Data breaches could 'result in more commercial disputes'

Published on 9 Aug 2010 under category: legal

Companies are failing to take simple precautions to protect consumer data, according to one industry body.
Verizon Business this week published a report highlighting how only four per cent of all recorded data breaches had required an extensive level of security to prevent them.
In addition, almost two-thirds (60 per cent) of breaches are discovered by external parties, long after the damage is repairable.
The report concluded that firms failed to notice breaches because they did not have enough staff, tools or procedures in place.
Consumers and business partners could enter into legal action and commercial disputes unless more care is taken with their data.
Alexei Lesknykh, business development manager for the data leak prevention solutions firm DeviceLock, said that firms would have to act now in order to avoid breaking the law.
"Organisations in other industries do not feel this pressure and have not yet really suffered from data leaks. So, they believe the risk of financial and reputation loss from insider originated data breaches is low, and unlikely to affect them.
"Now the situation has changed, because, as of April 6th 2010, organisations can be fined up to £500,000 for serious breaches of the Data Protection Act," he commented.

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