If there’s a big data breach, the class action lawyers will start nipping like a bunch of hungry crocodiles. Upwards of forty separate lawsuits were filed against Target after its data breach, and one was filed the day after the breach became public knowledge.
The law, however, has thus far been far from kind to plaintiffs in data breaches. Most courts dismiss claims for lack of harm. I have written extensively about harm in a series of posts on this blog, and I have chided courts for failing to recognize harm when they should.
Recently, hackers from China stole 4.5 million records of patients from a hospital chain in Tennessee. Do you think that’s big? As a Bloomberg article notes, however,” they haven’t come close to entering the ranks of the biggest breaches of all time. In fact, they haven’t even cracked the top 10.”
There seems to be a surge in data security attacks lately. First came news of the Target attack. Then Neiman Marcus. Then the U.S Courts. Then Michael’s. Here are four points to consider about data security:
1. Beware of fraudsters engaging in post-breach fraud.
After the Target breach, fraudsters sent out fake emails purporting to be from Target about the breach and trying to trick people into providing personal data. It can be hard to distinguish the real email from an organization having a data breach from a fake one by fraudsters. People are more likely to fall prey to a phishing scheme because they are anxious and want to take steps to protect themselves. Post-breach trickery is now a growing technique of fraudsters, and people must be educated about it and be on guard.