Cybersecurity has received more attention over the last few years for good yet alarming reasons. More and more businesses have taken their operations online, and this increased reliance on technology and the Internet has also led to more vulnerabilities. Now that many people work using their home Wi-Fi, they’re at risk for malicious attacks, as their connection is substantially less secure than those at their workplaces.
Unfortunately, cyber-attacks are growing more sophisticated by the day. According to the Department for Business and Skills’ 2015 Information Security Breaches survey, 90 per cent of large organisations had experienced a security breach in the previous year. These breaches are also prohibitively expensive, as the worst breach cost a large organisation a jaw-dropping £1.46 million to £3.14 million. For this reason, it’s essential to invest in cybersecurity to protect yourself from costly breaches that will jeopardise the safety of your business and your customers. Here are some legal issues you need to know:
The Data Protection Act of 1998
All organisations must understand their legal obligations when it comes to cybersecurity to ensure everyone’s protection. You’ll have to ensure that your compliance with these obligations also aligns with your business objectives while steering clear of risky areas, as cybersecurity management is not merely something on a to-do list.
British businesses must know the Data Protection Act 1998, which obliges organisations to “take appropriate and technical organisational measures” to safeguard personal data from unauthorised access, loss, damage, or distribution. These companies must take measures to guarantee an appropriate level of protection while accounting for the potential harm that individuals may suffer during a data security breach. The Act also notes that organisations must consider the condition of technological development and the expenses accompanying implementation when deciding on suitable security measures.
Your business has enough wiggle room to conduct a risk assessment and customise security measures to ensure they’re as airtight as possible, protecting you from real risk. However, the Data Protection Act does not mandate organisations to prevent cybersecurity breaches from occurring at all. Instead, it requires businesses to take all relevant measures to defend such data from unauthorised, malicious access. If a breach occurs despite your best efforts, then there won’t be a legal breach. Still, it’s important to note that the regular has a high standard for implementing all appropriate measures.
Breach of Contract Lawsuit
You’ll also want to be aware of getting hit with a breach of contract lawsuit. In this lawsuit, you’ll need to have a contract detailing each party’s responsibilities. In the context of cybersecurity, one party may file a lawsuit against your business for suffering a data breach that resulted in harm, damage, and losses. To prevent this from happening, be sure to let your client know of your responsibilities and their extent in cybersecurity. You’ll also want to include clauses in your contract to reduce your liability.
A negligence lawsuit involves one party filing a lawsuit against the other for not taking reasonable caution in cybersecurity matters, resulting in harm and loss. All organisations are obliged to provide their clients with the standard of care, and if you don’t meet this standard and subsequently hurt your client, they can sue you. To prevent this, you’ll want to hire an ISO consulting group to ensure everything you do is sound, legal, and doesn’t provide any grounds for a lawsuit.
Data security breaches can be devastating for organisations. Not only can it result in data loss, but it can also cause your customers to lose trust in you. By being aware of these legal issues, you can take the appropriate steps to implement security measures and protect your and your customers’ data.
Scaramanga is a team of ISO certification consultants specialising in data protection, information security, and compliance consulting. We also have a data protection management system, a comprehensive software solution that can handle all your central data protection processes. Get in touch with us today to learn more about how our experts can help you reinforce your cybersecurity!