What is Data Breach Law?
A data breach is an event in which protected or sensitive information is exposed and stolen. Examples include phishing attacks, ransomware, lack of access controls, and stolen credentials.
To prevent a data breach from happening, or to minimize its consequences, there need to be measures in place. Data breach laws refer to the governing framework of regulations and notification laws to follow when a breach occurs.
Read the rest of this article to explore what data breach law covers, what to do during a breach to remain compliant, and how a lawyer can assist you with protecting your data and business reputation.
What are State-Defined Data Breach Laws?
All states in the U.S. have data breach laws in place to protect consumers. These laws insist that companies must alert consumers in the event of a data breach. Notification requirements for informing affected people vary by state.
Generally, the United States Securities and Exchange Commission (SEC) states that public companies need to disclose cybersecurity incidents within four days of determining if the breach is material, or significant enough to be reported.
By comparison, under the HIPAA (Health Insurance Portability and Accountability Act), healthcare organizations have 60 days to notify affected individuals about breaches that affect more than 500 people.
Although there isn’t a national privacy law in the U.S., there are federal privacy and data security laws in place and others at the state level. Knowing about these is important to ensure companies properly handle breaches.
What Should Companies Do During a Data Breach?
In the event of a data breach, there are specific steps that companies should follow. These include the following.
Secure Your Systems
Try to fix any vulnerabilities that could result in further breaches. Change access codes and engage your breach response team so that you can prevent further loss of data. You also want to engage experts on your team, such as forensics.
They will be able to identify if encryption was enabled when the breach occurred, while monitoring data usage. They’ll check exactly what data was compromised and who was affected so you get clarity.
Notify People of the Breach
Depending on your state’s requirements for data breach notifications, you should contact all affected people, such as employees, investors, and customers.
Stick to the truth of what happened and avoid making any misleading comments about the breach. Make sure you don’t share information that could put consumers at risk, such as by publicly confirming personal data.
Consider Information Exposed in the Breach
The type of information that was exposed in the breach might vary from that of other breaches, which could require you to comply with specific laws or regulations. It’s essential to check all federal and state laws so you don’t miss something important.
Ensure Regulatory Compliance
There are regulations and laws that govern cybersecurity standards, such as the General Data Protection Regulation (GDPR). Not aligning yourself with these rules can result in penalties for your business.
How Can Companies Prevent Data Breaches?
To protect and secure your company data against breaches, there are various things companies can do. These include:
- Access control provisions. This includes multi-factor authentication (MFA) for systems to prevent stolen credentials and restricting employee access to what they require for their job roles.
- Data encryption. If hackers manage to access the systems, encryption will reduce the damage that can be caused. Data should also be securely stored.
- System updates. These are crucial to maintain the latest security standards.
- Regular monitoring. Scanning for threats will ensure early detection that reduces risk and damage.
- Training employees. Employees in the company should have access to training so they can report suspicious activity and adopt tips for maintaining data protection measures.
- Know signs your business is vulnerable. You should be aware of potential signs you could face a data breach, such as a lack of the above points.
How Can a Lawyer Help You with Data Breach Law?
Working with a lawyer is beneficial if you’re dealing with a data breach or you want to ensure your company documents are aligned with all relevant regulations and laws. Here is how they will assist you.
- A lawyer will consider if you’re dealing with a significant breach and explain who might be legally liable.
- Since data breach laws vary by jurisdiction, they’ll explain all your obligations.
- They’ll formulate a plan for what to consider during breaches, such as notification requirements.
- They’ll help you seek damages. If you’re affected by a data breach, your lawyer will help you to file claims or join class action lawsuits, if these are relevant to your situation.
- They’ll reduce your risks after a breach. This can include advising you on legal protections like setting up fraud alerts.
- They’ll communicate with other parties on your behalf, such as insurers and companies.
Where to Find a Lawyer for Data Breach Law
If you need to hire a lawyer for help with a data breach, you should consult with a lawyer on ContractsCounsel, one of the largest online legal marketplaces where clients connect with qualified lawyers who have been vetted on the platform. They will guide you through the data breach process, ensuring you stay legally compliant with all relevant laws and regulations.
They can also review or draft important documents you might need during a data breach, such as breach notification letters, privacy policies, terms of service, and third-party contracts.
To request a review of your company documents or contracts, follow these steps:
1. Go to the ContractsCounsel marketplace.
2. Post your project for free.
3. Wait for lawyer bids. You’ll receive multiple bids from lawyers directly on the platform who can assist you.
4. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of data conveniently on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.
5. Connect with a lawyer you think is best suited to your requirements and hire them for the project.
