Analyzing the Analysts
In Things Are Looking Up For TJX, or, Javelin Research – Credibility Issues? [link to http://riskmanagementinsight.com/riskanalysis/?p=159 no longer works], Alex takes a look at research released by Javelin, and compares it to some SEC filings. Javelin is making the argument that companies that suffer massive breaches will lose market share. As do these folks at Response Source: “LATEST NATIONAL RESEARCH REVEALS LACK OF CONSUMER TRUST IN THE SECURITY OF PERSONAL DATA IN THE UK.”
The trouble is, consumer behavior seems un-impacted.
Also in the looking at Javelin department, Chris Hoofnagle writes about “Making the Known Unknowns Known,” [link to http://chrishoofnagle.com/blog/?p=696 no longer works] which gets some additional thoughts from Dan Solove, in “Requiring Banks to Disclose Identity Theft Statistics” [link to http://www.concurringopinions.com/archives/2007/03/requiring_banks.html#more no longer works]. It’s a very good and reasonably short article that makes the argument that the fraudsters have figured out weaknesses in the US banking system that aren’t getting analyzed in a systemic way.
If this data thing were organized, it would be like a movement.
Re: “The trouble is, consumer behavior seems un-impacted.”
consumers are impacted, but when the common consumer’s mindset is only placed in two camps of choice ( to buy or not to buy) coupled with not being able to put an actual price on their own identity large companies will continue to rape, pillage and say ‘oh this is an acceptable risk’. If we could allow consumers to put a price on their identity things may change. If we can’t empower the consumer to demand better service nothing will change and the business units will always have some lame ass excuse on how they had taken x, y, z precautions and that is the price of doing global business.
Bottom line – If consumers can have more than two choices they won’t be victimized by the people they entrust (or by their perspectives of a or b) and they will feel empowered to think about a third area of choice.
Sadly, I think most people just don’t know there are more than two choices available for them.