[ Thanks to Dave
Wreski for this link. ]
“Many young, cash-strapped online companies mistakenly
consider the security of their e-business a luxury they cannot yet
afford, a to-do item for later down the road. This
shortsighted thinking is precisely what destroyed one very
promising e-business I know in San Francisco. Out of respect
for the privacy of this otherwise well-run company, I would like to
protect their identity. But their sad tale contains a useful lesson
for small businesses everywhere. By telling their story I hope to
help other small businesses to avoid making the same mistakes.
“This company seemed to have everything going for it. Their
merchandise was of the highest quality. Their website looked sharp.
The online order process was efficient and speedy. Their excellent
customer service was the frequent subject of news articles and
customer testimonials. In short, this e-business, it appeared, was
doing everything right.”
“When this company was on the verge of a big expansion, they
experienced a security breach. A criminal hacker broke into the
company’s web site and stole several hundred credit card numbers
and other vital customer information. … Consistent with its
reputation for good customer service, the online e-tailor offered
formal apologies as well as partial re-imbursements to all of the
affected customers. The management of the company also assured its
other customers that such a breach would never happen again. These
assurances, however appreciated by some of the customers, were not
enough to assuage the concerns of several venture capitalists that
were interested in investing in the company. … the e-business in
question is chugging along today as a minor player in a regional
market that they were once poised to dominate.