Red Cross Blood Bank Breach Contractor Closes Down

Precedent, the company who was contracted to provide services to the Red Cross Blood Bank, has been liquidated. Although the company has managed to keep trading for well over a year following revelations that a staff member placed confidential data on a publicly-facing server, reports say their work pipeline dried up following the breach.

While this is a sad outcome it is an object lesson in the effect a breach can have on a business.

The Red Cross Blood Bank’s reaction to the breach was a great lesson in how companies can handle a serious incident. They were open and honest about the cause of the breach, with the organisation’s CEO stating clearly how the incident occurred and taking full responsibility for the breach. They also took many steps to ensure all affected customers were notified and explained what they were doing to ensure the same problem did not recur.

Precedent was not able to recover from revelations of their role in the incident.

According to reports, the company owes employees close to half a million dollars with another $51,000 owed to other parties. It’s unlikely they will all be fully paid back what they are owed.