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Victims of a data breach are entitled to compensation — not only from the hacker, but often also from the negligent organization that failed to adequately protect the data. The amounts are usually modest (a former student, for example, received 300 euros), but for organizations, fines from the Dutch Data Protection Authority are added to this. Below, you can read when there is a right to compensation and how the amount is determined.
Right to compensation in the event of a data breach
Thousands of data breaches occur annually, ranging from innocent errors to large-scale hacks. Victims are entitled to compensation, for example from the hacker. However, because the hacker's identity is often difficult to ascertain, it may be more advantageous to hold the affected organization liable. After all, under the GDPR, organizations have far-reaching obligations to protect personal data. A condition, however, is that there must be negligence, for example because the organization did not do enough to prevent a hack.
In addition to damage claims, organizations can also receive fines from the Dutch Data Protection Authority in the event of a data breach.
How much is the compensation for a data breach?
Compensation under the GDPR is generally not high; in the student's case, it amounted to 300 euros. Factors playing a role in determining the compensation include:
- the severity of the leak — sensitive data (identity documents, medical data) outweigh less sensitive data;
- the impact on the individual, such as psychological damage or the need to apply for new identification documents;
- the duration of the data breach;
- the general availability of the leaked data.
Prevention is important
Preventing data breaches is crucial. Take strict data security measures, such as:
- regular security audits;
- strong software and encryption;
- training of staff on cybersecurity and phishing;
- requirements regarding passwords and the regular updating of software.
TODO_VERIFY: the figures mentioned in the original article (such as an average of 57 data breaches per day in 2022) are snapshots — check current figures with the Dutch Data Protection Authority.
Frequently Asked Questions
Can I hold an organization liable after a data breach?
Yes, if the organization has been negligent in protecting your data. Under the GDPR, organizations have far-reaching security obligations.
How much compensation will I receive in the event of a data breach?
Usually a modest amount. The amount depends on the severity of the leak, the impact on you, the duration, and the availability of the data.
Should I contact the hacker or the organization?
A hacker is often difficult to trace. Therefore, it is often more practical to hold the negligent organization liable.
What risks does my company face in the event of a data breach?
In addition to damage claims from data subjects, there are also fines from the Dutch Data Protection Authority. Good security and proper handling limit those risks.
Need help with a damage claim after a data breach?
We support both victims and companies in the event of data breaches, including with the recovery or disputing of damage claims, and help you get your security in order.
View our expertise in privacy and data protection or schedule a no-obligation consultation.
