A Look at the Legal Consequence of a Cyber Attack

by Tripwire Guest Authors on January 25, 2021

Is your system 100% ready to face the severest cyber-attack and mitigate the risk of a possible data breach? If you are unsure about your cyber-safety structure, then it’s time to upgrade it. Otherwise, you could be at risk of lengthy legal battles that result in hefty fines. Beyond that, the cost in terms of reputational loss could be catastrophic if not handled meticulously by professionals within a reasonable time. Despite the best cybersecurity practices, cyber-attacks and data breaches are on the rise. Be it personal, financial, health, intellectual property or IT security information, data theft is a constant threat for everyone.

Compared to 2018, reported data breaches in 2019 jumped by 33.3%, and record breaches jumped by 112%, according to a Risk Based Security research report. Unfortunately, there hasn’t been a commensurate rise in organizational preparedness to lower the risk of cyber-attacks. A Kaspersky study showed that over 57% of respondents don’t have a cyber-security policy in place, and in cases of medium-size businesses, the number jumps to 71%. This means smaller and medium-sized enterprises are at greater risk of legal consequences if they fail to follow relevant laws of the land.

In the modern digital space, data is more valuable than oil or gold. If you’re in possession of customer data, you are legally bound to protect it from cyber-attacks. Since cyberspace is highly dynamic, cyber law is evolving accordingly to ensure optimum protection. A failure to ensure the safety of your company’s customer data against sophisticated cyberattacks could lead to hefty fines. All businesses, but especially small and medium businesses, must know about the legal consequences of a data breach and the available solutions that can protect themselves from cyber-attacks and their consequences.