The Chargeback System, Its Problems, and Solutions.

Case Study: The Charge-back system, its problems, and solutions.

By Adam Smith

This case study asks three questions: First how this person named Oluwatosin’s pretexting attempt at Checkpoint so effective? My reasoning is that checkpoint did not screen this man, yet instead they were intrigued by this person con and simply made the classic mistake of trusting a person because he seemed like he fit in. What they should have made him wait while the background check was being conducted. In the end if they had simply not took this person at his word they would have never had this problem. The funny part is the fact that it was one of the leading data brokers with over 19 billion public records and information on over 220 individuals.

The second: What were three business impacts of the data breach? I believe that the impact of this security breach caused the entire industry to take a real good look at their own security measurements. The fact that a con-artist from overseas could pull off such a bold and malicious break-in from such a big corporate data broker with such ease is very disturbing. People were in a state of fear when it came to information right until this day. The incident caused investors of Checkpoint to incur 20 million dollar loss in income. The loss of income came from all of the fines and penalties they had to pay. This incident obviously left investor scrambling to dump Checkpoint stock and maintain some financial stability from the incident. The incident also caused an 2 million dollar increase in expenses as a result. People who worked hard every day for a living now had to be worried about whether or not their information had been compromised. This incident did bring forth change from congress on how data warehouses stored and secured personal information.

This security breach incident brought about three significant changes as a result. The first was the FTC mandate the solutions to ChoicePoint’s risk exposure. The...