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Home » Blogs » The Legal Consequences of a Data Breach in the UK
With the average cost of a data breach in the UK now at £2.8 million, organisations need to protect themselves just to ensure they can remain operational.2 Unfortunately, protecting an organisation against all forms of cyber crime at all times borders on the impossible.
However, those with comprehensive action plans and security measures in place are best able to mitigate the consequences of a breach. The legal implications of a breach can often be overlooked, but in the UK these are now clearer than ever under General Data Protection Regulation (GDPR).
In this article, we’ll be walking through the legal ramifications of a data breach and what preemptive steps organisations can take to protect themselves. Let’s get started.
In May 2018, the European Union (EU) introduced GDPR to reinforce the rights of individuals over how their personal data was used and stored. Following the UK’s departure from the EU, GDPR was subsequently incorporated into the domestic law in the UK.
Under current GDPR regulations, organisations that experience a serious data breach can face a number of repercussions. These include:
If an organisation is found to have breached GDPR, they can potentially receive a fine of up to £17.5 million or 4% of their annual global turnover, whichever figure is greater.
Suggested reading: For more on how a data breach can impact organisations financially, check out our blog — The Financial Impact of a Data Breach in 2021
Under GDPR, customers who have been impacted by a data breach have the right to take the organisation that has allowed their sensitive information to be accessed to court in order to claim compensation.
Affected individuals can claim for both material damage, such as the loss of money, and non-material damage, such as emotional distress caused by the loss of their data.
While not as common as the first two ramifications detailed above, GDPR still provides for the threat of personal prosecution as a result of a data breach.
Where a complaint has been made, the ICO does have the authority to pursue individuals through the Courts.
The majority of these prosecutions are made under section 55 of the Data Protection Act 2018, which added the offence of “knowingly or recklessly retaining personal data without the consent of the data controller.”
As you can see from the data and examples outlined above, there are significant costs and implications that can arise as a result of the mishandling of data.
The ICO is in a position to levy significant fines against any organisation that has been found to be in breach of the provisions of GDPR.
In addition to those fines, there is already a significant history of organisations facing individual and class action lawsuits from customers impacted by a data breach, adding to the overall losses they are already likely to suffer.
Once the direct fines and litigations have been cleared up, the reputational damage caused by a mishandled data breach can result in the loss of customers, sales and revenue, further exacerbating the problem.
Under GDPR, directors, advisors, and staff can all find themselves personally liable for the mishandling of sensitive data, and can potentially face the prospect of being prosecuted for negligence or misuse.
The question is, what should your organisation do to mitigate and minimise these risks to avoid disastrous consequences?
As we’ve already noted, there is, unfortunately, no guaranteed way to secure your organisation entirely against the threats posed by the ever-evolving cyber crime landscape.
However, putting in place a robust cyber security strategy can help to shield organisations from the legal fallout of a potential data breach, and ensure compliance with the standards set out in GDPR.
Fortunately, there is help available. Here at Six Degrees, we work with a range of organisations to provide resilient, industry-leading cyber security outcomes.
We are fully equipped to provide our customers with robust, end-to-end cyber security services, including consultation on the development of cyber security strategies. Our solutions provide a proactive approach to help you reduce the threat of a data breach — get your Aegis cyber security maturity assessment today.
By working with Six Degrees, organisations can put their cyber security strategies in the hands of our expert team, and most importantly get back to applying their time and resources to developing and optimising commercial outcomes. Get in touch with our team today.
Additional reading: To learn more about our cyber security methods, take a look at our blog — The Six Degrees Approach to Cyber Security
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