Defending The Digital Workplace

An ebusinesscounsel.com publication

Litigation Costs and Data Breaches

In the preceding post, Preventing Data Breaches – On the Cheap, the cost of responding to data breaches was briefly referenced as a reason for companies to invest resources to prevent such breaches. The article, Watch out! Privacy litigation damages becoming more viable, reports that as more data breaches find their way into courts that these costs will rise. For example, one case cited in this article, Department of Veterans Affairs Data Theft Litigation, (D. D.C. Jan. 27, 2009), saw the Department of Veterans Affairs agree to pay $20 million to set up a fund for to pay the expenses of anyone directly affected by the breach, which includes credit-monitoring expenses and mental health costs for those who may have suffered extreme emotional distress as a result of the breach. Click here for Information Week’s article, Cost Of Data Breaches Keeps Going Up, for more (bad) news regarding increasing costs for responding to data breaches.

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Written by Jason Shinn

February 3, 2009 at 11:02 pm

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