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Security Controls Essay

687 words - 3 pages

List and describe the security controls in place. Where are the weaknesses?
TXJ Companies’ security controls were very weak. The organization used the Wired Equivalent Privacy (WEP) encryption system, instead of upgrading to Wi-Fi Protected Access (WPA), apparently because beefing up security wouldn’t “provide a clear return on investment” (Laudon & Laudon, 2009, p.263). This means that what encryption the company did use was weak and easy to crack. Although it sounds as if firewalls were used to protect the main databases, the wireless networks used in TXJ’s retail stores did not have firewalls or data encryption on many of their computers, and there was no firewall separating the ...view middle of the document...

Once transactions were completed, this sensitive data needs to be removed from the company’s database. Basically, TXJ Companies needed to comply with PCI regulations.
What was the business effect of TXJ’s data loss on TXJ, consumers, and banks?
                Unfortunately, it seems TXJ received less of the impact than the banks involved. The banks that issued the credit and debit cards that are being fraudulently reproduced as a result of the TXJ (lack of) security breach are responsible for refunding the card owners for fraudulent purchases and replacing the compromised cards. This is clearly unfair and, as a result, TXJ Companies is facing lawsuits by those banks hoping to be compensated for the losses, as well as the consumers who have been affected. In addition to the inconvenience caused by stolen credit cards, hundreds of thousands of TXJ customers have also had personal information stolen that could result in identity theft. While the direct impact to TXJ Companies was not as harsh as it was on the banks and consumers, the long-term results are much more devastating....

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