British Airways fined £20m over data breach
bbc.co.uk
bbc.co.uk
IAG has £23 billion of revenue last year. Over the last 9 years their total profit was £10,000 million, partly driven from slashing IT costs.
A £1 billion fine wouldn't massively hurt a company that's made ten times that in post tax profit in the last decade, but it would cause companies to take information security more seriously.
This is the equivalent of someone on an average UK salary being fined £20.
I don't think there's a single person in the realm of data protection (or information rights in general, as the ICO is the regulator for Freedom of Information laws and Environmental Information Regulations as well) who thinks Denham has done a good job.
I've never felt any regulatory body really had the technical skills to deliver anything it was meant to do - I really wonder if there are too many public policy and junior lawyers in the ICO, and not enough deep technical experts who can rapidly investigate, fact find, and recommend prosecution or sanctions.
I fear it encourages you to hide or down play an incident, if possible, when issues do happen. Instead you’d rather want to encourage transparency and some way to prove you’re following good practices and have a good track record. Maybe some incentives like car insurance companies claim to follow: better driving record, reduced insurance costs. (Not that I think car insurance is a successful/good example.)
Failure cases (like data breaches and ransomware attacks) are certainly easier to measure though, so maybe this is the best we can hope for...
Why do I get the feeling, that if £183m would not have mattered much to the bottom line of BA back then and now that it does they get a discount.
Is there any other non-business analogy where you get a discount on a fine, because you hit rough times financially?
IIRC he managed to have it later reduced because his income dropped sharply (tied to Nokia's fortunes I think), although I can't find a mention in the article.
But I thought it was more common as well, as it seems pretty fair.
Plus most of the super rich actually have quite a small personal income, their wealth is from ownership of companies. There's a high chance you earned more than Bezos last year [0].
[0] https://edition.cnn.com/2019/04/11/tech/jeff-bezos-pay/index...
Yes I think judges routinely take ability to pay into account when considering punishment in criminal cases.
Of course if BA had been more security conscious and actually checked their third party JavaScript files regularly, perhaps using https://ScriptScanner.com ( full disclosure it's my app), then they would have caught the hack a lot quicker.
This would have greatly reduced the fine and the distress caused to their customers having to cancel their cards.
Or used subresource integrity to prevent any unauthorized JS from loading. Or just not loaded third-party JS on the checkout page to begin with.
Very poor form for a company of BA's size to have third party JavaScript on the checkout page
Or not stored credit-card details in plain text.
So the more you collect, the more you stand to lose in a data breach. That should do 2 things:
1) Encourage companies to do "least data collection" (a good thing)
2) Strengthen their security if they do any sort of non-trivial data collection