When there are potential data breaches, everything gets chaotic. Management and other key team members are scurrying around to find out what happened and why. They questi8on each other as to what caused the data breach, how do we fix it, who is responsible, and do we notify our customers, investors, and shareholders. At Flayton’s, there has been a possible data breach. Their main concern tramples on what is their obligation to their customers to protect their private data. Next, they want to know how to notify their customers of the potential security breach. Then, they want to know if Flayton Electronics’ brand has been damaged by the security breach. Finally, Flayton needs to put in place procedures to prevent future security breaches.
Evaluate the obligation Flayton Electronics has to its customers to protect their private data.

Flayton Electronics must do everything in their power to protect their customers’ private data. Flayton had implemented a PCI system; however, the system was only running at 75% when it should have been at 100%. There was also a problem with their firewall. Sergei stated that they had to keep turning the system on and off because of glitches. The American Heritage Dictionary (2012, No.2) states a firewall as, “Anny of a number of security schemes that prevent unauthorized users from gaining access to a computer network or that monitor transfers of information to and from the network.” In order for a PCI system to run effectively and efficiently, a firewall must be installed and maintained. In Flayton’s case, the firewall was implemented but not properly maintained causing the PCI system to be inadequate. Therefore, Flayton’s could not completely protect the