The sample data breach notification letter highlights the economic and social implications of a lack of cybersecurity. From an economic perspective, cost-benefit analysis plays a big role, instead of investing in a good security system the company weighs the cost of enhanced security against the risk of potential breaches. The breach also introduces negative externalities, affecting customers who must bear the consequences of compromised data. Social science theories such as Risk Society emphasize society’s need to manage and communicate risks, reflected in the company’s proactive notification. Additionally, Social Contract Theory underscores the implied obligation to protect customer data, reflected in the company’s response.