Personal data must be adequately protected. A personal data breach by an accounting firm or accountants could expose a large amount of personal information or this data could even be misused, potentially giving rise to an accounting firm data breach claim.
Given the nature of accountancy work, accountants and other professional services firms can be responsible for storing and processing lots of personal information. In this guide, we will look at when you could have a valid personal data breach compensation claim, and how an accounting personal data breach could happen.
Additionally, we explore the different types of damage you may suffer due to a personal data breach and how compensation for each could be calculated. Finally, we end this guide by sharing how the solicitors on our panel could assist with data breach compensation claims on a No Win No Fee basis.
Contact an advisor today with no obligation to discuss your case by:
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Select A Section:
- Can You Make An Accounting Firm Data Breach Claim?
- How Could An Accounting Data Breach Happen?
- How Do You Know If You’ve Suffered An Accounting Data Breach?
- Potential Compensation For An Accounting Firm Data Breach Claim
- Why Use A No Win No Fee Solicitor To Make An Accountant Data Breach Claim?
- Read More About How To Make Data Breach Claims
Can You Make An Accounting Firm Data Breach Claim?
Personal data is any information that can identify you and includes things like your:
- Name.
- Address.
- National Insurance Number.
- Email address.
Any data controllers or data processors that handle your personal data must adhere to the rules and regulations set out within the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018 (DPA). This is because, together, these are data protection law in which your personal data is protected under.
A data controller decides when, how and why your data is being processed and is usually an organisation. A data processor is usually an external agency that processes data on the controller’s behalf. If either of them fails to take the necessary steps and measures to protect your data, this could lead to a personal data breach.
A personal data breach is classed as a security incident that affects the integrity, availability or confidentiality of personal data.
As a data controller, your accountant and accounting firm must adhere to data protection laws. You could be able to make an accounting firm data breach claim if you can prove:
- A data breach occurred due to a data controller or processor (such as an accounting firm) failing to adhere to data protection laws.
- Your personal data was involved in this breach.
- The personal data breach caused you to suffer mental harm or financial losses.
What Personal Information Could An Accountant Have?
An accountant will naturally have access to lots of your personal information. Documents containing your personal information that your accountant may have include:
- Tax records.
- Payslips or salary information.
- P60’s.
- Business contracts.
- Scans or copies of important documents such as your passport or driving licence.
There are other documents that an accountant could have containing personal information. If you would like to discuss making an accounting firm data breach claim, you can speak to one of our advisors free of charge and without obligation.
How Could An Accounting Data Breach Happen?
There are many ways that an accounting data breach of personal data could happen. Some examples are:
- An accounting firm fails to adequately update their cybersecurity and they become the victim of a cybersecurity attack which exposes your personal data.
- Your accounting firm does not store your personal data correctly or safely, e.g. it is left in an unlocked cabinet or in a public place, causing it to be lost or stolen.
- An accountant verbally discloses some of your personal data without your consent or a lawful basis for doing so.
There are many other ways a personal data breach can occur through human error or other means, and if you would like to discuss your specific circumstances, you can contact one of our advisors to see if you have a valid accounting firm data breach claim.
Why Are Accounting Firms Potentially At Risk Of A Data Breach?
Unfortunately, due to the potential value of the information held by accounting firms, they could have a higher risk of becoming a target of cyber attacks from cyber criminals. This can be common for smaller firms, who may not be as equipped to defend themselves, leading to them being targeted more frequently, for example. The data that they hold can be used to commit fraud or put the accountants or their clients to ransom.
A well placed cyber attack could yield banking information, ID documents or tax information. These documents could be sold on the dark web or used for identity theft and fraud.
To see whether you could be eligible to claim compensation following a personal data breach, you can contact our advisors.
How Do You Know If You’ve Suffered An Accounting Data Breach?
If your accounting firm has suffered a data breach that has compromised your personal data, they are obligated to inform you of this without undue delay if your freedom and rights may be at risk. This correspondence could be via letter or an email. It should inform you what personal data of yours has been breached. This data breach notification letter could be used as evidence when making an accounting firm data breach claim.
Alternatively, if you have suspicions that your personal data has been breached (e.g. money has been taken from your account or you are receiving suspicious emails) but you have not been informed of one, you can contact the organisation for confirmation. If they confirm that your personal data has been breached, this can also be used as evidence in your claim.
Other forms of evidence that could help you claim data breach compensation include:
- The results of an investigation by the Information Commissioner’s Office (ICO). This is an independent body that enforces data protection laws. You can report a data breach to them within 3 months of your last meaningful communication with the organisation responsible for the breach.
- Medical evidence of any psychological injuries you have suffered due to the breach. This could be your medical records or a diagnosis letter from a psychiatrist, for example.
- Evidence of your financial losses. For example, payslips could help prove a loss of earnings.
Other forms of evidence might be beneficial, and our advisors can discuss this with you when you contact us to inquire about making a claim.
Potential Compensation For An Accounting Firm Data Breach Claim
If you make a successful accounting firm data breach claim, you could receive compensation for you non-material and material damage.
Non-material damage is any psychological harm you suffered due to the personal data breach. This could be anxiety, depression, post-traumatic stress disorder (PTSD) or other psychological injuries.
To value these injuries, your personal data breach solicitor might use the Judicial College Guidelines (JCG). The JCG has guideline compensation amounts for different physical and mental injuries.
We have used the JCG’s figures relating to mental harm in the table below, aside from the top entry. Please remember that these should only be used as guidelines.
| Injury | Compensation Guideline | Description |
|---|---|---|
| Severe Psychiatric Damage with Financial Losses | Up to £250,000 + | A compensation settlement that accounts for significant psychiatric injuries and financial losses such as lost earnings. |
| Psychiatric Damage - Severe | £66,920 to £141,240 | Very poor prognosis with a significant impact on life and the ability to work. |
| Psychiatric Damage - Moderately Severe | £23,270 to £66,920 | Despite suffering with significant issues there is a more optimistic prognosis than severe cases. |
| Psychiatric Damage - Moderate | £7,150 to £23,270 | A marked improvement in symptoms over time and the prognosis is good. |
| Psychiatric Damage - Less Severe | £1,880 to £7,150 | Length of disability and impact on sleep and daily activities will affect how much is awarded. |
| Post-Traumatic Stress Disorder - Severe | £73,050 to £122,850 | Permanent effects which prevent working or functioning at a pre-trauma level. All aspects of life are badly affected. |
| Post-Traumatic Stress Disorder - Moderately Severe | £28,250 to £73,050 | Effects cause significant disability for the foreseeable future. However, there is room for some recovery. |
| Post-Traumatic Stress Disorder - Moderate | £9,980 to £28,250 | Psychological symptoms that have largely recovered and continuing effects will not be grossly disabling. |
| Post-Traumatic Stress Disorder - Less Severe | £4,820 to £9,980 | Within one to two years a virtually full recovery will have been made. |
Data Breach Compensation For Material Damage
You could also receive compensation for any material damage you have suffered due to the personal data breach. This refers to the financial losses you have suffered. For example, this could include:
- Lost earnings for taking time off due to the mental harm you suffered.
- Security costs if your home address was breached.
- The costs of therapy.
Contact our advisors today with any questions you may have about the data breach claims process.
Why Use A No Win No Fee Solicitor To Make An Accountant Data Breach Claim?
Our specialist panel solicitors can work on your claim on a No Win No Fee basis by potentially offering you a Conditional Fee Agreement. The advantages this offers include:
- Pay nothing upfront for your solicitors legal work.
- No ongoing fees to pay.
- Nothing to pay for your solicitor’s work if your case is unsuccessful.
- A success fee will be due to your solicitor if you win your case. This will be a fixed percentage of your compensation. There is a legally imposed maximum and it will be agreed before your case begins.
To see if you could work with one of the solicitors on our panel for your accounting firm data breach claim, you can contact our friendly advisors:
- Calling us on 020 8050 3051
- Contacting us online.
- Engaging with the live chat at the bottom of your screen.
Read More About How To Make Data Breach Claims
Further data breach claims guides by us:
- Is there a time limit for making claims for personal data breaches?
- What to do if you are the victim of an email data breach.
External materials:
- What is special category data sometimes known as sensitive data according to the ICO?
- Guidance for individuals on how to protect themselves from a data breach from the Nation Cyber Security Centre.
- Learn how to make a complaint about a data breach from Gov.UK.
Contact us today to discuss your accounting firm data breach claim and receive free advice.