Should Companies Be Held Liable for Successful Attacks on Their Ais by Outside Sources?

937 Words Nov 27th, 2011 4 Pages
Should Companies be Held Liable for Successful Attacks on Their AIS by Outside Sources?
Julie Stoltz
Keller School of Management
Advanced Accounting Information Systems
AC571ON
Jeffrey Pullen
November 14, 2011

Should Companies be Held Liable for Successful Attacks on Their AIS by Outside Sources?
This is a question that has been asked many times over. There are many different opinions on the answer. My thought is that companies not only should but must be held liable. In this age of information capture the companies capturing the information must make sure their accounting information system (AIS) is constantly updated and checked for signs of attack from outside sources.
Companies have installed systems which are becoming quite
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It is a costly function of each company to keep their systems up-to-date and attack-free. However, it is my opinion that this is a cost each company must budget for. Companies need to educate management to be able to spot the areas that are susceptible to outside sources that could attack their systems. Once an attack has happened it is too late to beef up a system. Not only does the company have to report the attack and what information has been stolen, the company risks losing business because of the attack.
In a report put out by the Ponemon Institute and cited by McKendrick in an article for the Insurance Networking News, it was reported that cyber crime costs anywhere from $1 million to $52 million per year per company. Cyber crimes have become common occurrences according to the report. The cost is tied to the length of time it takes a company to respond to and resolve the attacks. It is estimated that companies spend an average of $17,696 per day per attack. The biggest issue, in my opinion, is that companies need to invest more in education of mangers and all employees to help stop the attacks before they happen (McKendrick, 2011).
While it is costly to keep an ever-changing system up it is what every company needs to do. To me, preventative costs are more reasonable and keep the company more secure. Management needs to schedule information sessions at regular intervals. Every day new technology is developed and

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