With an increasing number of security breaches hitting the headlines, there is, unsurprisingly, a growing awareness amongst regulators and the public alike of data security issues."/>
to help enterprise security across Europe
The resource centre for busy senior executives seeking the latest insights into IT Compliance & Privacy issues for major organizations
sarbaines oxley ofcom communications regulator
Latest Resources      data protection register
compliance resources privacy resource center

Breaking Global News
Global Compliance and Privacy News
- Breaking News, updated every 30 minutes
•   Compliance, Privacy and Security
•  Money Laundering
•  Phishing
•  Regulatory Issues
•  SOX, Basel 2, MiFID

You Tell Us:

We use SSL Technology for web data entry points:

What is SSL?

Are Smartphones Endangering Security? - Wick Hill
Dealing with Internet Security Threats - Ian Kilpatrick
How the New EU Rules on Data Export Affect Companies in and Outside the EU - Thomas Helbing
Farmers' Data Leak Highlights Old Technology Use - Wick Hill
Saving Money with SFTP - Wick Hill
UK Information Commissioner targets firm selling vetting data - Eversheds e80
12 Key Steps to Internet Security - Wick Hill
Telephone Monitoring Legality in the UK - Dechert
Firewall or UTM - Wick Hill
UK Information Commissioner demands mobile device encryption - Eversheds e80
Data loss - liability, reputation and mitigation of risk - Eversheds e80
Phorm, Webwise and OIX - BCS Security Forum
The challenges of PCI DSS compliance - Thales, Russell Fewing
"Quality" Data Vendor Spams us! Editor astounded!
National Gateway Security Survey 2008 - Wick Hill
Unified Threat Management - Watchguard Technologies

news archives
0 | 1 | 2 | 3 | 4 | 5 |
6 | 7 | 8 | 9 | 10 | 11 |
12 | 13
[What is this?]

Industry Blogs
Tim Berners Lee's Blog
Tim Callan's SSL Blog
Davis Wright Tremaine's Privacy & Security Law Blog
Emergent Chaos Blog
Michael Farnum's Blog
Phillip Hallam-Baker's Blog - The dotFuture Manifesto: Internet Crime, Web Services, Philosophy
Stuart King's Security and Risk Management Blog
David Lacey's IT Security Blog
Metasploit Official Blog
Jeff Pettorino's Security Convergence Blog
Jeff Richards's Demand Insights Blog
David Rowe's Risk ManagementBlog
Bruce Schneier's Security Blog
Larry Seltzer's Security Weblog
Mike Spinney's Private Communications Blog
Richard Steinnon's Threat Chaos Blog
The TechWeb Blog
Tim Trent's Marketing by Permission Blog
Rebecca Wong 's DP Thinker Blog

23 February Newsletter
Newsletter Archives are located in "News"

Industry Update
Internet Security Intelligence Briefing - November 2005
Find out the latest trends in e-commerce, web usage & the latest threats from adware/Spyware

Phorm, Webwise and OIX
- BCS Security Forum

'The Any Era has Arrived, and Everyione has Noticed' - Stratton Sclavos - VeriSign
Identity Security - Time to Share
Malicious code threats - iDefense
Public Alerts - updated as they happen from Stopbadware.org
Public Alerts - updated as they happen from Websense
Public Advisories - updated as they happen, from iDefense
Phoraging - Privacy invasion through the Semantic web: a special report by Mike Davies of VeriSign

Privacy Laws & Business International E-news, Issue 57
Privacy Laws & Business UNited Kingdom E-news, Issue 60

Security Reviews
February 2007 - VeriSign Security Review
The security review archive is here

Case Studies
Finance Industry
Case Study Example

A case study on a Finance industry company.

White Papers
VeriSign® Intelligent Infrastructure for Security
VeriSign® Intelligent Infrastructure: An Overview
Identity Protection Fraud Detection Service - description of the service
Life of a Threat - Video on Threat Management Lifecycle
Optimizing Enterprise Information Security Compliance - Dealing with all the audits
For a full list of all whitepapers, visit our Whitepaper library

Legal Notices
Privacy Policy
Terms of use

basel 2 sarbanes oxley
data controller notification binding corporate rules BCR data transfer third countries third part data transfer basel 2 regualtor regulation regulate FSA banking network security RSA encryptin algorithm Bits sacked bank staff
Blogs compliance Reports compliancy Legislation Data Protection Case Studies data privacy White Papers data protection act News information commissioner Events security standards Links information security iDefense
Retail Solutions

Data loss - liability, reputation and mitigation of risk

compliance and privacy

Current News Updates

Data loss - liability, reputation and mitigation of risk

With an increasing number of security breaches hitting the headlines, there is, unsurprisingly, a growing awareness amongst regulators and the public alike of data security issues.

The risks to businesses of being involved in a data loss incident are high. Criminal sanctions under the Data Protection Act are well established, but other regulators like the Financial Services Authority (FSA) are also willing to flex their enforcement muscles. In the last three years, the FSA has levied substantial fines against several of its members for security breaches.

Bad publicity is another potentially lethal sanction. A recent study by Ponemon showed that 31 per cent of respondents terminated their relationship with an organisation on receiving notification of a breach of data security.

Finally, where third party suppliers are dealing with data, security breaches can lead to termination of their contract and liability for losses incurred.

Mitigating legal risk

Arrangements under which third party suppliers handle customer data should provide for clear lines of responsibility. It is ultimately the data controller's responsibility to ensure that its suppliers treat data carefully, but the supplier will also require their assistance to minimise damage if a breach should occur.

The services contract should:

  • clearly spell out each party's responsibilities - security measures should be specific and clearly identified (ie within a security schedule) and should be achievable
  • set out some basic controls in the event of a data loss or breach - the parties should co-operate to prevent further damage
  • have indemnity and termination provisions, which specifically address the issue and the consequences of data loss on the supplier's part
  • contain specific provisions for press statements to be mutually agreed so that neither party can depict the other as the scapegoat.

Practical steps

All businesses should have robust data security measures. In particular:

  • human and operational controls - to ensure effective training for all staff who handle the customer data so staff clearly understand what their responsibilities are. (This is particularly important where a third party supplier is handling the data of individuals on behalf of different customers, who may have different policies and needs.)
  • technical measures - which must be robust and backed up by an audit trail to demonstrate that they are tested and effective for the specific data and contractual requirements. (For example, protective measures such as access control (ie passwords), firewalls and encryption where appropriate should be fit for purpose.)

Reputational damage

Instant and intense media scrutiny can be expected in the event of data loss so businesses should plan in advance how the situation will be handled.

  • You will need to establish the exact facts very quickly and present a coherent explanation showing that you are in control.
  • If there is doubt as to what has happened, you are entitled to prevent the media pointing the finger until the facts are clear.
  • Be careful about blaming a third party - check whether you are contractually entitled to do so and consider the risk should you be wrong.

If it is clearly your fault, a prompt public apology combined with a clear explanation as to how you will mitigate any damage caused may be the most effective way of defusing the situation.

This article is reproduced from Eversheds e80 service. You can find out more about Eversheds e80 and search the Eversheds e80 archive at www.eversheds80.com. e80 is provided by Eversheds for information purposes only and should not be regarded as a substitute for taking legal advice. It is reproduced here by kind permission of and is © Eversheds.


This site is independent of all its sources
The contents of the site are sourced from across the industry. All copyrights are acknowledged.