A flurry of large companies, including Apple Inc., The New York Times and Bank of America Corp., have recently become the victims of data breaches – proving that companies of any size are vulnerable.
Attorneys fluent in data security issues, including Fox's Scott Vernick, say handling a data breach well is just as important as implementing data security measures.
"You want to do everything you can to protect the company's reputation by being up front with regulators, consumers, employees and shareholders," said Vernick. "They want to hear that the company is taking the appropriate and necessary steps to protect their interests, and they don't want to hear about it a month and a half after it happened."
"The criticism that we hear all the time, whether from the public or the FTC or state attorneys general, is that companies weren't forthcoming soon enough," Vernick said.
"Transparency is important, but it needs to be a managed and thoughtful transparency, which means that companies include phrases like, 'Our investigation is still ongoing,' or, 'The facts are still coming in,'" Vernick noted.
Originally published on Law 360
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