Users of online services are beginning to realise the dangers associated with the safety and confidentiality of sharing their information with online service providers. This has resulted from the recent security breach at one of the world’s largest gaming providers which lead to 77 million customer records and 10 million credit cards being lost.


The occurrence has subsequently raised the question of whether online service providers are responsible for providing insurance to their customers in the case of security breaches.

Many advocates have argued that offering insurance will build user confidence and educate users about the security of using online systems.

“Although it’s virtually impossible to guarantee 100% security, it is the obligation of the service provider to do everything reasonably possible to protect the interests of their customers” stated Kareem Tawansi, CEO of software development provider, Solentive Software.

“When accepting money from a customer, a service provider is also accepting the responsibility of providing a safe experience in line with the services and features being offered.

“Online service providers can continue to protect their customer’s interests and establish a safer environment by providing insurance which will act as a safeguard for any breaches that may occur” concluded Kareem.