55% of adults have experienced a data breach—that’s around 30 million people in the UK alone. Losing or stealing personal data is more common than we think, and the consequences can be life-altering. 

Personal data isn’t just numbers seen on a screen. It’s bank details, addresses and medical information – the type of data you don’t share without a real purpose to do so.. A personal data breach exposes this information, allowing anyone to access it. Many believe the pain starts and stops there. But the real harm has only just begun. 

In this blog, we’ll uncover the aftermath of a data breach from an individual and organisational perspective. 

Assessing the Risks of a Personal Data Breach

A personal data breach will need to be reported to the information commissioners office unless it is unlikely to result in a risk to the individuals rights and freedoms. The type of personal data matters, especially if you handle special category data. However, context is also ket, it is important to establish all of the facts as quickly as you can to help your judgement as to whether there is any risk to the affected data subjects.

A breach of sensitive or high-risk data can seriously affect someone’s health and well-being, put them in harm’s way or risk losing money or their job. A data protection impact assessment (DPIA) will identify and minimise the risks involved in processing personal data. This is a preventative measure, though, and it is not something done after. 

In this case, you should follow our steps to respond to a data breach.  

How Do Data Breaches Impact Organisations?

Financial Damage

Organisations could experience considerable financial loss from the clean-up of a data breach. You may nned to compensate affected individuals, invest in better cyber security measures, pay legal fees and outsource a data protection consultant to help get you back on your feet. 

A personal data breach is also a fineable offence from the ICO, which could cost up to £17.5 million or 4% of your total annual turnover (whichever is higher). 

Reputational Loss 

When you lose the trust of your customers, stakeholders and staff, reputational damage comes as no surprise. News travels fast. Customers will turn to social media or the press to share their frustrations, driving prospects away from doing business with you.  

Reputational damage is long-lasting and will affect your chances to conduct new business in the future. 

Downtime 

Depending on the size of the breach, you may have to shut down your operations until all investigations have been conducted. Your data champion or data protection officer (DPO) will need to assess the severity of the breach, implement safeguards and address the ICO’s questions. This may take days or even weeks. 

Legal Implications 

Whether a data breach resulted intentionally or not, individuals have the right to seek legal compensation. This will contribute to your financial losses and potentially lead to more serious actions taken by the ICO. 

How Do Data Breaches Impact Data Subjects?

A data breach, if not addressed quickly, can have serious effects on individuals, which include:

• Financial loss: Individuals may lose money to identity theft or fraud. Those with confidential addresses, such as survivors of abuse, may have to relocate, resulting in considerable expenses.  
• Identity theft or fraud: If financial data gets into the wrong hands, hackers can steal a person’s identity and commit fraud. Not only will this victim lose money, but also struggle to get loans, credit cards or mortgages. 
• Loss of confidentiality: Medical information, religious or political beliefs and other special category data are confidential for a reason. When this security is broken down, an individual may face severe distress, discrimination, stigma or even physical danger.  
• Emotional distress: 30% of victims experience emotional distress, including anxiety, depression and physical illness. This is often a secondary effect of the impacts above.  

The ICO Warns Organisations: “You Must Do Better”

In a recent article, the ICO expressed concerns about organisations’ empathy and actions towards data breaches. These businesses must look beyond the operational damage and consider the “far-reaching ripple effect that disrupts [individuals’]  lives in ways that some may not fully appreciate.” 

If you ever go through a data breach, consider its impact on others. Take responsibility for what you’ve done, and as the ICO says, “step up, […] do better, and [….] recognise the critical importance of data protection in safeguarding people’s lives.” 

Listen to episode 193 of The Data Protection Made Easy podcast to learn more about ripple effects. 

Start the Year Compliant with a GDPR Audit 

With a GDPR audit, you can gain peace of mind knowing that your business is meeting the law’s requirements. Our expert team will assess your data-handling processes, identify weaknesses and implement a plan for continuous improvement to remain compliant year-round. Contact our team to learn more.

Had a data breach? Get urgent support now.