GDPR data protection fines

GDPR- the General Data Protection Regulations and fines are less than 17 months away warns Cyber139. Happy New Year!

GDPR- the General Data Protection Regulations are less than 17 months away warns Cyber139

A two tiered system of fines will apply. Breaches of some provisions by businesses, which law makers have deemed to be most important for data protection, could lead to fines of up to €20 million or 4% of global annual turnover for the preceding financial year, whichever is the greater, being levied by data watchdogs.

For other breaches, the authorities could impose fines on companies of up to €10 million or 2% of global annual turnover, whichever is greater.

Hoping that BREXIT might help you? Wrong- speaking in parliament in the week before Christmas, UK digital minister Matt Hancock again confirmed that the GDPR “will become directly applicable in UK law on 25 May 2018”.

Data controllers could face more severe regulatory fines than data processors for failing to keep personal data appropriately secure under the new General Data Protection Regulation

One of the many changes that the new Regulation will deliver when it comes into force on 25 May 2018 is a new statutory obligation on data security that data processors must observe above and beyond contractual duties agreed with data controller customers.

Under current EU data protection rules service providers that process personal data on behalf of other businesses cannot be held directly liable to individuals for a breach of data security. If data processors are at fault for data breaches then it is the data controller who contracted with them whose neck is on the block for any non compliance with data protection laws, although the data processor could be liable to the data controller under their contract.

The Regulation addresses this anomaly but makes a distinction between the maximum fine data protection authorities will be able to levy against data controllers compared to data processors for failings on data security.

The relevant provisions on data security are contained under Articles 5 and 32 of the Regulation.

Article 5 sets out basic rules on personal data processing which only apply to data controllers, considered to be fundamental to data protection. One of those rules requires data controllers to ensure that personal data is “processed in a manner that ensures appropriate security of the personal data, including protection against unauthorised or unlawful processing and against accidental loss, destruction or damage, using appropriate technical or organisational measures”.

According to the Article 83 provisions of the Regulation on administrative fines, where data controllers breach that Article 5 requirement they can be served with the highest possible fine that data protection authorities will be able to issue under the reformed framework.

In contrast if data processors breach their statutory data security obligations, set out under Article 32, which requires them to “implement appropriate technical and organisational measures to ensure a level of security appropriate to the risk” of their personal data processing, then the most they could be fined is up to €10m or 2% of global annual turnover.

Data controllers are also subject to the Article 32 obligations. It therefore appears open to national data protection authorities to fine data controllers for any data security failings under Article 5 or Article 32. Their choice in those circumstances would impact on the severity of the fines they could issue.

Whether security measures are appropriate in each instance will depend on “the state of the art, the costs of implementation and the nature, scope, context and purposes of processing as well as the risk of varying likelihood and severity for the rights and freedoms of natural persons”, according to the Regulation.

Beyond the imposition of administrative fines for data security breaches, the Regulation will also introduce an updated right for data subjects to claim compensation for damages they suffer from such incidents.

A data controller or data processor could be sued for compensation as well as being exposed to the administrative fines – being fined will not shield it from compensation claims, and vice versa.

The revised right will allow data subjects to pursue either data controllers or data processors for all of the compensation owed to them for the damage they have suffered from a data breach, although a processor will only be liable for damage caused by processing where it has not complied with any part of the Regulation that applies to them or if it has “acted outside or contrary to lawful instructions of the controller”.

Data controllers pursued for damages will be able to claim back all or some of the money they pay out from their data processor if the data processor was  in fact responsible, wholly or in part, for the breach.

Equally, data processors will have the same right to claim back money from data controllers, or indeed other data processors involved, whose fault caused or contributed to the damage, if the data subject pursues the data processor for the full compensation pay-out.

So if you want to save yourself stress, money and a damaged reputation from a cyber incident please ring us now on 01242 521967 or email [email protected] or complete the form on our contact page NOWContact Cyber 139

Cyber 139 wishes you a secure and prosperous New Year

Cyber 139 wishes you a secure and prosperous New Year for 2017.

Cheltenham based cyber security and protection firm Cyber 139 wishes you a secure and prosperous New Year for 2017.

Cheltenham based cyber security and protection firm Cyber 139 wishes you a secure and prosperous New Year for 2017.

Overall 24% of ALL businesses surveyed in 2016 had had one or more cyber security breaches in the past 12 months- so please don’t let you be a victim in 2017.

So if you want to save yourself stress, money and a damaged reputation from a cyber incident please ring us now on 01242 521967 or email [email protected] or complete the form on our contact page NOWContact Cyber 139

Cyber crime costs small businesses the most

New research has found that cyber crime is disproportionately effecting small businesses the most.

New research has found that cyber crime is disproportinately effecting small businesses the most.

The Federation of Small Businesses (FSB) has found that small firms are unfairly carrying the cost of cyber crime in an increasingly vulnerable digital economy.

The report Cyber Crime: How to protect small firms in the digital economy suggests smaller firms are collectively attacked seven million times per year, costing the UK economy an estimated £5.26 billion.

Despite the vast majority of small firms (93%) taking steps to protect their business from digital threats, two thirds (66%) have been a victim of cyber crime in the last two years. Over that period, those affected have been victims on four occasions on average, costing each business almost £3000 in total.

Cyber crime costs small businesses disproportionately more than big businesses when adjusted for organisational size.

Currently the responsibility largely falls on small businesses to protect themselves. FSB is calling for more support to be given to those smaller firms least able to bear the burden of the increasing global cyber threat.

Almost all (99%) of the UK’s 5.4 million small firms rate the internet as being highly important to their business, with two in three (66%) offering, or planning to offer, goods and services online. Without intervention, the growing sophistication of cyber attacks could stifle small business growth and in the worst cases close them down.

Mike Cherry, FSB National Chairman, said: “The digital economy is vital to small businesses – presenting a huge opportunity to reach new markets and customers – but these benefits are matched by the risk of opportunities for criminals to attack businesses.

“Small firms take their cyber security responsibility very seriously but often they are the least able to bear the cost of doing so. Smaller businesses have limited resources, time and expertise to deal with ever-evolving and increasing digital attacks. We’re calling on Government, larger businesses, individuals and providers to take part in a joint effort to tackle cyber crime and improve business resilience.”

The types of cyber crime most commonly affecting small businesses are phishing emails (49%), spear phishing emails (37%), and malware attacks (29%).

Small firms are also concerned about hacking and fraud when the card is not present, with the average information breach setting them back 2.2 days.

To combat this, four in five small firms (80%) use computer securing software, and well over half (53%) perform regular updates of their IT systems.

The FSB report also found room for small firms to improve security.

Currently just a quarter of smaller businesses (24%) have a strict password policy, four per cent have a written plan of what to do if attacked online, and just two per cent have a recognised security standard such as ISO27001 or the Government’s Cyber Essentials scheme.

Mike Cherry added: “Small firms are understandably focussed on building their businesses and creating the jobs which drive economic growth. The vulnerabilities of the digital world affects everyone and the responsibility for improving resilience should not be left to the group with least resource to do something about it.