Should Companies Disclose Data Breaches

Should Companies Disclose Data Breaches?

Should companies disclose data breaches? What should they do once a data breach occurs in their organization? If you are curious, then keep on reading.

Should Companies Disclose Data Breaches?

It’s a question that many people in the corporate and government world are trying to figure out. There are pros and cons to disclosing a data breach.

The Pros are:

  • Disclosure of a data breach can help stop the spread of the data. If your company is not disclosing the breach, then hackers can use your data for malicious purposes. 
  • It can also protect you from legal action. If you disclose that you have been breached, then customers are less likely to sue you because they know about the breach.
  • If you disclose that there was a breach, then you might be able to help your customers clean up their information quicker. Then, it they are notified by your company, then they can protect their information quickly.

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The Cons are:

  • Not everyone wants to be notified of a breach. There is nothing worse than having to hear that there was a security breach at your bank or credit union. It makes people think less of your company and it can cause people to lose trust in you. 
  • An announcement that your organization was breached can make it easier for hackers to launch an attack on your company again. Once they know how your organization handles a breach, then they can launch another attack with better chances of success. 

So, should companies disclose the data breaches that occur in their organization? This is one question that will be debated for a long time. However, companies should disclose the data breach to their customers.

Why Companies Should Disclose Data Breaches

As said, there are pros and cons in disclosing data breaches. But the best path to take is to disclose them. Why?

First, you can get help from your customers to close the security gap that was exploited. Second, you can help reduce the risk of legal action against you. Third, you can help build customer trust in your organization again.

If a data breach occurs, it is best that you disclose it and then work on better ways to protect your customers’ data. It will be a long time before a consensus is reached on this issue, but disclosing data breaches should become the norm.

It is also important to remember that some data breaches do not need to be disclosed. For example, if your company’s database is breached and the database never makes its way outside your company, then most likely you do not have to disclose it.

To whom do you need to disclose a data breach? You need to disclose it to the customers that were affected by the breach. You may also need to contact law enforcement.


A data breach is one of the worst things that can happen to a business. However, a data breach does not have to lead to the death of your business. If you handle a data breach correctly, then you can help customers protect their information and make your organization stronger than ever.

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