Rauls Retailing has a high turnover rate among its employees. It maintains a very large distributed computer network that supports approximately 200 networked PCs. The company maintains fairly extensive databases regarding its customers. These include customer profiles, past purchasing patterns, and prices charged. Recently, the company has been having major problems with competitors. It appears that one competitor seems to be very effective at taking away Rauls’ customers. Most of the company’s customers have been visited by this competitor, and identical products have been offered at lower prices in every case.

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What is the possible security problem? What can be done about it?