Information Security and Liability

Claire Wilkinson, March 2006

A wide range of electronic systems are in use today that store data and information of a sensitive nature. Businesses of every shape and size increasingly rely on the Internet to sell their products, to service their customers, and to run their internal operations. At the same time, digital devices such as cell phones, MP3 players, PDAs and laptops have become the essential accessories of modern-day living. These devices interface with the Internet in ever-evolving ways, increasing the ease and speed with which information can be transmitted, downloaded and stored.

As businesses increasingly depend on electronic data and computer networks to conduct their daily operations, growing pools of personal and financial information are being transferred and stored online. This can leave corporations exposed to potentially enormous liability, if and when a breach in data security occurs.

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