Western Union 2014 Annual Report Download - page 166

2014 FORM 10-K
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Breaches of our information security policies or safeguards could adversely affect our ability to operate and could damage
our reputation, business, financial condition and results of operations.
We collect, transfer and retain consumer, business, employee and agent data as part of our business. These activities are
subject to laws and regulations in the United States and other jurisdictions, see risk factor "Current and proposed regulation
addressing consumer privacy and data use and security could increase our costs of operations, which could adversely affect
our operations, results of operations and financial condition" below. The requirements imposed by these laws and regulations,
which often differ materially among the many jurisdictions, are designed to protect the privacy of personal information and
prevent that information from being inappropriately used or disclosed. We have developed and maintain technical and operational
safeguards designed to comply with applicable legal requirements. However, despite those safeguards, it is possible that hackers,
employees acting contrary to our policies or others could improperly access our systems or the systems of our business partners
and service providers and improperly obtain or disclose data about our consumers, business customers, agents and/or employees.
Further, because some data is collected and stored by third parties, it is possible that a third party could intentionally or
inadvertently disclose personal data in violation of law. Also, in some jurisdictions we transfer data related to our employees,
business customers, consumers, agents and potential employees to third-party vendors in order to perform due diligence and for
other reasons. It is possible that a vendor could intentionally or inadvertently disclose such data. Any data breach resulting in a
compromise of consumer, business, employee or agent data could require us to notify impacted individuals, and in some cases
regulators, of a possible or actual breach, expose us to regulatory enforcement action, including fines, limit our ability to provide
services, subject us to litigation and/or damage our reputation.
Interruptions in our systems, including as a result of cyber attacks, or disruptions in our workforce may have a significant
effect on our business.
Our ability to provide reliable service largely depends on the efficient and uninterrupted operation of our computer
information systems and those of our service providers. Any significant interruptions could harm our business and reputation
and result in a loss of consumers. These systems and operations could be exposed to damage or interruption from fire, natural
disaster, power loss, telecommunications failure, terrorism, vendor failure, unauthorized entry and computer viruses or other
causes, many of which may be beyond our control or that of our service providers. Further, we have been and continue to be
the subject of cyber attacks. These attacks are primarily aimed at interrupting our business, exposing us to financial losses, or
exploiting information security vulnerabilities. Historically, none of these attacks or breaches has individually or in the aggregate
resulted in any material liability to us or any material damage to our reputation, and disruptions related to cybersecurity have
not caused any material disruption to the Company's business, although there can be no assurance that a material breach will
not occur in the future. Although we have taken steps to prevent systems disruptions, our measures may not be successful and
we may experience problems other than system disruptions. We also may experience software defects, development delays,
installation difficulties and other systems problems, which would harm our business and reputation and expose us to potential
liability which may not be fully covered by our business interruption insurance. Our data applications may not be sufficient to
address technological advances, regulatory requirements, changing market conditions or other developments. In addition, any
work stoppages or other labor actions by employees, the significant majority of which are located outside the United States,
could adversely affect our business.