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The mystery is that this should come as a surprise to any boss. Surely it should be obvious to the dimmest executive that trust, that most valuable of economic assets, is easily destroyed and hugely expensive to restore -- and that few things are more likely to destroy trust than a company letting sensitive personal data get into the wrong hands.
The current state of affairs may have been encouraged -- though not justified -- by the lack of legal penalty (in America, but not Europe) for data leakage. Until California recently passed a law, American firms did not have to tell anyone, even the victim, when data went astray. That may change fast: lots of proposed data-security legislation is now doing the rounds in Washington, D.C. Meanwhile, the theft of information about some 40 million credit-card accounts in America, disclosed on June 17th, overshadowed a hugely important decision a day earlier by America’s Federal Trade Commission (FTC) that puts corporate America on notice that regulators will act if firms fail to provide adequate data security.
40. It can be inferred from Paragraph 5 that
[A] data leakage is more severe in Europe.
[B] FTC’s decision is essential to data security.
[C] California takes the lead in security legislation.
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