What are the consequences if I do not report data breaches?
December 5, 2023 | 50,00 EUR | answered by Andrea Schlattmann
Dear lawyer,
my name is Felix Heuser and I work as a data protection officer in a medium-sized company. Lately, there have been an increasing number of data breaches within our company. These range from accidental email sendings to wrong recipients to unauthorized access to sensitive customer data.
Although I am aware that we are legally obliged to report data breaches to the relevant supervisory authority without delay, I wonder what consequences we face if we do not fulfill this duty. I am concerned about the reputation of our company, possible fines, and legal consequences that may arise if we do not report data breaches.
Could you please explain in detail what consequences there are if we do not report data breaches? Are there ways to rectify the situation and what steps should we take to ensure compliance with the reporting obligation and avoid potential consequences?
Thank you in advance for your help and support.
Sincerely,
Felix Heuser
Dear Mr. Heuser,
Thank you for your inquiry regarding the obligation to report data breaches in data protection law. Data breaches are a serious issue that can have both legal and financial consequences for a company. As a data protection officer in a medium-sized company, it is important to be aware of this responsibility and act accordingly.
According to the General Data Protection Regulation (GDPR), companies are required to report data breaches to the relevant supervisory authority without delay. This is especially true when the data breach poses a risk to the rights and freedoms of the affected individuals. It is important to emphasize that this reporting obligation exists regardless of whether the data breach was caused by internal or external actions.
Failure to report data breaches can lead to various consequences for your company. Firstly, there is a risk that the supervisory authority will become aware of the data breach and consider it a violation of the GDPR. In this case, the authority can impose a fine of up to 20 million euros or 4% of the company's worldwide annual turnover, depending on the severity of the violation. Furthermore, such a violation can also lead to reputational damage, as customers and business partners may lose trust in the security of their data.
To ensure compliance with the reporting obligation and avoid potential consequences, it is important for your company to implement effective data protection management. This includes regularly training employees on handling sensitive data, creating an emergency plan for dealing with data breaches, and documenting all incidents that may need to be reported.
If a data breach does occur, it is important to act quickly. You should immediately document the data breach internally, conduct a risk assessment to determine if reporting is necessary, and inform the relevant supervisory authority if needed. Additionally, you should inform all affected individuals about the data breach and take measures to mitigate any damage.
Overall, it is crucial for your company to take the reporting obligation of data breaches seriously and take appropriate measures to ensure compliance with the GDPR. Through effective data protection management, you can not only avoid potential consequences but also strengthen your customers' trust in the security of their data.
I hope this information is helpful to you and I am available to assist you with any further questions.
Best regards,
Andrea Schlattmann
