Table of Contents
In Short
- UK GDPR and other laws require businesses to protect personal data and respond quickly to cyber attacks.
- Not all breaches must be reported, but serious ones must be notified to the ICO within 72 hours.
- Having a cyber strategy and response plan helps reduce risk, meet legal duties, and protect your business.
Tips for Businesses
Assess your data risks, secure your systems, and train your staff regularly. Create a response plan and know when to report a breach. If a cyber attack occurs, act quickly; contain the issue, notify your insurer and legal adviser, and record your actions. Legal advice early on can prevent bigger problems later.
Cyber attacks are among UK businesses’ most serious operational risks today, especially as cybercriminals become increasingly sophisticated. Whether you run a small firm or a large organisation, your systems, operations, and personal data are vulnerable to an attack. A successful attack can cause lasting harm, for example, disrupting day-to-day business, damaging your reputation, and exposing you to serious legal and financial consequences. If you do not actively prevent and respond to these risks, you may breach your legal obligations under data protection and other laws and commercial contracts. This article explores the legal risks that can arise from a cyber attack (with a focus on UK GDPR), some practical measures to reduce risk, and what your business must do if personal data is compromised following a cyber attack.
Why Do You Need a Cyber Security Strategy?
Various laws set out rules regarding security issues, including the UK GDPR, the Data Protection Act 2018, the NIS Regulations, and potentially sector-specific rules.
If your business handles personal data, you must take steps to keep that data secure. The UK GDPR requires you to implement technical and organisational measures appropriate to the level of risk. You must also demonstrate how you meet these duties through documented policies, up-to-date training, risk assessments, and internal procedures.
The UK GDPR does not set out a checklist of required security measures. Instead, it requires businesses to apply a level of protection appropriate to the nature of the personal data and the risk to individuals. This is a risk-based approach.
Security Measures
To determine what security measures are suitable, you should consider several factors, for example, the cost and complexity of implementation, the types of systems and security already in place, the nature of the personal data involved, and the potential harm if that data is lost or misused. For example, stronger measures may be needed when you process financial data, health information, or special category information.
If you operate in a regulated sector, additional rules may apply. The Network and Information Systems Regulations 2018 apply to certain operators of essential services and relevant digital service providers, who must report certain incidents. Similarly, FCA-regulated firms must report material cyber incidents under FCA rules. Other laws may also create reporting duties, depending on your industry and the nature of the incident.
Cybersecurity obligations may also be found in your contracts. Many commercial agreements now include strict security standards and breach notification requirements. A cyber incident could trigger disputes or claims, particularly if your failure to act causes damage.
Reducing Your Business’ Exposure to Cyber Risk
Reducing your risk starts with understanding your weak spots. You should assess how your business collects and stores data, what software and systems you rely on, and where vulnerabilities exist. This includes evaluating your own internal practices and those of your suppliers. Once you have a clear picture, you can implement appropriate controls.
You should formalise your approach through a written information security policy and a detailed incident response plan. These tools help ensure your business can respond effectively in an emergency, contain the breach, and meet its legal duties under the UK GDPR.
Continue reading this article below the formWhat to Do if a Cyber Attack Leads to a Data Breach
If a cyber attack results in the unauthorised access, loss, or corruption of personal data, you must act quickly. Your first step should be to assess whether the incident poses a risk to individuals. If it does, you must report the breach to the ICO within 72 hours of becoming aware. If there is a high risk to individuals’ rights and freedoms, you must also inform them directly without undue delay.
Before doing anything else, you should notify your insurer. Most cyber insurance policies require early notification to preserve coverage. Prompt contact can also connect you to technical and legal experts, support your response, and ensure the claims process starts without delay.
This factsheet sets out how your business can become GDPR compliant.
Under the UK GDPR and the Data Protection Act 2018, you must report notifiable breaches to the ICO and inform individuals where necessary. The ICO can also advise you on managing the breach and help investigate it.
If your business falls within the scope of the NIS Regulations, you must notify the relevant competent authority if the incident meets the reporting threshold. Financial services businesses must follow specific procedures for reporting certain incidents. You may also have contractual duties to notify third parties such as clients, partners, or suppliers.
Documentation
Regardless of your reporting duties, it is essential to document what happened, how your business responded, and what steps you are taking to prevent future incidents. Regulators expect this level of accountability. You should also review your contracts, test your systems, and strengthen internal practices to prevent future issues.
The fallout from a cyber attack can quickly escalate. You may need to simultaneously manage regulatory investigations, contractual disputes, customer communications, and reputational concerns. If you delay or respond incorrectly, your risk exposure can significantly increase. Taking legal advice early can help you navigate these issues correctly before they escalate.
Key Takeaways
Cyber attacks create legal and operational risks. Depending on their sector, businesses have clear duties under laws like the UK GDPR, the NIS Regulations, and potentially other laws. If a cyber attack results in a data breach, your company may be required to report the incident, notify affected individuals, and take remedial action. A strong incident response plan and a clear understanding of your obligations will help you manage the outcome and protect your business in the future.
If you need help with UK GDPR compliance, our experienced data, privacy and IT lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
A data breach is an incident that leads to unauthorised access, loss, destruction, alteration, or disclosure of personal data. It can be caused by various issues, including cyber-attacks, human error, or device theft.
You only need to report a breach to the Information Commissioner’s Office if it is likely to risk individuals’ rights and freedoms. Where the risk is low and you deem it not to be reportable, you must still document the breach and your decision.
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