CYSE 201s

Ahmed Kargbo

After reading the sample data breach notification I have found multiple economic theories and social science theories. 

Information Asymmetry Theory: This is a principle that focuses on instances when one party has more information than the other. In the case of this data breach the platform is holding and storing all customer information while the customer sits in panic and fear. 

Reputation theory: Data breaches have a severe impact on a company’s reputation. More importantly the way a company responds to a data breach has more impact on the company’s rep. In this example the company was dictated by the law authorities to delay alerting customers, though they are following protocol this will still impact how they are perceived by consumers. 

Social Science theories include:

Social Exchange Theory: Social behavior is the result of an exchange process that will maximize benefits and minimize costs. In the case of a data breach companies must evaluate the costs and benefits of informing its customers. 

Trust Theory: Trust is the most fundamental aspect of all social interactions and relationships. A data breach can severely and negatively impact trust between a company and its customers.