Data breach 'could lead to lawsuits'

2009-07-11

A data breach can lead to a firm having to cope with potential liability as well as possible customer lawsuits, it has been suggested.

These issues could be on top of leaking sensitive official business and client data, Zander Insurance Group claimed.

It asserted that organisations are just as under threat from identity theft as individuals are in a depressed economy and firms have to cope with more than the possible loss of finances and an damaged credit report.

Jeffrey Zander from the insurance group said that any company can be a victim of a data breach or identity theft no matter how big they are.

"By insuring themselves against a possible data breach, a business is protecting itself and its clients should such an event occur. It's almost as important as getting personal life insurance," he said.

A recent PGP Corporation-commissioned poll, carried out by the Ponemon Institute, revealed that seven in ten (70 per cent) of UK organisations have been hit by one or more data breach in the last 12 months.

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