The economic theories of cost-benefit analysis and principal-agent problem explore the balance of costs and benefits in investing in cybersecurity measures and the potential misalignment of interests between companies and their customers. On the other hand, social science theories such as social trust and risk perception highlight the importance of trust in customer-company relationships and how a data breach notification letter can change customers’ perception of risk and decrease trust. By using these theories, we can gain a better understanding of the factors that contribute to data breaches and their impacts on customer loyalty and brand reputation.