Data Breach Compensation Process Explained

For better or worse, we are living in a digital age.

And with the progress that technology affords us, and the advantages we have over previous generations, comes an ever-growing and potentially catastrophic problem: online security.

Data breaches, carried out by highly-skilled hackers, are becoming increasingly common – but the effects on its victims can be devastating.

Those affected are usually blameless. But those innocent victims can suffer a financial impact, in addition to the emotional distress caused by having their personal data stolen.

Without effective cyber-security measures, businesses are leaving their clients and customers at risk of having their identity and money stolen. At the very least, the victims will feel a strong sense of privacy violation and may face the hassle of arranging responsive and/or preventative measures to protect themselves.

Given the rise in incidents of hackers accessing companies’ systems, it is perhaps no surprise that numerous data breach compensation claims are being lodged, with customers looking to redress the balance after having their details accessed illegally.

If organisations fail to adequately protect the personal details of their customers, it’s a failure that can have far-reaching consequences for the victims.

If, by now, you are thinking about an instance when your sensitive data was exposed by cybercriminals think about the financial losses you suffered and the emotional distress that was caused. Thousands who have been affected by data breaches have made successful bids to obtain redress via legal action. And you need to make sure you don’t miss out.

A primary concern when looking at how to lodge a successful compensation claim is examining the processes employed by the organisation in question, particularly its cybersecurity measures. Are they adequate and up to date? Did the company fail in its duty of care? Did they take steps to make amends once the breach had been identified?

A successful compensation claim requires proof that the organisation in question failed. You will also need to illustrate the severity of the data breach and the harm it caused you. This could be emotional harm due to stress, financial loss or needing to pay for credit monitoring services to keep on top of – and protect – your credit rating.

Organisations are legally obliged to securely store and process the information they hold about individuals. A breach of this information means that General Data Protection Regulation (GDPR) applies, which is likely to give their customers the right to submit a litigation claim. Not all data breaches automatically result in successful compensation claims, however.

Having highly-sensitive information, such as financial details or medical records, accessed by cybercriminals should mean victims have a stronger data breach case to put to the defendant. Being able to prove financial losses, such as unauthorised purchases or opening fraudulent accounts, is likely to result in significant compensation awards.

For a successful outcome, the claimant will need to show that there were clear failings by the company’s data controller and/or processor, who are responsible for following data protection laws. Clear examples of non-compliance, or simply negligence, strengthens your case.

So, onto the procedure of claiming compensation. Once your legal representative contacts the company in question with the complaint they have three months in which to provide a response.

If they admit liability, then your case can be completed within a relatively short time frame. All that remains is for the two parties to agree a settlement figure.

Should they dispute that they are liable – or fail to provide a response – then other options, including the issuing of court proceedings, will need to be explored.

The data breach compensation process can be a complex fight once the defendant has denied liability. They may try to argue that they had the necessary data protection measures in place and had done what could reasonably be expected of them. They could also claim that the harm caused to the victims was minimal.

What is clear is that cybersecurity and protecting customers’ sensitive information is becoming increasingly important for companies, as is the legal landscape for data breach incidents.

It is a challenge for large corporations and smaller businesses but they can be held accountable for a failure in protecting data.