When is a law firm liable for a data breach? An exploration into the legal liability of ransomware and cybersecurity

Abstract

Purpose

The threat of cybercrime is pervasive. Corporations cannot be convinced, out of sheer luck or naïve conviction, that they will remain unaffected. When targeted, the stark reality is that a company also incurs a liability risk. This paper aims to explore the boundaries of liability resulting from a data breach and privacy concerns according to the emerging regulations on cybersecurity.

Design/methodology/approach

The nature of cybercrime and its constant evolution is analysed as a threat of liability. Its distinctly modern developments require consideration. In response to the threat of hackers, the protection that a corporation can invoke is also considered as a mitigating factor in ascribing liability.

Findings

Preventative steps to protect a corporation from cyberthreats must remain a consistent priority in the running of a company. The influence of human behaviour has become a foreseeable element in cybersecurity and as such the management of unreliable user behaviour is a key determining factor in ascribing liability in hindsight.

Originality/value

Foresight is everything in the prevention of cyberattacks. Cyberattacks can no longer be dismissed as an unlikely eventuality. Legislation on data security and data privacy is demanding higher standards of preventative action, under the duty of care to stakeholders. There is a substantial literature deficit on data security and data liability regulations in light of the liability risk incurred by cyberattacks.

Citation

Teichmann, F.M.J. and Wittmann, C. (2023), "When is a law firm liable for a data breach? An exploration into the legal liability of ransomware and cybersecurity", Journal of Financial Crime, Vol. 30 No. 6, pp. 1491-1498. https://doi.org/10.1108/JFC-04-2022-0093