The sample data breach letter informs customers about the compromise of personal information and credit card information on the Glasswasherparts.com website. The theories of social science and economics can be connected by:

Theories of Economics:

According to this argument, the company party knows more about the data leak than the customers do. By educating clients and lowering ambiguity and possible mistrust, the letter attempts to balance things out. That will align with the traditional economic theory, which prioritizes little government intervention and logical decision-making. It implies that after being informed, customers will act rationally and make decisions that will safeguard their financial interests. Additionally, the breach results in negative externalities, as clients bear the financial and psychological expenses of identity theft or monitoring. The company’s power was violated, and although its reputation suffered, the consumers suffered the greatest harm, making Marxian economic theory pertinent.

Theories in Social Science:

With the increasing incidence of data breaches among enterprises and consumers, the social learning theory is being applied. Consumers may be able to demonstrate increased caution and vigilance. The company’s suggestion to monitor comments may prompt users to cultivate self-protective attitudes. Furthermore, based on the notion of the social contract, corporations are obligated to maintain public trust by protecting consumer information. Businesses’ ethical obligations to their clientele serve as an endeavor to restore trust following a breach.