Damages Required for Data Breach Lawsuit

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Can consumers file lawsuits for ID theft or data breach?

Data breaches are increasingly common.  Can consumers file a lawsuit for damages caused by a data breach or identity theft?

The real question is: will consumers be compensated because their personal information was exposed in a data breach?

Until recently the answer has been no. Consumers have not been able to show they have been financially harmed by a data breach.Even if damages can be proven, plaintiffs have failed to find evidence of damages linked to a specific company data breach.

Trial attorneys won’t find it difficult to link companies to a data breach when consumer information is found on recycled hard drives

The tide might be turning in favor of consumers.  Showing actual damages caused from a company’s data breach may no longer be a hurdle to to compensation. Some federal judges in California believe consumers may have been injured by the mere fact that their identity was stolen.  Injury Key Issue in Data Breach

Has the data breach caused damages to the consumer?

Company Arguments

  • Unless the hacker uses the consumers’ identity for financial gain the consumer has not been damaged
  • Fraudulent use of a consumer’s identity cannot be linked to a specific company data breach

Consumer Arguments

  • Loss of personal information is in itself actual damage
  • Fraudulent use of identity is imminent
  • Time and effort required to monitor credit reports

Potential losses to companies involved in a data breach?

Initial lawyers fees and document discover alone can cost companies millions of dollars. For example:  Target data breach: $10 million settlement ranging from $40 to $5,000 per customer. This dollar figure does not include lawyers fees which could easily double the amount.

The next wave of data breaches and identity theft

We believe lost, stolen, sold or donated hard drives will advance the next wave of data breaches. When companies dispose of IT equipment and fail to physically shred hard drives first, they risk the potential of a data breach and identity theft.

Trial attorneys won’t find it difficult to link companies to a data breach when consumer information is found on recycled hard drives

Secure Data Destruction Reduces Data Breach Potential

E-Waste Security provides digital data destruction for Fortune 500 companies, governmental organizations and small business nationwide. Our onsite hard drive shredding service helps companies protect consumer information during the IT decommissioning process. E-Waste Security is NAID AAA Certified for onsite hard drive destruction.

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