As people live more of their lives online, criminal activity on the internet has also increased. Data breaches, ransomware incidents and similar misconduct can cause devastation to affected individuals and targeted businesses while providing sources of unlawful revenue, such as identity theft, for those engaging in digital misconduct.
Companies that collect sensitive information, including financial and medical records, need to be especially fastidious about protecting consumer information. If a significant data breach occurs, can those affected file a lawsuit against a company that failed to protect their information?
Yes, data breaches are often actionable
The greater the degree of trust that consumers must grant a business with their private information, the higher the potential duty of care those companies owe their customers or clients. Medical patients and those hiring financial advisors, for example, should be able to trust the security of their personal identifying information and medical records.
Breaches can affect a person’s credit score by putting them at risk of identity theft. Credit disruptions can even impact employment, as many of the best jobs require that workers pass background checks that look at not just their criminal record but also their credit history.
Businesses should make every reasonable effort to minimize the chances of a data breach that puts their customers/clients at risk. Consumers affected by major data breaches at companies that have a duty of care to protect their information can potentially work together to hold the company accountable and recoup the losses generated by the data breach.
Joining a class action lawsuit or initiating one is a complex legal matter that frequently requires the support of a lawyer. Consumers affected by a substantial data breach involving a large company may need assistance determining if they are in a position to take legal action, and that’s okay.