You Can Now be Sued for Data Breaches

Have you ever thought about the ramifications of having a data breach compromise the personal data of your clients? In the past you could issue an apology, make a note about beefing up cybersecurity, buy some credit protection for affected people and call it a day. Not anymore. Now you could be facing a lawsuit.

In 2014, CareFirst Blue Cross Blue Shield became the victim of a cyberattack in which the personal data of over a million customers was stolen. A class action lawsuit was dismissed by the DC US District Court in 2016, but the DC US Court of Appeals recently overturned that ruling.

The ruling, privacy attorneys say, is significant in that it, if the lawsuit is successful, it says stolen private data creates enough of a risk of identity theft that a company can be shown to be negligent when it comes to securing sensitive personal data.

These suits have historically been thrown out, often because there’s no actual provable damage to the plaintiffs, but the courts’ opinions have begun shifting. This case in particular could signify a shift in how these cases are ruled.

How prepared is your company in the instance of a data breach? Are you willing to let your cybersecurity slide in hopes that your company won’t be affected? Would you be willing to wager millions of dollars on that? You should schedule a consultation with us. In fact, we’ll go ahead and let you start saving money by giving you an initial consultation, a $4997 value, for free. Don’t delay, because a data breach could bankrupt your company.


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