Impact of Data Breaches

We all value our security, in all walks of life.

We lock our doors and windows at home, we keep our personal details – bank, ID, employment and more – private and we are increasingly wary of those trying to scam us and steal our money. Account numbers, personally-identifiable information and payment card details are all paydirt for hackers.

And now that virtually all our financial dealings are carried out digitally, efficient and effective cyber-security is paramount.

Protection from thieves is everything and without it we feel exposed and vulnerable.

So, what happens when security fails us and malicious actors (aka low-life criminals) gain access to our valuable data? The repercussions are, at the very least, hugely annoying but they can also be highly distressing, with far-reaching and severe for our finances.

The consequences of a data breach for individuals can be short and long-term, but none of the outcomes provide good news for the victims.

In the short term, personal information (potentially as little as a name, address and date of birth) that a hacker has stolen could be used to open new accounts fraudulently, claim benefits or make loan applications and purchases in the victim’s name. Compromised credit card, bank account or other personal details can lead directly to losses for the unsuspecting victim as well.

All of which can have a negative effect on a person’s all-important credit rating, which in turn can impact their ability to secure credit. Some organisations do offer free credit monitoring services to those affected by a data breach but the effectiveness (and duration) of such assistance can be limited. The fraud prevention service CIFAS (which was established as the Credit Industry Fraud Avoidance System) can help with proactive monitoring of any applications for loans or other financial products made in your name or from your address.

Some data-holding organisations can provide assistance in the form of identity theft insurance to help cover the costs associated with the arduous task of getting these issues resolved. But, ultimately, people will generally be left to fend for themselves, monitor their own financial accounts and credit reports for any suspicious activity.

In extreme circumstances a decimated credit rating could also ruin someone’s chances of presenting as a reliable renter or mortgage applicant, or even as a potential employee to hiring managers.

And that’s just the immediate aftermath of a data breach.

Looking to the longer-term effects, there is an ongoing vulnerability, with personal data circulating on nefarious sites, commonly known as the ‘dark web’, meaning data breach victims may be at risk for years to come.

That could be years of emotional distress for victims.

Having our privacy violated, say by burglars entering our homes, is upsetting and disturbing. It’s the same with hackers poking around our confidential data, especially when we know they’ll be trying everything they can to profit from it. Even if victims are able to get their bank to freeze their account and nip prospective damage in the bud by getting protective measures in place quickly, there is still that nagging knowledge that their confidential details are out there somewhere.

These concerns aren’t limited to victims’ personal lives either.

Let’s suppose that person had their professional credentials or sensitive company information accessed by black hat hackers. Their personal integrity and professional reputation could, perhaps unfairly, be called into question and their present and future employment prospects affected.

Resolving these issues is far from straightforward too – getting yourself back on track is a real hassle and source of frustration, not to mention time consuming.

What is clear is that a victim of data breaches can be facing emotional stress and devastating financial harm. Through no fault of their own, their data has been entrusted to an organisation that has failed to have adequate measures in place to protect it.

The world around us is becoming more digitised and with that comes a need for businesses to have ever-more robust security measures in place. The impact of a data breach extends beyond the need to change your Instagram password or order a new debit card from your bank.

And all this is often caused by inadequate cyber-security protocols and procedures at businesses entrusted to protect their clients and customers.

If your personal data has been compromised, you may be eligible to claim compensation from the company that failed to protect it. Barings Law’s experts can help you make your claim and make your case to the defendant. And as we work on a no-win no-fee basis there’s no financial risk to you for making a claim. If we don’t win your case for you, you don’t pay us a penny for our services.

Click the button below to set the wheels in motion, completing the form is quick and easy. We’ll get to work preparing your claim and we’ll be in touch with an update as soon as possible.