With incidents of data breaches and other data protection issues on the rise, researchers are looking into just how much we can expect data protection disputes to rise in the next five years. This is the focus of a recent research study conducted by the School of International Arbitration at Queen Mary University of London in coordination with Pinsent Masons law firm.
The study found that disputes resulting from data and security breaches is expected to rise by as much as 191% in the next five years alone. 67% of respondents indicated that data breaches caused by employees was very common. This is compared to 70% that stated third parties are at least somewhat commonly responsible.
The study, which was conducted with 340 legal experts from around the world, also found that data protection disputes are also expected to increase as much as 104%.
Data protection issues currently make up 13% of all telecoms, media and technology (TMT) disputes. This increase would have a huge impact on IT companies’ bottom lines.
The importance of substantial data protection
For any company that deals with data of a significant and/or personal nature, data security and the legal costs that come with it are a big deal. When a large corporation such as a bank or a retail giant suffers a breach of its data stores, thousands and even millions of people are affected.
Information such as a person’s name, email address, financial information, health records, and passwords can be bought and sold on the black market quickly after it has been illegally obtained. This information can lead to a cascade of problems for the individual, including identity theft and financial ruin.
This became shockingly true for the 30 million people that used the popular infidelity site, Ashley Madison. A data breach on its servers had fallout that went well beyond simple identity theft. News of the breach, and the resulting data dump that outed thousands of government employees and officials in the United States alone, resulted in suicides and countless incidents of extortion.
For Avid Dating Life and Avid Life Media, the companies behind Ashley Madison, this breach could result in hundreds of millions of dollars in damages from class-action lawsuits being filed in several countries.
The challenge of protecting IoT data
Over the past year, the security of the Internet of Things has been brought into question. The widespread outage of popular websites like Amazon and Twitter that occurred in 2016 happened because IoT devices. These devices transmit and receive sometimes sensitive information, were found susceptible to malicious software injection.
Our home’s security systems, medical devices, and even our cars are becoming full-fledged computers with Internet connections. The type of data they gather and send to the cloud ranges from innocuous status updates to live video streams.
Protecting the IoT is paramount to preserving the security of its users’ data and the financial well being of their creators.