Data breaches are becoming increasingly common in today’s digital age, with cybercriminals constantly finding new ways to access personal information. When a data breach occurs, the consequences can be devastating, not just in terms of the breach of privacy, but also in financial terms. Data breaches can lead to material loss, and if you have been affected by one, you may be eligible to claim data breach compensation for financial loss.
There are many ways in which a data breach can cause financial loss. For example, if your bank details or credit card information have been compromised, cybercriminals could use this information to make unauthorised transactions or open accounts in your name, resulting in financial loss. Moreover, you could incur expenses associated with securing your accounts or dealing with fraudulent activities.
If you have suffered financial loss due to a data breach, it is important to know that you may be entitled to compensation. Our guide on financial loss data breach claims will provide you with a detailed overview of this subject, explaining whether you could be eligible to claim, how much you could receive, what evidence you would need, and how to get help from a solicitor with your claim.
If you have been affected by a data breach, do not hesitate to get in touch with us to find out more about your rights and how we can help you claim the compensation you deserve.
Legal Rights – Who Could Claim Data Breach Compensation For Financial Loss?
The Data Protection Act 2018 (DPA2018) and the UK General Data Protection Regulation (UK GDPR) provide claimants with the right to seek compensation for financial loss caused by the wrongdoing of an organisation that was legally bound to protect their data. These laws make it clear that organisations must take appropriate measures to protect the personal information of individuals, and if they fail to do so, acting wrongfully, they may be held liable for any financial loss suffered by the affected individuals.
A data breach can occur in various forms, from intentional hacking to accidental loss or theft of data. A breach can happen to any type of entity that stores personal data, such as businesses, government agencies, healthcare providers, and financial institutions. Hackers can exploit vulnerabilities in an organisation’s security systems, phishing scams can trick employees into disclosing sensitive information, and physical theft or loss of devices containing data can also lead to a data breach.
Once a data breach occurs, the personal information of individuals may be exposed, including names, addresses, financial information, and other sensitive data. The exposure of this information can result in financial loss, such as fraudulent charges on bank accounts or credit cards, unauthorised loans, identity theft, and other related expenses.
Claimants who have suffered financial loss due to a data breach may be entitled to compensation under the DPA2018 and UK GDPR. To make a claim, they must provide evidence of the breach, the financial loss suffered, and the responsibility of the organisation to protect their data. Seeking the help of a solicitor with experience in data breach compensation claims can be crucial in ensuring the claim is successful.
How Long Do I Have To Claim Data Breach Compensation For Financial Loss?
In the UK, the limitation period for making a data breach compensation claim is generally six years from the date of the breach under the Limitation Act 1980. However, it is advisable to seek legal advice as soon as possible after the breach occurs to ensure that the necessary evidence can be gathered and the claim can be made within the appropriate time frame. It is also important to note that in some cases, the limitation period may be shorter, and there may be exceptions to the limitation period in certain circumstances.
How To Spot Financial Harm From A Data Breach
Financial harm resulting from a data breach can often be difficult to spot, as cybercriminals may use the stolen information over an extended period of time. However, there are some common signs that could indicate financial loss, and individuals should be vigilant in monitoring their accounts and credit reports.
One of the first steps in spotting financial harm is to regularly check bank and credit card statements for any unauthorised transactions. If any suspicious activity is found, individuals should immediately contact their financial institution to report the fraud and have the transactions reversed. Additionally, individuals should check their credit reports regularly to ensure that there are no new accounts opened in their name without their consent.
Another sign of financial harm may be the receipt of unexpected bills, such as medical bills or loan statements, for services or products that they did not request or use. This could indicate that someone has used their stolen personal information to make these transactions.
If someone suspects that they have suffered financial harm due to a data breach, they should contact the organisation that was responsible for protecting their data and report the breach. Additionally, they may seek legal advice from a solicitor experienced in data breach compensation claims to determine if they are entitled to compensation for any losses suffered.
What Types Of Financial Loss Could I Claim Compensation For?
If you have suffered financial loss due to a data breach, you may be able to claim compensation for various types of losses that you have experienced. Some of the types of financial loss that you may be able to claim for include:
- Fraudulent charges on your bank or credit card accounts. If cybercriminals have gained access to your bank or credit card details, they may use them to make unauthorised transactions, which could result in financial loss for you.
- Identity theft. If your personal information, such as your name, address, and social security number, have been exposed in a data breach, cybercriminals may use this information to open new accounts or loans in your name, resulting in financial loss.
- Financial losses associated with restoring your identity. If you have been a victim of identity theft, you may incur expenses associated with restoring your identity, such as legal fees, credit monitoring services, and other related expenses.
The specific types of financial loss that you may be able to claim for will depend on the circumstances of your case.
What Can I Claim For Besides Material Loss?
In addition to financial loss, there are other types of damages that you may be able to claim for in a data breach compensation case, depending on the circumstances of your case. Some of these damages include:
- Non-financial losses – Data breaches can cause significant stress, anxiety, and emotional distress, which can be compensable in certain cases.
- Loss of privacy: If your personal information has been exposed or disclosed without your consent, you may be able to claim for a loss of privacy.
It is important to note that the types of damages that can be claimed for will depend on the specific circumstances of the case. It is advisable to consult with a solicitor experienced in data breach compensation claims to determine the types of damages that you may be entitled to claim for.
Getting Help With Data Breach Claims – Can No Win No Fee Solicitors Help?
Using a solicitor for a data breach compensation claim can provide several benefits, including:
- Solicitors who specialise in data breach compensation claims have the knowledge and expertise to ensure that your case is handled correctly.
- Solicitors can handle all aspects of your case, from gathering evidence to negotiating a settlement, which can save you time and ensure that your case is handled efficiently.
- Going through a data breach can be stressful and overwhelming. A solicitor can provide you with the support and guidance you need to navigate the process and get the compensation you deserve.
We can help you make No Win No Fee claims by connecting eligible claimants with experienced solicitors from our panel specialising in data breach compensation claims. This typically means that you will not have to pay anything upfront to your solicitor, and you will only pay if your case is successful.
By working with a solicitor on a No Win No Fee basis, you can pursue compensation for financial loss and other damages resulting from a data breach under a Conditional Fee Agreement without having to worry about the financial risk. A solicitor will handle all aspects of your case, from gathering evidence to negotiating a settlement, to ensure you have the best chance of success. They will only take payment for their work if your claim results in compensation.
If you believe that you have suffered financial loss or other damages due to a data breach, get in touch with us today to find out if you are eligible to make a No Win No Fee claim.