In recent years, plaintiffs have been able to claim the following damages in their data breach lawsuits.
Risk of Injury
Data breach victims can claim compensation for the heightened risk of injury. Such a claim might have legal standing even if the injury has not yet occurred. In 2021, the US Court of Appeals for the Second Circuit ruled that data breach victims can still sue even if they have not yet experienced the impacts of data breach. The logic here is that data breach increases the risk of injury, and there is no point in waiting for the injury to happen to confirm this.
Misuse of Data
Most cyber criminals who infiltrate networks and databases do not usually do that without reason. Rather, they intend to use the information to commit crimes, such as credit card theft, fraudulent tax filing, etc. Such actions are considered misuse of data, which is also a valid claim.
Depreciated Personal Information
Your personal information is valuable. Otherwise, criminals would not spend hours trying to infiltrate networks and databases to access this information. However, your private information is only valuable if it stays private.
Your social security number is a good example. One of the reasons it is considered valuable information is because it is private and can be used to reveal so much about you. Therefore, when this information lands in the wrong hands, it loses its value.
Information that is easily available is not as valuable. For example, your social security number being all over the dark web means you may not even be able to get a loan unless you clear your name with the relevant agencies. That is how invaluable your information can be within a few hours.
Failure to Meet Expectations
When you submit your personal and confidential information to another party, such as a business, you expect them to protect it. For instance, when you enter your credit card information while shopping online, you expect the online store to keep the information safe.
But the sad truth is that some companies or entities do not have adequate security measures to protect your information. They will not tell you this but will be happy to conduct business with you.
If you expected the other party to protect your private information, but they failed to do so, you may have a failure to honor expectations claim.
Special Damages
Also known as consequential damages, these damages seek compensation for harm caused by the defendant. Again, it is important to note that the defendant does not have to be directly liable for the injuries. Rather, they may still be required to pay consequential damages if their actions played a part in the plaintiff’s injuries.
Let’s look at a data breach incident as an example. Suppose an online store loses its login credentials to hackers who sell the information on the dark web. The buyer then uses the login credentials to access your online account and buy products without your knowledge. They also use the credentials to access your credit card information, address, phone number, email, etc., and commit additional crimes.
If you hire a private investigator to locate the individual who has been misusing your information, you may be able to sue the online store for data breach and claim consequential damages. In this context, you can claim your expenses, time, effort, and the services you paid for, such as private investigation, credit monitoring, etc.
Emotional Distress
Earlier, we mentioned that data breach could cause you or your family emotional distress. It is even worse if your information has been used to commit crimes, secure big loans, etc. Many data breach victims have sunk into deep depression due to such crimes. Others spend a lot of money on antidepressants, therapy, and counseling, hoping to recover from the shock of losing their personal information to malicious individuals.