As we grow in this digital world, our personal information is always at stake. Today there are several ways by which data breaches can happen. It can be a phishing scam, hacking, malware attack, or a ransom attack. In a data breach, sensitive information like bank details, credit card details, social security numbers, medical records, etc., can be stolen.
Having your personal information compromised can lead to identity theft, financial loss, and emotional distress. According to IBM, the average cost of a data breach reached $4.45 million in 2013.
In simple words, a data breach can be defined as when someone who shouldn’t have access to your personal information steals and uses it. This can happen through hacking, cyberattacks, or maybe by human errors. There are certain legal ways to claim data breach compensation. This article gives a clear idea about how to legally navigate after a personal information breach.
Filing a Class Action Lawsuit
A class action lawsuit can be filed when a company’s negligence led to the data breach. A class action lawsuit means it’s a lawsuit that is filed by a group of people with similar grievances. By filing this lawsuit, you can sue the company and get compensation for your loss. To join a class action, look out for public notices regarding the data breach cases or get in touch with a lawyer.
The positive of a class action lawsuit is that it requires minimal effort from you. Also, you may receive compensation without filing an individual lawsuit. The drawbacks are you only get a small amount of payout, and it can take years.
File Individual Lawsuit
If you have had a significant amount of financial or emotional harm, you can file an individual lawsuit. An individual lawsuit may get you higher compensation if the damage done is proved. It gives you full control over the case. The negative thing about individual lawsuits is that they’re very costly and require a lot of your time. Also, you need strong evidence to prove that you have faced substantial damage.
Call for State or Federal Privacy Laws
Federal and state agencies offer several ways to get justice.
Federal Trade Commission (FTC): The FTC is the primary U.S. consumer protection agency. You can file a complaint with them. A high number of complaints can force the agency to investigate the company and file an enforcement action against them.
State Data Breach Notification Laws: After a data breach, most state laws say that businesses must notify the state’s Attorney General. You can file a complaint with your state’s office to lead an inquiry.
State Privacy Law: New state-level privacy laws provide customers more power. In some cases, it allows them to sue for the damages even if they have not lost any money.
Negotiate Settlement
In certain cases, you are allowed to negotiate directly with the company that’s responsible. They may offer settlement in cash payment to avoid litigation. Consult a lawyer to make sure you get the right compensation.
Press a Claim Against Third Parties
If a third party like a hacker or identity thief stole your personal data, it is hard to find them. In such a situation you can still sue the company that failed to protect your data. Because it’s their primary responsibility to have good security practices to safeguard your data.
Choosing the Right Legal Path
The best legal option can depend on the type of breach and harm you have suffered. If the damage is minimal, join a class action lawsuit. For significant damage you can file an individual lawsuit. Consulting a lawyer can be very helpful in choosing which option suits your case.
Immediate Steps to Take After a Potential Data Breach
- Confirm that your data was stolen.
- Secure your account by changing the password or even turning on two-factor authentication. If a financial breach happened, inform the bank.
- Document everything, like records of financial loss, expenses related to the breach, etc. This documentation helps you in future legal
- File a complaint with the Federal Trade Commission. You may also report the breach to your state’s attorney general or local law enforcement if identity theft occurs.
Ways to Prevent Future Data Breaches
- Use a strong password or prefer using a password manager.
- Regularly monitor your financial and credit reports.
- Do not share your credentials and personal information with anyone online.
- Keep your software updated for best protection.
- Frequently conduct security checks.
Key Takeaways
- Breaching of personal information can be very stressful.
- One can join a class action lawsuit if the damages dealt are minimal.
- Otherwise, you can file an individual lawsuit to gain total control of the case and get a higher compensation.
- A lawyer can guide you legally when your personal information is exposed.
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