This should make you think twice.

According to a study, disclosed breaches affect stock price (negatively) for up to a year. According to the study, conducted by an Australian analyst company and a US research company, disclosure of data security breaches can have a significant impact on share prices of publicly traded companies. The study looked at six companies that admitted security breaches and found that the stock prices of those companies fell an average of 5% within the first month following disclosure, and remained between 2.4 and 8.5 percent below after eight months.

These results should not be news. However, they illustrate the need for improved data security, especially when large amounts of sensitive information is stored. In light of pending legislation requiring disclosure of data breaches, companies should think hard about leaving sensitive data unprotected. Unfortunately the study does not conduct a full-scale (and more scientifically-defendable) research with control groups, etc., it suggests that companies (and their officers) may even be liable for breach of corporate duties in failing to prevent breaches and for shareholders’ loss.

Interesting read. More here.

As election day in the US draws closer, the heat of the political debate takes strange turns. In a plea deal entered on September 28, the alleged ringleader of a hacking crew called the "Internet Liberation Front" pleaded guilty to federal charges stemming from his attack on a conservative political organization’s website and theft of information, including members’ credit card numbers and addresses. The case is United States v. Hammond, No. 06-CR-0380, N.D. Ill.

The defendant, Jeremy Hammond, entered a guilty plea for illegally entering a server operated by "ProtestWarrior.com" and stealing sensitive financial and personal information from the server. Hammond is the administrator of "hackthissite.org" which labels itself as an "online movement of artists, activists, hackers and anarchists who are organizing to create new worlds." Allegedly, Hammond hacked into ProtestWarrior.com server because he aimed to "arm the liberty-loving silent majority with ammo–ammo that strikes at the intellectual solar plexus of the left."

According to the victims, Hammond intended to use the stolen credit cards to make donations to various left-wing organizations.  According to the Office of the U.S. Attorney for the Northern District of Illinois, Hammond faces a prison sentence of between 57 and 71 months with sentencing hearing scheduled for December 7th, 2006.