Suffering in silence with data leaks
A few years ago, a disclosure law was passed in 23 US states which were supposed to force corporations to reveal any data theft or loss incidents to consumers. Unfortunately, it appears that a lot of merchants "forget" to notify their clients when their personal information is stolen and these people only learn about the incident when a disastrous situation arise. Most existing laws allow merchants plenty of wiggle room when deciding whether to tell customers about such breaches or not.
"Only about 10 percent of the merchants do the right thing and notify customers when there is a compromise," Clements said. "Most want to sweep the hack under the rug. Their motivation is clear; they don't want to lose their customers' trust."