive data may have violated this
law, which mandates financial institutions to protect consumer information (Morrison, 2006).
Insider Trading: Executives at Equifax could have breached insider trading regulations if they
sold stock after learning about the breach but before it was publicly disclosed.
Consumer Protection Laws: The adequacy of Equifax’s response, including the protection
services provided, may be legally contested under consumer protection statutes (Giddens et al.,
2017).

 Acting Legally, but Not Ethically:


Downplaying the Breach: While Equifax may have complied with legal notice obligations, its
initial statements downplayed the severity of the breach, which can be seen as unethical.
Insufficient Compensation: Offering free identity theft protection and credit monitoring might
have met legal requirements, but many argue these measures were insufficient to address the
harm caused.
Profit vs. Privacy: Prioritizing financial gain over customer privacy, such as delaying public
disclosure or implementing inadequate data security measures, is unethical.

 Acting Ethically and with Integrity:


Immediate Transparency: It would have been morally right to promptly communicate the extent
of the breach and its impact on individuals.
Putting Customer Support First: Demonstrating commitment to affected individuals by
providing comprehensive recovery services, such as robust identity theft protection and financial
compensation, would be ethical.
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Strengthening Data Security: Proactively enhancing data security measures to prevent future
breaches and demonstrating a commitment to protecting consumer information is ethically
sound.
Holding People Accountable: Promoting an ethical culture by addressing any internal
misconduct, such as potential insider trading, through appropriate investigations and penalties.

2. Impact on Equifax’s Competitive Position and Future Success

 Potential Impact on Equifax's Position Relative to Competitors:


Loss of Trust and Reputation: The data breach could lead customers to switch to competitors
perceived as more secure, damaging Equifax's reputation and potentially causing a loss of market
share.
Enhanced Regulatory Scrutiny: Equifax might face increased regulatory scrutiny, leading to
penalties and restrictions on its business operations, making it harder to compete.
Competitive Disadvantage: Competitors could capitalize on the breach to position themselves as
more reliable and secure, gaining market share at Equifax’s expense.

 Possible Effect on Equifax’s Future Success:


Financial Costs: The breach could result in significant expenses related to lawsuits, regulatory
fines, and customer remediation, straining Equifax’s finances and limiting its ability to invest in
growth.
Operational Difficulties: The breach may lead to operational challenges, including changes to
business processes and difficulties in hiring and retaining skilled staff, impacting operational
efficiency.
Long-term Brand Damage: The breach could cause lasting damage to Equifax’s reputation,
requiring years to rebuild trust with consumers and investors.

However, it is also important to consider:


Actions Taken by Equifax: Steps such as investing in security enhancements and offering credit
monitoring services to affected clients could mitigate some negative effects.
Competitive Environment: With the growing awareness of data privacy concerns, Equifax could
differentiate itself by offering more secure and private services.
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Overall Economic Conditions: The broader economic environment will also influence Equifax's
recovery and future performance.

Overall, the breach's impact on Equifax’s standing relative to competitors and future success is
uncertain, influenced by factors like economic conditions, the competitive environment, and
Equifax’s response to the breach.

3. Adequacy of Equifax’s Response and Additional Measures

Whether Equifax's provision of online privacy protection was adequate depends on individual
perspectives. Companies often respond to data breaches by offering credit monitoring and
identity theft protection services to help affected parties mitigate potential misuse of their data.

 Additional Measures Equifax Might Have Taken:


Financial Compensation: Offering financial compensation to affected individuals could have
helped cover costs for credit monitoring services or identity theft recovery.
Free Credit Freezes: Providing free credit freezes to those impacted could have prevented
further unauthorized access to credit records.
Transparency and Communication: Maintaining open communication with affected individuals
throughout the process could have helped rebuild trust and demonstrate accountability.
Enhanced Data Security: Investing in more robust security measures and safeguards could have
prevented the breach and demonstrated a commitment to protecting consumer information.
More Thorough Identity Theft Protection: Offering more comprehensive identity theft protection
services, including case management and assistance with restoring identity, could have provided
more meaningful support.
Compensation for Damages: Given the potential long-term effects of identity theft on
individuals' financial security, Equifax could have offered monetary compensation to those
affected.

In conclusion, while offering online privacy protection services was a positive step, Equifax
could have done more to address the repercussions of the breach. Measures such as improved
communication, transparency, compensation, and long-term support are crucial. This incident
underscores the importance of businesses prioritizing proactive response plans and robust
cybersecurity measures.
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Words Count: 865


References:
Byars, S. M., & Stanberry, K. (2019). Business ethics. OpenStax College and Rice University.
Retrieved from: https://opentextbc.ca/businessethicsopenstax

Morrison, K. (2006). Marx, Karl (1818–1883). In E. N. Zalta (Ed.), The Stanford Encyclopedia
of Philosophy (Spring 2022 Edition). Stanford University. Retrieved from:
https://plato.stanford.edu/ archives/spr2022/entries/marx

Smith, J. A. (2020). The Equifax Data Breach: A Case Study on Cybersecurity Challenges.
Journal of Cybersecurity. Retrieved from: https://www.csoonline.com/article/567833/equifax-
data-breach-faq-what-happened-who-was-affected-what-was-the-impact.html

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