Epsilon, whose customers include Citibank, JP Morgan Chase, the Kroger supermarket chain, Visa, Kraft, and Marriott International, and others, acknowledged the security breach incident in a brief statement Friday, April 1st.   “On March 30th, an incident was detected where a subset of Epsilon clients’ customer data were exposed by an unauthorized entry into Epsilon’s email system,” Epsilon said. “The information that was obtained was limited to email addresses and/or customer names only.”

Epsilon sent 6.5 billion e-mail marketing messages in 2009, but the company also runs loyalty programs for Citi and Chase credit card users, and the kind of information stored in its databases could be extremely valuable to criminals looking to steal banking information in phishing attacks.

While data breaches, such as above, continue to be a challenge to information security specialists – especially in enterprise organizations – our staff of writers remains vigilant on such occurrences in order to keep the potential of this critical threat in the news and to the attention of even small and mid-sized entities.

Latest research indicates that the average cost of a corporate data breach is now $ 7.2 million dollars.  In addition, the cost of a data breach went up to $7.2 million last year up from $6.8 million in 2009 with the average cost per compromised record in 2010 reaching $214, up 5% from 2009.

Our staff recommends the following postings on the NetworkWorld website for additional readings on this key privacy and information security risk issue.

Click here to read an article written by Ellen Messmer, which presents more facts and valuable links to more about the most recent Ponemon Institute’s study regarding privacy rights and information data breach.

Click here to view an article by Michael Cooney, entitled, “20 hot IT security issues facing organizations in 2011” and posted on the NetworkWorld website.

Click here to review a Data Breach Risk Calculator, which is offered by a joint co-operative between the Symantec Group and the Ponemon Institute.

If applicable, and if this breach affects any direct relationship to your company, please pass this information along to your information security and business continuity risk management team members in your organization ASAP.

As always, we welcome any comments or additional input or updates to this event that can be shared with our readership. 

Thank you.

Photo courtesy of blog.alertsec.com

Pin It on Pinterest