Financial Loss Due To A Data Breach | Can I Claim?

Suffering a financial hit due to a compromise of your personal data can leave you feeling anxious, stressed, and unsure about what to do next, as well as out of pocket. Your data is important, and the breach of it could compromise your safety and security. You could claim compensation for financial loss due to a data breach.

Key Takeaways

  • Financial losses are referred to as ‘material damage’ in a data breach claim.
  • You could recover the costs of therapy as well as anything required to enhance your security.
  • Additionally, you could also receive compensation towards any moving fees.
  • Personal data breaches happen when the confidentiality, availability, and integrity of your identifying information are compromised.
  • Laws are in place to protect personal data, which is any information that can be used, either by itself or with other pieces of information, to identify you as the subject.

Our panel of solicitors could help you claim for financial harm caused by a lack of data security. To find out if you can claim, talk to an advisor today. All our advisors are highly experienced in dealing with data breach claims and will let you know if you are eligible.

Graphic of red data breach text.

Frequently Asked Questions

  1. Can I Claim Compensation For Financial Loss Due To Data Breach?
  2. What Types Of Financial Losses Can Be Compensated?
  3. How Can I Prove A Data Breach Led To Financial Losses?
  4. How Long Will I Have To Claim Back Financial Loss After A Data Breach?
  5. Can A Solicitor Help With My Financial Losses Claim?
  6. Learn More

Can I Claim Compensation For Financial Loss Due To Data Breach?

If the following things happened, you may be able to claim data breach compensation if you have suffered financial loss due to data breach.

  • The data breach happened due to a lack of adherence to data protection laws. This could be due to human error or stolen data.
  • Your personal data was included in the breach.
  • You experienced financial loss following the data breach.

The Data Protection Act 2018 (DPA) and the UK General Data Protection Regulation (UK GDPR) are the acts that state how data controllers and processors must use your data. A data controller is generally an organisation that determines how your data will be processed and for what purpose. Process means what is done to data, such as recording it and storing it. A data processor may be appointed to carry this out on behalf of the controller.   If your data is not used, stored, or destroyed in accordance with the DPA and  UK GDPR, and this results in financial or mental harm, it may be potential grounds for a compensation claim.

Reach out to an advisor if you’re unsure about eligibility when claiming compensation for data breaches.

What Types Of Financial Losses Can Be Compensated?

Financial losses are referred to as ‘material damage’ in personal data breach claims. Material damage includes lost income, therapy costs, or relocation costs, which you can find examples of in this section.

Lost Income

  • After their personal data is exposed in a data breach, a person has to take additional time off work due to the anxiety they experience in the aftermath of the breach.
  • An employee has to stop working for several months due to psychological harm from a data breach, including depression. They experience a loss of earnings as a result.

Paying For Therapy

  • Due to mental harm following a compromised data breach, a person has to attend regular private therapy sessions for anxiety.
  • Long-term therapy is recommended after a cybersecurity breach causes a victim to develop post-traumatic stress disorder.

Paying For Relocation Or Home Security

  • A person’s stolen data leads to them receiving threatening letters that escalate. The involved person eventually has to move due to security concerns regarding the threats.
  • Following a data breach, the affected person feels unsafe in their home when their address and other personal data is leaked. They pay for a high-security system that covers all parts of their house and grounds for better peace of mind.

If you’re out of pocket in a different way to the above, we recommend you speak to an advisor to see if you could still claim compensation for financial loss due to a data breach.

Stressed man with hands on head.

How Can I Prove A Data Breach Led To Financial Losses?

It’s important to gather as much evidence as possible to prove that you experienced financial loss due to data breach. This is because the more evidence you have, the stronger your case is likely to be. Some examples of evidence are:

  • Any reports made to the Information Commissioner’s Office (ICO), an independent body that ensures data protection legislation like UK GDPR and the DPA is adhered to.
  • Bank statements, invoices, and other ways to prove financial losses.
  • Emails or letters indicating that a data breach has occurred and that you were one of the affected data subjects.
  • A letter from a psychiatrist or medical records to show mental harm.

If you have any further queries about evidence for data breaches, our advisors are here to assist.

How Long Will I Have To Claim Back Financial Loss After A Data Breach?

You have up to six years to claim compensation for financial loss due to data breach. This time limit may vary, and we always recommend speaking to an expert in data breach claims, like our panel of solicitors.

Call, choose the contact form, or opt for the live chat to find out more about the limitation period for data breach claims.

Can A Solicitor Help With My Financial Losses Claim?

Claiming compensation after a data breach doesn’t have to add to your stress. With our panel of solicitors, you’ll know you’re in the right hands. Some of the services all solicitors from our panel offer are:

  • Connecting you with psychiatrists or therapists.
  • Arranging the best compensation settlement for you.
  • Assisting with evidence.
  • Communicating with all parties involved.
  • Ensuring you have the highest chance of receiving compensation.

No Win No Fee

In addition to the above services, all solicitors from our panel accept claims via a Conditional Fee Agreement, a type No Win No Fee arrangement. This way of claiming is ideal, as you don’t pay solicitors’ fees upfront or as the claim is ongoing. Instead:

  • You pay solicitor fees only if your claim succeeds. This is called a success fee.
  • Your success fee will be deducted from your compensation and has a legal maximum percentage of 25%.

Contact Data Breach Claims’ Advisors

Being awarded compensation for the financial loss due to data breach you have suffered could be life-changing. It could help you get back on track following a compromise of your personal data.

It’s always free to have an initial consultation with our advisors using the contact details below:

Solicitor talking to client about financial loss due to data breach via laptop.

Learn More

Find out key information regarding data breaches with our guides below.

The links below will also be helpful when researching data breaches.

Thank you for reading our guide about whether you can claim compensation for financial loss due to a data breach. Please don’t hesitate to get in contact and see if you could claim.