Three Ways that Weak Cybersecurity May Cause Your Company to Fall Foul of the Law

By Danni White - Published on May 7, 2018
Preparing Your Company for Cybersecurity Challenges in 2018

Guest Post by is part of 4Choice Ltd, a UK-based company specializing in price comparison websites.

Cybersecurity isn’t the most glamorous of topics. While tales of hacking might make for great entertainment in shows such as Mr. Robot and movies like The Matrix, dealing with system security is nothing more than a necessary evil for many company owners.

Furthermore, for some businesses, protecting company systems and data is a lot lower down the priority list than it ought to be. Unfortunately, many companies don’t give cybersecurity adequate attention until it’s too late.

Continually swerving information security as an issue is foolhardy at best. Statistics show that over half of companies had their systems compromised last year. Cyberattacks and data breaches are, at the very least, a serious and expensive inconvenience – but the impact can be far worse – leaving you in legal hot water.

Here are just three of the ways in which that can happen, to demonstrate why cybersecurity must always be taken seriously:

Data breaches

Almost all companies hold some information on their customers. Even if you don’t store credit card numbers or other financial details, there is probably still some information on your systems that would cause distress and anger for your customers if it were to be compromised.

Data breaches often make front page news. One such example of this is the Equifax hack that was exposed in 2017. It cost the organization millions of dollars and a massive amount of damage to the company’s reputation. Class action lawsuits are underway at the time of this writing, and the company’s related problems are far from over.

However, it’s not only large companies who have such problems. If you experience a similar breach at your firm, you could find yourself in equal legal troubles, but without the financial resources that a national company such as Equifax has at its disposal.

It’s therefore imperative to do everything you humanly can to minimize the chances of a cyberattack that could result in a data breach. If need be, call in specialists to assist. Cybersecurity professionals are in considerable demand due to a dawning realization that all companies need to take these risks seriously.

Illegal use of systems

Through no fault of your own, you could find yourself liable for things your staff decides to do using your company equipment or internet connections. For example, you may experience a user torrenting files without the protection of a VPN, or trolling people on social media.

Even though it may seem unjust that you could end up in legal trouble due to the actions of employees, it is a reality. Insurance companies make clear that due to what is known as “vicarious liability” employers can be found responsible.

As such, it is essential to ensure staff know the rules around how to use company systems, and that breaches are followed up with disciplinary actions if necessary.

Data Protection

You don’t actually need to have a data breach to land in legal trouble regarding customer data. Due to a range of legislation, such as the EU GDPR (General Data Protection Regulation which will take effect on May 25), you could experience difficulties by merely failing to take care of data in accordance with the rules of any territory you operate in.

As an example, local laws may require you to always use full disk encryption on company systems, only store data on servers in certain countries, and have a documented procedure for deleting customer information on request. Some laws also require you to show anyone who asks what data you hold about them.

While there are many resources out there to help you with this kind of compliance, as with all cybersecurity issues, it’s best to call in expert assistance if you have doubts.

Cybersecurity may not be at the top of your priority list. It may feel like a hugely time consuming distraction from your primary need to make your business successful and profitable. But if you ignore it, you do so at your own peril.


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Danni White | Danni White is the Director of Content Strategy and Development at Bython Media and the Editor-In-Chief at, a top B2B digital destination for C-Level executives, technologists, and marketers. Bython Media is also the parent company of,, List.Events, and

Danni White | Danni White is the Director of Content Strategy and Development at Bython Media and the Editor-In-Chief at, a top B2B digital destin...

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