Can You Claim Compensation For The Damage Caused By A Cyber Security Breach?

Cyber security breaches can be incredibly damaging. They can result in the loss or theft of sensitive data, financial losses, and damage to your reputation. The good news is that, in some cases, you may be able to claim compensation for the harm caused by a cyber security breach.

In this guide, we will explore the process of claiming compensation for the damage caused by a cyber security breach. We will discuss the different types of cyber security breaches, the legal framework for cyber security breaches in the UK, and the types of compensation that may be available to you.

Current legislation, such as the GDPR and the Data Protection Act, has established strict requirements for organisations that collect and store personal data. These regulations make it clear that organisations must take appropriate measures to protect personal data, and they can face significant penalties if they fail to do so.

cyber security breachIf you have been affected by a cyber security breach, it is important to understand your rights and the options available to you. This guide will provide you with the information you need to make informed decisions about whether to pursue a claim for compensation.

Remember, cyber security breaches can have serious consequences, but you do not have to face them alone. We are here to help you understand your options and guide you through the process of claiming compensation. Get in touch to find out if you could claim, or have your questions answered by an expert advisor.

What Is A Cyber Security Breach?

Understanding cybersecurity breaches is essential when it comes to making a claim for compensation. Let’s begin by defining what a cybersecurity breach is according to the Information Commissioner’s Office (ICO).

A cybersecurity breach is a type of security incident that involves the unauthorised access, disclosure, alteration, or destruction of personal data. This can include data that is stored electronically or in hard copy format.

It is important to note that not all cybersecurity breaches will lead to claims for compensation. To be eligible to make a claim, you must be able to demonstrate that the breach has caused you harm or damage.

There are different types of cybersecurity breaches, including phishing attacks, ransomware attacks, and denial of service attacks. In recent years, there have been several high-profile breaches in the UK, including the British Airways breach, the TalkTalk breach, and the Equifax breach.

The consequences of a cybersecurity breach can be significant and far-reaching. For individuals, these consequences can include financial losses, identity theft, and reputational damage. Non-financial impacts can also include stress, anxiety, and emotional distress.

Current legislation, such as the GDPR and the Data Protection Act, requires organisations to take appropriate measures to protect personal data from breaches. If an organisation fails to do so, they can face significant penalties, including fines and compensation claims.

In the next section, we will explore the legal framework for cybersecurity breaches in the UK and your rights as an individual affected by a breach.

What Is The Legal Framework That Protects Personal Data?

Understanding the legal framework for cybersecurity breaches in the UK is crucial when it comes to making a claim for compensation. Current legislation, such as the General Data Protection Regulation (GDPR) and the Data Protection Act, sets out strict requirements for organisations that collect and store personal data.

The Information Commissioner’s Office (ICO) is responsible for enforcing these regulations and dealing with cybersecurity breaches. If an organisation suffers a breach, they are required to report it to the ICO within 72 hours. The ICO will then investigate the breach and determine whether the organisation has complied with their legal obligations.

Individuals affected by a cybersecurity breach have certain rights under the GDPR and the Data Protection Act. These rights include the right to be informed about the breach, the right to access any personal data that has been compromised, and the right to have any inaccurate data corrected.

Organisations that suffer a cybersecurity breach have a responsibility to take appropriate measures to protect personal data and to report any breaches to the ICO. If an organisation fails to do so, they can face significant penalties, including fines and compensation claims.

If you have been affected by a cybersecurity breach, it is important to understand your rights and to seek expert advice. We can help you navigate the legal framework and guide you through the process of making a claim for compensation. Contact us today to find out how we can help you.

Factors That Affect Compensation Claims

If you are considering making a compensation claim for a cybersecurity breach, it is important to understand the factors that can impact the success of your claim.

One key factor is whether the breach has caused you harm or damage. This can include financial losses, identity theft, and emotional distress. The severity of the harm or damage will be a key factor in determining the amount of compensation that you may be entitled to.

Another important factor is the strength of the evidence that you have to support your claim. This can include documentation such as emails, bank statements, and credit reports. It is also important to keep a record of any communication that you have had with the organisation responsible for the breach.

Legal professionals can play a crucial role in pursuing a compensation claim for a cybersecurity breach. A data breach solicitor can help you to gather and present evidence to support your claim, negotiate with the other side, and represent you in court if necessary.

How Long Do I Have To Claim For A Cyber Security Breach?

It is important to note that there are time limits for making a compensation claim for a cybersecurity breach. In the UK, the time limit for making a claim is usually six years from the date of the breach. However, in some cases, such as those involving personal injury or fraud, the time limit may be shorter. It is important to seek legal advice as soon as possible after a breach to ensure that you do not miss any deadlines.

Working Out Compensation Payouts For A Cyber Security Data Breach

If you have sufficient evidence to support your data breach claim, you may wonder about the compensation you could receive. The compensation amount for a cybersecurity data breach claim varies significantly from case to case, depending on the damages caused by the breach.

Therefore, it is advisable to approach each claim on a case-by-case basis. When filing a data breach claim, you may be eligible to claim both material and non-material damages. Material damages typically include the loss of funds caused directly by the breach, while non-material damages may be claimed for psychological harm suffered due to the breach.

To provide insight into potential compensation amounts for successful data breach claims, we have included some examples below. The list outlines different brackets for psychological injuries that may be compensated as non-material damages under a UK data breach claim. These brackets are based on the 2022 edition of the Judicial College Guidelines, which can be used to value claims in England and Wales. However, this is not legally binding.

  • Severe psychological harm – £54,830 to £115,730
  • Moderately Severe psychological harm – £19,070 to £54,830
  • Moderate psychological harm – £5,860 to £19,070
  • Less Severe psychological harm – £1,540 to £5,860

For further insight into compensation for cyber security data breach claims, please call an advisor. They could talk to you about the case and work out the level of compensation you could be eligible to claim. They could also help you to begin the claims process by connecting you with one of the data breach solicitors from our panel.

Starting A No Win No Fee Cyber Security Data Breach Claim

If you are seeking compensation for a UK GDPR data breach, engaging solicitors to assist you with your claim can be beneficial. The decision to obtain legal support is entirely up you. However, we always recommend seeking the services of a solicitor with prior experience in handling data breach claims. A No Win No Fee solicitor could be an option that does not require any upfront payment. With this type of agreement, often a Conditional Fee Agreement, you will typically only be charged a success fee if your solicitor assists you in obtaining compensation for the breach.

The success fee will be directly deducted from your data protection breach compensation and is legally limited by the Conditional Fee Agreements Order 2013. Therefore, you need not be concerned about excessive charges once your claim is settled.

You can contact our advisors at any time for further assistance or to start a claim:

Further Insight Into Cyber Security Data Breach Claims

Claiming Data Breach Compensation – Your Rights – Learn more about your data rights.

Data Breach FAQs – Common questions are answered here.

A Guide To Data Breach Compensation Law – Learn more about the law surrounding data breach claims.

National Cyber Security Centre (NCSC) – Learn more about cyber security here.

Cyber Aware – Get a cyber action plan here.

Action Fraud – Report fraud via this link.