Having worked on many projects involving various levels of government regulation and compliance, and seeing all the different facets of security and what-not, I can state for a fact that a case like this will be looked at like "It was only a $50k fine? This security hardening project is costing us well over $200k and we still might have a breach that would lead to such a fine. Why are we even bothering?"
We had a project that was basically just a fuzzy match for numbers that looked like credit card or social security numbers and delete them if it found them, just in case they got into a part of the database they shouldn't (like a customers stuck their social security number into their address, and yes, it's happened before) That project cost us $22,000. It ended up being a single line of SQL that ran as part of a service every hour. $50k is laughable. Security breaches like this should nearly bankrupt a company, there is no other way they'll be taken seriously. I'm involved in 5 different projects right now, each of them billing out at over $100k each, 3 of them revolve around privacy issues and government compliance. The fines issued for such breaches aren't even in our paperwork as a concern. The cost of a breach in regards to public image however has a very specific, very large number near the top of the chart. But we're in a business where people are paying attention to such things. These fines should START in the millions because preventing them costs in the hundreds of thousands of dollars.
Source: http://rss.slashdot.org/~r/Slashdot/slashdotScience/~3/sp6kcJhCtmw/story01.htm
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