Third-party data breach claims are filed against vendors that have failed to comply with data protection laws, resulting in psychological or financial harm. Compensation payouts can cover the immediate and long-term effects of such harm. If you have suffered because of a data breach, one of the expert solicitors from our panel is here to support you. They have the necessary skills and knowledge to navigate you through the third-party data breach claims process to help you gain compensation to get your life back on track.
Key Takeaways
- Some organisations hire third parties to control data on their behalf. When doing so, they must comply with data protection laws to keep the data secure.
- Third-party vendors may be in breach of this if they fail to install security software, give unauthorised access to personal data or make human errors.
- If a third-party data breach occurs, your personal data, such as your name or address or special category information, such as your religious beliefs, may be compromised.
- You may be eligible for a compensation payout if you suffered psychological harm or incurred financial losses as a direct result of the third-party data breach.
- One of the solicitors from our panel may be able to help you pursue a claim for a third-party data breach on No Win No Fee terms.
Get in touch with our friendly advisors today to have a free consultation to find out whether you are eligible to pursue a third-party data breach claim with one of the excellent solicitors from our panel.
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Jump To A Section
- What Is Third-Party Data?
- What Are The Risks Of Third-Party Data Breach?
- What Is An Example Of A Third-Party Data Breach?
- Who Is Liable In A Third-Party Data Breach?
- Can You Claim Compensation For A Third-Party Data Breach?
- What Compensation Can You Claim For A Third-Party Data Breach?
- Pursuing Data Breach Claims With No Win No Fee Solicitors
- More Information
What Is Third-Party Data?
Third-party data refers to personal information collected by organisations and then transferred to a vendor, such as a cloud service or a marketing agency. This is typically to improve operational efficiency, feedback and business analysis.
Some examples of your data that may be controlled by third-party vendors include:
- Personal data such as your name, address, contact details or national insurance number.
- Special category information, such as your religious and political beliefs or health and genetic data.
All third-party vendors must adhere to data protection laws to ensure the information they hold remains secure. If they fail to comply with these, it often gives rise to cyber attacks and third-party data breaches.
If you were notified that you suffered from a third-party data breach, contact our friendly advisors to discuss your next steps.
What Are The Risks Of Third-Party Data Breach?
The risks of a third-party data breach include psychological harm, financial loss, and reputational damage. Some examples of these include:
- A breach may cause significant emotional distress and lead to stress, anxiety, and PTSD. This can also cause difficulty concentrating or sleep disturbances.
- In cases involving health records or domestic abuse, a data breach can affect the physical safety of those affected. This may mean they have to relocate to new accommodation.
- Financial loss directly resulting from the breach. For example, you may need to pay out of pocket for counselling or have to invest in more comprehensive home security.
- Reputational damage, particularly for the organisations involved in the data breach. This can result in a substantial loss of trust and client alienation. Organisations may also face fines from the Information Commissioner’s Office, an independent body responsible for data protection rights.
- Data breaches involving third-party vendors can disrupt major services, with serious consequences for organisations, clients, and customers.
If you suffered harm as a result of a third party data breach and you have evidence to support this, you may be eligible to claim compensation for this.
Contact our advisors today if you suffered psychological harm or financial losses as a result of a third-party data breach.
What Is An Example Of A Third-Party Data Breach?
An example of a third-party data breach includes a vendor like an IT contractor, cloud provider, or marketing agency failing to protect personal information by not implementing adequate cybersecurity measures or providing sufficient staff training. For example, personal data may be compromised if:
- Your workplace has a third-party vendor that manages payroll data. However, they sent your payslip and employment contract to the incorrect address, giving them unauthorised access to sensitive information and causing you considerable distress.
- A university may have a third-party vendor controlling student admission and loan data. However, they lacked sufficient data security systems in place. As a result, a cyber attack resulted in the disclosure of your personal information. You consequently experience stress and anxiety, and have to pay out of pocket for new home security features.
- A third-party vendor may control patient data and medical records on behalf of a private healthcare company. Due to a lack of staff training, your health records are sent to a different patient, causing you emotional harm and anxiety about your personal security.
Regardless of how you suffered from a third-party data breach, discuss this with our advisors to find out if you are eligible to pursue a claim.
Who Is Liable In A Third-Party Data Breach?
Generally, who is deemed liable in a third-party data breach depends on which organisation failed to protect your personal information in line with data protection legislation. Responsibility can fall on several parties who handled your personal data:
- Data controllers are the original organisations that have primary responsibility for protecting personal data, and can include employers and local government. They may instruct a third-party vendor to process this data on their behalf to improve operational efficiency. Data controllers may be liable in a third-party data breach if they fail to audit the vendor or share more personal information than is necessary.
- Data processors are third-party vendors, such as IT contractors, payroll providers, marketing agencies, or cloud services. If the data processor fails to adhere to data protection laws and compromises your personal information, they may be liable for the data breach. For instance, they might improperly dispose of physical documents, fail to encrypt personal data, or create vulnerabilities by using outdated software.
Under the UK GDPR’s Article 82, joint liability may apply when multiple parties process the same personal data. In such circumstances, this allows you to pursue compensation against the data controller, processor, or both.
Contact our advisors today for help determining who was responsible for your third party data breach.
Can You Claim Compensation For A Third-Party Data Breach?
Yes, you may be eligible to claim compensation for a third party data breach, provided that you were harmed by an organisation’s failure to protect your personal information. However, you must be able to meet the following eligibility criteria.
A Third-Party Organisation Failed To Comply With Data Protection Laws
Data protection legislation is governed by the Data Protection Act 2018 and the UK General Data Protection Regulations. A third party may breach its legal obligations by having inadequate cybersecurity systems in place, allowing unauthorised access to databases, or failing to provide sufficient training to safeguard physical documents or protect against phishing attacks.
Your Personal Data Was Compromised In The Data Breach
The breach must have directly impacted your personal data. Depending on the third party, this may include contact information or more personal data, such as biometrics and health records.
The Data Breach Caused You Psychological Harm, Financial Losses, Or Both
Finally, you must have been harmed as a result of the third party data breach, whether mentally or financially (or both). Data breaches often take a lasting emotional toll on those impacted by them, leading to conditions like post-traumatic stress disorder (PTSD). They also frequently lead to financial losses, ranging from therapy bills to the cost of investing in more robust home security.
Get in touch with our advisors for free today to find out if you can claim compensation for a third-party data breach.
What Compensation Can You Claim For A Third-Party Data Breach?
The compensation you can claim for a third-party data breach will depend on the extent to which you have been harmed psychologically and financially. Data breaches can result in severe, lasting harm to mental health and quality of life, and your settlement may be tailored to reflect the impact you have experienced.
In data breach claims, psychological harm is termed non-material damage. To value this fairly, your solicitor may refer to the Judicial College Guidelines (JCG), a document often used by legal professionals. This is because the JCG lists suggested brackets of compensation for many forms of harm, including entries for psychological damage.
The table below provides several brackets as defined by the JCG, except for the top figure. As these figures are suggestive, they are not guaranteed and are not representative of how much compensation you might be awarded.
| Psychological Harm | Compensation | Notes |
|---|---|---|
| Multiple Severe Psychological and Significant Financial Losses | Up to £250,000 plus | For multiple psychological injuries that are serious and significant financial losses such as security costs, lost wages or therapy payments. |
| Severe Psychiatric Damage | £66,920 to £141,240 | Factors considered include the person’s ability to cope with life, work and relationships, their prognosis and success of treatment and future vulnerability. |
| Moderately Severe Psychiatric Damage | £23,270 to £66,920 | Factors considered as the same as those listed above however, the prognosis is more optimistic. The majority of awards fall central to these brackets. |
| Moderate Psychiatric Damage | £7,150 to £23,270 | Again, the factors considered are the same as those above. However, there is a much more optimistic prognosis and awards often fall within the middle of the brackets. |
| Less Severe Psychiatric Damage | £1,880 to £7,150 | These brackets depend on the amount of time spent suffering from psychological harm and how the individuals daily activities and sleep were affected. |
| Severe PTSD | £73,050 to £122,850 | Suggested if the individual suffers the permanent effects of PTSD preventing them from working or functioning as they would at a pre-trauma level. |
| Moderately Severe PTSD | £28,250 to £73,050 | Suggested if the prognosis is better than the above category and there is some recovery with professional help. The majority of awards are between £35,100 and £45,300. |
| Moderate PTSD | £9,980 to £28,250 | Suggested if the individual largely recovers and any continuing symptoms are not grossly disabling. |
| Less Severe PTSD | £4,820 to £9,980 | Suggested if a large recovery is made within 1-2 years and the individual has minor continuing symptoms. |
Can Third-Party Data Breach Claims Compensate Material Damages?
Yes, third-party data breach claims may compensate for material damage. This is the term used for the financial losses you have incurred as a result of the data breach. The monetary losses associated with third-party data breach claims include costs related to:
- Payments for private mental health services, such as counselling.
- Additional home security, such as CCTV, ring doorbells, or motion detectors.
- Lost wages or work benefits, including future impacts on earnings.
- Home relocation, if you were required to move due to the breach.
If you incurred financial losses as a result of a third party data breach, you must provide evidence of the material damage. This can include bank statements, invoices for security installations, and wage slips.
For further guidance on how compensation is calculated in data breach claims, please contact our advisors today for free, confidential assistance.
We Can Help With Your Claim
Our team of specialist advisors are ready to assist you with your data breach claim
Pursuing Data Breach Claims With No Win No Fee Solicitors
With Data Breach Claims, you can pursue compensation with one of the fully qualified and experienced No Win No Fee solicitors from our panel. They work under a Conditional Fee Agreement (CFA), which means you will be able to benefit from their legal expertise, compassionate representation, and insightful support without paying any upfront service fees.
Under a CFA, your solicitor will also not charge any ongoing service fees, and these are also not payable if a case is lost. They will take a small success fee from your compensation if your third-party data breach claim wins. However, this is set as a legally capped percentage, meaning the bulk of the compensation goes home to you.
How Our Panel Supports Clients
There is no legal obligation to seek legal representation. However, our panel have the legal skills necessary to help you navigate the claims process and provide you with the support you deserve. For example, they can walk you through the key steps you will need to take to build a strong case, such as:
- Identifying your data involved in the third-party breach. This may include your name, address, bank account details or religious beliefs.
- Gathering evidence to support your claim, including your notification letter, bank statements, psychological reports, and relevant correspondence.
- Contact the third party responsible for the breach and send information such as what data was compromised, how it was breached, and how they are responding.
- Reporting the breach to the ICO within 3 months following the third party’s last meaningful response to your communications. They may investigate the data breach, which can be used as evidence to support your claim.
- Determining your harm, such as anxiety, sleep disturbances or stress and the financial losses you incurred as a result of the data breach, such as security costs.
Finally, you generally have only 6 years to pursue a claim, so it’s recommended to reach out as soon as possible. You can also learn more about this by reading our time limit guide. It is always worth contacting our advisory team, as they are available 24/7 and can outline exactly how our panel of solicitors can support their clients.
Contact Data Breach Claims To Begin
Contact our helpful advisors at Data Breach Claims to make a third party data breach claim with a specialist solicitor from our panel by:
- Calling on 020 8050 6279 for a free consultation
- Submitting your details online
- Sending questions via a free, private and confidential live chat
Our advisors are available 24 hours a day, so please reach out at a time that suits you best.
More Information
If you would like more information about data breach claims, please read the guides linked below.
- Read our data breach case studies
- Here are examples of data breach claims
- Answers to our data breach frequently asked questions
References:
- Access mental health services, NHS.UK
- Learn about personal data breaches, ICO.ORG.UK
- Information about data consent, ICO.ORG.UK
Thank you for reading our guide which explains the third-party data breach claims process.