28 Sep Can your business be sued for a cyber security breach?
Did you know that your business could face a lawsuit if it were the victim of a cyber security attack? Here are a couple of cases where you could be held legally liable:
- Allowing (through lax security or procedures) unauthorized access to electronic and non-electronic confidential client/customer information.
- Failing to notify any parties affected by a data security breach.
If you are found to be negligent and that causes financial harm or lost business opportunities to a customer, you could be required to pay restitution.
The data breach does not have to be intentional on your part for you to be liable. It could be the result of your firm being hacked. Your company could be legally responsible for damage caused by a cyber security breach if you did not install the required anti-malware software, did not get the required software patches or you did not encrypt your customers’ data.
Other ways cyber security breaches can occur are through employee misconduct or through accidentally disposing of a computer that contains sensitive customer information. Data breaches put customers at risk by exposing personal financial records, health information, trade secrets and intellectual property.
According to data from the Pew Research Center, data breaches are a growing concern among Americans. Nearly 41 percent of Americans have encountered fraudulent credit card charges; 35 percent have had sensitive information compromised; 16 percent have had their emails hacked; 13 percent have had their social media accounts taken over; 14 percent have had loans/lines of credit opened in their name and 6 percent have had someone file a fraudulent tax return using their Social Security numbers.
Cyber security breaches are serious concerns and something you should be protected against. If you are concerned about the legal issues concerning a cyber security breach, we are here to discuss it with you. We are a boutique law firm serving financial and lending institutions. We’re here to help with all your legal needs!