Understanding the true cost of trust Current modes of sharing consumer data require transferring Personal Data identi昀椀ers, like an email address, between two companies to match data sets. These data-sharing arrangements rely on trust that each organization will treat Personal Data securely and with integrity. Far too often, this trust is misplaced. Consumer privacy protection is lost Whether using clear text IDs or hashed IDs, sharing data like this represents personal information disclosure and promotes the discovery of individuals. Data owners lack control over what happens to Personal Data after transferring it to another company. Once Personal Data is copied, it can be copied perpetually. Not only that, once information is copied, it can be used as a persistent identi昀椀er that can link activity back to a single person forever. Data security lapses are costly Data owners are under moral and regulatory obligation to protect consumer privacy and data entrusted to them. The risks of not doing so are both 昀椀nancially and reputationally damaging. • Data breaches – $3.86 million average cost per data breach in 20201 • Brand reputation – 9% decrease in global annual sales from a data privacy crisis event2 • Privacy regulations – €332 million GDPR 昀椀nes for information security de昀椀ciencies in 20193 Copyright © 2020 Karlsgate Inc. All rights reserved. 3