Midway through 2010 the recovery in the corporate governance recruitment market that was evident at the start of the year is now firmly established. As recruitment consultants we have been genuinely surprised at the strength of the recovery. The recovery is focused on the financial sector and is a result of both renewed growth in the sector and greater regulatory oversight. Investment in corporate governance has clearly become a priority.TJX - over reaction?
Submitted by Kai on Mon, 2008-08-18 14:15.
Benjamin Wright posted a comment about TJX case been an over reaction. He has also posted on this on his own blog.
First things first: let me welcome you to the blogosphere! Taking your expertise as a laywer, I probably should just shut up and not start to argue, but then again, what is the point of a discussion if we cannot share our opinions?
To you comment, I do not agree that there has been an over reaction. I think this depends on your point of view. If you consider only the known theft of money, you might be right.
However, if you consider the theft of privacy, the costs related to renewing CCs and the potential threat to the CC holder, I think the reactions so far has been anything but over reaction. I also think it is necessary to consider the time frame of the attack - this went on for quite a while, and I think it is important to consider that this was an important "wake-up" call to many shops.
You say that the Credit card issuers over reacted. I disagree. Their alternatives where:
First things first: let me welcome you to the blogosphere! Taking your expertise as a laywer, I probably should just shut up and not start to argue, but then again, what is the point of a discussion if we cannot share our opinions?
To you comment, I do not agree that there has been an over reaction. I think this depends on your point of view. If you consider only the known theft of money, you might be right.
However, if you consider the theft of privacy, the costs related to renewing CCs and the potential threat to the CC holder, I think the reactions so far has been anything but over reaction. I also think it is necessary to consider the time frame of the attack - this went on for quite a while, and I think it is important to consider that this was an important "wake-up" call to many shops.
You say that the Credit card issuers over reacted. I disagree. Their alternatives where:
- say nothing (and wait for the press to find out...ticking, expensive bomb)
- say "your credit card info is just lost, but hey, who cares? It is way too expensive to issue a new card" (and wait for customer to yell, call the press and cancel their cards manually; adding potential expensive law suits to the cost)
- do as they did - cancel all cards, issue new ones. High initial cost, but low cost & risk in the long run. Just imagine the cost of loosing the trust of the credit card user...
Monitoring
thank you for popping by and commenting! I agree that monitoring and increased attention might be a viable solution. I am not sure those measures where in place at the time of TJX, but I think those tools should be implemented for the future.
A few questions pops in my mind: There might be privacy issues re such monitoring? What exactly should be monitored? How to identify a fraudulent transaction vs. a legal one? What would be the implications for the card holder (the owner, not the crook) if the card did not function while shopping?
4th Alternative
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