Case Study on Information Security Breach: Impact & Avoidance

This analytical case study examines an information security breach incident at a luxury hotel, focusing on the potential impacts and avoidance strategies. The breach, involving a ransomware attack on the hotel's electronic key system, led to guest lockouts and operational disruptions. The study highlights the importance of robust security measures, including firewalls, antivirus software, data encryption, and employee training. Key takeaways for managers emphasize the need for prioritizing information security, understanding the financial and reputational risks associated with breaches, and implementing proactive measures to mitigate vulnerabilities. The case also suggests considering alternative security measures, such as physical keys, to prevent future attacks. This study provides valuable insights into the multifaceted nature of information security and the critical role of proactive risk management in protecting organizational assets and stakeholder trust.

Running head: ANALYTICAL CASE STUDY
Analytical case study
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Name of the University:
Author Note:

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Answer for Information security breach, its potential impact and its
avoidance:-
On 22nd January 2017, hackers had infiltrated the electronic key system of a luxury hotel
in Austria named Romantik Seehotel Jaegerwirt and had taken over and locked out the hotel’s
computer system. The guests were locked out in their rooms until the ransom as demanded by
hackers was paid by the hotel (Bilefsky, 2018). Thus, the above incident is a typical example of
information security breach, which is defined as an unauthorized access of information on
devices, servers and networks of a system that results to the data leakage of an organization. This
type of data leakage could compromise the data and harm the people as well as bring down the
reputation of the organization (Soomro, Shah & Ahmed, 2016). The above incident is alarming
for guests and for anybody who ever stays a hotel. This has resulted cyber security experts to
focus more on different in which physical connected internet devices could be hacked and
accessed. The above example of security breach on hotel is a distinct example of frequent and
malicious modern-day piracy and the breech has been a atypical example of ransomware attack.
The above type of security breach is an example of electronic security breach as here the
invader or intruder exploits and takes advantages of any limitations or weaknesses of the system
and gets into the system to gains access to the organizations’ sensitive data. It is notable that
these type of security breaches occurs when any intruder, outsider or employee knowingly or
unknowingly violates the data access policies and get past the organization’s security measures
(Hartono et al., 2014).

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Potential impact of security breach:
The above information security breach incident of the hotel, the resulted in the following impact
1) Hampering in guest check-in: The hotel had not being able to check-in new guests and issue
new cards for hotel doors due to encryption of range of files. The scenario of being unable to
check new guests for the period of twenty-four hours has resulted in decrease in hotel’s profit.
2) Reputational loss or damage: The hotel may loss stakeholder and customer trust as it had
failed to protect its customer or stakeholder’s data.
3) Fines: Fines may be imposed on hotel as it had failed to comply with the legislation of data
protection.
Besides these common impacts, other impacts of security breach are decline in the share
price and loss of productivity of the hotel (Thomas et al., 2013).
Action to avoid security breach:
In order to prevent and mediate the effects of security breaches, the hotel must
incorporate as well as update regularly the following components into their system which are
firewalls, antivirus software, malware, spyware, data encryption tools, password managers. In
addition, the hotel must train its employees on handling these components (Gallaugher, 2014).
On the contrary, the confirmed way of avoiding security breach is not getting hacked which can
be done by being offline and by using physical keys.
Answer for managers’ key takeaways:-
With referred to the above security breach incident of the hotel, the following may be the
takeaways for the managers from the above findings.

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 Every people of the organization must be concerned about the information security and the
need for maintenance of such security must be given top priority.
 Business organization that suffers security breach can encounter and experience suffering a
security breach can experience financial loss, loss of reputation, fines, declination of stock
prices and so on.
 Information security breach is not merely a technology problem as several personnel and
procedural factors can create and intensify the susceptibility of the organization.
 The manager must make the public to be vigilant about this sort of attack or security breach.
 In order to tackle future attacks, the electronic keys must be replaced with antiquated door
locks and real keys.

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References:-
Bilefsky, D. (2018). Hackers Use New Tactic at Austrian Hotel: Locking the Doors. Retrieved
from https://www.nytimes.com/2017/01/30/world/europe/hotel-austria-bitcoin-
ransom.html
Gallaugher, J. (2014). Information Systems: A Manager’s Guide to Harnessing Technology, v.
3.0, Version.
Hartono, E., Holsapple, C. W., Kim, K. Y., Na, K. S., & Simpson, J. T. (2014). Measuring
perceived security in B2C electronic commerce website usage: A respecification and
validation. Decision Support Systems, 62, 11-21.
Soomro, Z. A., Shah, M. H., & Ahmed, J. (2016). Information security management needs more
holistic approach: A literature review. International Journal of Information
Management, 36(2), 215-225.
Thomas, R. C., Antkiewicz, M., Florer, P., Widup, S., & Woodyard, M. (2013). How bad is it?–a
branching activity model to estimate the impact of information security breaches. A
Branching Activity Model to Estimate the Impact of Information Security Breaches
(March 11, 2013).