What Is The Average Data Breach Compensation Payout?

Data breaches can have devastating consequences, both for individuals and for organisations. Not only can sensitive personal information be compromised, but the fallout can be costly in terms of time, money, and reputation. If you have been the victim of a data breach, you may be wondering what kind of data breach compensation you can expect to receive. While it’s natural to want to know what the average data breach compensation payout is, this information alone may not be very useful in determining what you are entitled to.

Many factors can affect the amount of compensation awarded in a data breach case, including the severity of the breach, the type of data involved, and the extent of the harm suffered. Additionally, compensation payouts can vary widely from case to case, so relying on averages may not provide an accurate picture of what you can expect.

Data Breach compensation payoutIf you are considering making a data breach compensation claim, it’s essential to understand your rights and options. In this guide, we will provide helpful information on what kind of compensation could be appropriate for different types of data breach claims, whether you could be eligible, and how a solicitor could help you pursue your claim. With the right guidance and support, you can take steps to recover from the harm caused by a data breach and hold those responsible accountable.

If you’ve been the victim of a data breach, don’t wait to seek the compensation you deserve. Read on to learn more and take the first steps towards securing your rights. Or, get in touch to have an advisor look over your claim and advise you.

Who Could Be Eligible To Claim An Average Compensation Payout For A Data Breach?

Suppose your personal information has been compromised in a data breach. In that case, you may be eligible to claim compensation under the Data Protection Act (DPA2018). However, eligibility criteria vary depending on the specific circumstances of the breach and the harm suffered.

Data breaches can occur in a wide range of organisations, from healthcare providers and financial institutions to retailers and social media platforms. Some of the most common types of breaches include phishing attacks, malware infections, insider threats, and system vulnerabilities. Regardless of the type of breach, organisations have a legal duty to protect personal data and can be held liable for harm caused by their wrongful acts in failing to do so.

To be eligible to claim compensation for a data breach, you must be able to show that the breach resulted in actual harm, such as financial loss, identity theft, emotional distress, or reputational damage. In addition, you must be able to demonstrate that the breach was caused by the organisation’s wrongful negligence or breach of data protection laws.

How Long Could I Have To Claim The Average Data Breach Compensation Payout?

The length of time you have to claim compensation for a data breach can vary depending on several factors.

In the UK, for example, the limitation period for making a claim for compensation under the Limitation Act 1980 is generally six years from the date of the breach. However, some claims could have shorter limitation periods, particularly if they involve public bodies.

It’s important to act quickly if you believe that your personal information has been compromised in a data breach. The longer you wait to make a claim, the harder it may be to gather evidence and establish a strong case for compensation. Additionally, waiting too long could result in your claim being time-barred, meaning that you may not be able to pursue compensation at all.

How Could A Data Breach Happen?

Data breaches can happen due to wrongful action by a data controller in a variety of ways. Data controllers are responsible for ensuring that personal data is processed lawfully, fairly, and transparently. When they fail to do so, it can result in a breach of data protection laws and harm to individuals.

Some of the most common ways in which data breaches happen due to wrongful action by a data controller include:

  1. Failure to implement appropriate security measures – Data controllers have a legal duty to implement appropriate technical and organisational measures to protect personal data from unauthorised access, alteration, disclosure, or destruction. If they fail to do so, it can result in a data breach.
  2. Human error – Data breaches can also happen due to human error, such as sending an email to the wrong recipient or failing to encrypt sensitive data.
  3. Malicious insiders – Sometimes data breaches are caused by employees or other insiders who deliberately access, steal, or misuse personal data for their own purposes.
  4. Cyberattacks – Data controllers may also be held liable for data breaches resulting from cyberattacks, such as phishing or malware attacks, if they fail to implement appropriate security measures to prevent such attacks.

In any of these cases, the data controller may be held liable for any harm caused to individuals as a result of the data breach if they’ve acted wrongfully. This may include compensation for financial losses, emotional distress, or other types of harm.

What Damages Make Up The Average Data Breach Compensation Payout?

Several factors can impact the average payout for a data breach compensation claim, including the severity of the breach, the types of damages suffered, and the evidence presented to support the claim.

The severity of the breach is a significant factor in determining the amount of compensation awarded. For example, a data breach that involves sensitive personal information, such as financial or medical records, that causes more harm may result in a higher payout than a breach that involves less sensitive data, such as email addresses or phone numbers that causes a low level of distress.

The types of damages suffered by the individuals affected by the breach are also taken into account when calculating compensation payouts. These damages may include financial losses, such as the cost of credit monitoring or identity theft protection, as well as non-financial damages, such as emotional distress, loss of privacy, or damage to reputation.

Evidence presented to support the claim is another critical factor in determining the average payout for a data breach compensation claim. The more evidence that can be provided to demonstrate the harm caused by the breach, the higher the likelihood of receiving a payout. This evidence may include documentation of financial losses, medical records, or expert testimony regarding the impact of the breach on the individual’s mental health or well-being.

Calculating Compensation For Distress After A Data Breach

The Judicial College Guidelines provide legal professionals with a framework for determining how much compensation may be appropriate for non-material damages in data breach claims. These guidelines are published by the Judicial College, which is responsible for setting the tariffs for damages in civil claims in England and Wales.

The guidelines set out different levels of compensation for non-material damages, depending on the severity of the harm suffered. For example, the guidelines suggest that a claimant who has suffered general psychological injury as a result of a data breach may be entitled to compensation in the following brackets:

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

However, these are only rough guidelines. If you’d like to learn what damages you could claim, please call an advisor. They could assess this for you and provide you with legal advice.

No Win No Fee Claims – Get Help With Your Data Breach Compensation Payout

If you are eligible to make a claim, on of our advisors advisor can connect you with a No Win No Fee data breach solicitor, who will work on your behalf to secure the compensation you deserve. A No Win No Fee solicitor will only charge you if your claim is successful, so there is no financial risk to you.

When you work with a No Win No Fee solicitor, you will enter into a Conditional Fee Agreement (CFA). This agreement sets out the terms of your solicitor’s fees, and ensures that you will not be required to pay any legal fees upfront. Instead, your solicitor will only be paid if your claim is successful, and their fees will be deducted from your compensation award in accordance with the Conditional Fee Agreements Order 2013.

We understand that dealing with the aftermath of a data breach can be a stressful and overwhelming experience. That’s why we’re here to help you navigate the claims process and ensure you receive the compensation you deserve.

If you believe that you may be eligible to receive a payout for a data breach compensation claim, we urge you to get in touch with us today. You can contact us via phone, live chat, or our online contact form, and one of our advisors will be happy to help you determine your eligibility.

Further Guidance On Claiming A Data Breach Compensation Payout

Data Creach Compensation FAQS – Read answers to common questions here.

How Much Compensation Could My Data Breach Claim Be Worth? – Learn more about claiming data breach compensation.

Data Breach Compensation Calculator – Further insight into what damages you could claim.

ICO – What We Do – Find out what responsibilities and focus the ICO has.

Latest Cyber Issues – Learn more about cyber issues on the ICO website.

Enforcement Action – Learn about the action the ICO has taken in regards to data protection.