Just the word data security breach makes my blood run cold. What about you? If it doesn’t, then it should. I was reading this very interesting post on Slashdot about a *possible* breach. The first thought that came into my head was “Boy, it is kinda tough to say exactly when”

Why should it be? For many of us small businesses, we strive not to be like the bigger businesses. Our first inclination is – tell the customers right away … true? But telling customers right away does have its consequences too. What if the problem is not really a breach? Maybe you noticed something funny but haven’t confirmed it is an actual hack and you tell customers something has happened. Wouldn’t that erode their confidence in you?

Yes, not telling them may cost you more but so does crying wolf. I don’t have any answers to this although personally, I would not let it get too far before informing customers. What do you think? When would you inform your customers of a possible security breach?