What Is a Data Breach?

By Patrick Nolen on July 2, 2024

In the modern digital landscape, data breaches have become an unfortunate reality. As technology advances and more personal information is stored online, the risk of sensitive data falling into the wrong hands has increased significantly.

A data breach occurs when unauthorized individuals gain access to confidential or protected information, potentially leading to a wide range of negative consequences for those affected. If you have been the victim of a data breach, you may have legal recourse depending on the incident’s circumstances and the extent of the damages you have suffered.

In this blog post, we’ll discuss data breaches, how they occur, and how a data breach lawyer can help you if your personal information is compromised.

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Recent Data Breaches That Could Affect You

Unfortunately, no one is immune to the threat posed by data breaches.

In recent years, several high-profile incidents have directly impacted millions of individuals and businesses across the country, compromising sensitive personal information and leaving countless people vulnerable to identity theft and fraud.

Here’s a closer look at some of the most notable data breaches in recent years.

Ascension (2024)

Ascension, one of the largest non-profit health systems in the United States, fell victim to a significant ransomware attack that affected operations at its 142 hospitals across 19 states, including St. Vincent’s six facilities in the Birmingham metro area.

The Ascension ransomware attack crippled critical systems, rendering electronic medical records unavailable, taking phone systems offline, and disrupting the scheduling of tests, procedures, and medications.

As a result, several Ascension hospitals were forced to divert patients to ensure immediate triage and elective procedures had to be postponed. There are concerns that the hackers could release patients’ private medical information.

Blackbaud (2020)

Blackbaud, a cloud computing provider that serves many non-profit organizations, fell victim to a ransomware attack. As a result, the personal information of donors, students, and patients associated with various institutions was compromised.

This breach affected several Birmingham-based entities, including the University of Alabama at Birmingham and Children’s of Alabama hospital, leaving many residents vulnerable to potential identity theft and fraud.

Equifax Data Breach (2017)

One of the most infamous data breaches in recent history is the Equifax breach that occurred in 2017. Equifax, one of the three major credit reporting agencies in the United States, suffered a massive data breach that exposed the personal information of approximately 147 million people.

The compromised data included names, Social Security numbers, birth dates, addresses, and even driver’s license numbers. The scale of this breach was staggering, affecting nearly half of the U.S. population. The incident highlighted the vulnerability of even the most well-established and trusted institutions when protecting sensitive data.

Yahoo! Data Breaches (2013-2014)

Yahoo!, once a leading internet company, experienced two significant data breaches in 2013 and 2014. The first breach, which occurred in 2013, impacted all 3 billion Yahoo! user accounts, making it one of the largest data breaches in history.

The second breach, which occurred in 2014, affected approximately 500 million accounts. The compromised information included names, email addresses, telephone numbers, dates of birth, and encrypted passwords. These breaches had far-reaching consequences, affecting users worldwide and damaging Yahoo!’s reputation.

Marriott International Data Breach (2018)

In 2018, Marriott International, one of the world’s largest hotel chains, reported a massive data breach affecting its Starwood guest reservation database. The breach, which began in 2014 and went undetected until 2018, exposed the personal information of up to 500 million guests.

The compromised data included names, addresses, phone numbers, email addresses, passport numbers, and travel details. The incident raised concerns about the security measures in place at large multinational corporations and the potential for long-term, undetected data breaches.

Anthem Data Breach (2015)

Anthem, one of the largest health insurance companies in the United States, suffered a data breach in 2015 that affected nearly 80 million people. The compromised information included names, addresses, Social Security numbers, and medical IDs.

The breach highlighted the vulnerability of the healthcare industry and the sensitive nature of the data it collects and stores. It led to increased scrutiny of the security practices within the healthcare sector and the need for enhanced data protection measures.

Target Data Breach (2013)

In 2013, Target, a major U.S. retailer, experienced a data breach that affected approximately 110 million customers. The breach occurred during the busy holiday shopping season and exposed customer names, credit card numbers, expiration dates, and CVV codes.

The incident led to a significant loss of trust among Target’s customer base and resulted in substantial financial losses for the company. The breach served as a wake-up call for retailers nationwide, emphasizing the importance of robust cybersecurity measures to protect customer data.

The Consequences of a Data Breach

As technology continues to advance and more of our personal information is stored online, the risk of data breaches will likely continue to grow.

The far-reaching and devastating impact includes:

• Identity Theft: When personal information is exposed in a data breach, cybercriminals can use that data to open fraudulent accounts, take out loans, or make unauthorized purchases in the victim’s name. Identity theft can have long-lasting effects on an individual’s financial well-being and credit score.
• Financial Losses: Depending on the nature of the data breach, affected individuals may suffer direct financial losses. These can include unauthorized credit card charges, drained bank accounts, or even stolen tax refunds.
• Emotional Distress: The fallout of a data breach can be emotionally taxing for victims. The uncertainty of not knowing how criminals will use their personal information, as well as the time and effort required to resolve any issues that arise, can lead to significant stress and anxiety.
• Damaged Reputation: The consequences can extend beyond financial losses for businesses that experience a data breach. A breach can damage a company’s reputation, eroding customer trust and potentially leading to a loss of business.

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Legal Recourse for Data Breach Victims

If you have been the victim of a data breach, you may have legal recourse depending on the incident’s circumstances and the extent of the damages you have suffered. While the specific legal options available may vary based on your location and the details of the breach, there are several common avenues for seeking compensation and holding the responsible parties accountable.

Class Action Lawsuits

In many cases, data breaches affect a large number of individuals, making it impractical for each person to pursue legal action independently. In such situations, a class action lawsuit may be the most effective means of seeking justice.

A class action lawsuit allows a group of similarly affected individuals to collectively bring a claim against the company or organization responsible for the data breach. These lawsuits often seek compensation for damages such as identity theft, fraudulent charges, and the cost of credit monitoring services.

If a data breach affected you, you may join an existing class action lawsuit or work with an attorney to initiate a new one.

Individual Lawsuits

In some cases, the damages suffered due to a data breach may be significant enough to warrant an individual lawsuit. This may be particularly true if you have experienced substantial financial losses, emotional distress, or other unique damages that set your case apart from others affected by the breach.

By filing an individual lawsuit, you can seek compensation tailored to your specific circumstances and hold the responsible parties directly accountable for their negligence or wrongdoing.

State and Federal Laws

Various state and federal laws may provide a basis for legal action in the event of a data breach. For example, the California Consumer Privacy Act (CCPA) establishes certain obligations for companies that collect and store personal data, as well as penalties for failing to adequately protect that data.

Similarly, the Health Insurance Portability and Accountability Act (HIPAA) sets strict requirements for safeguarding personal health information. If a company or organization violates these or other relevant laws, affected individuals may have grounds for legal recourse.

Breach of Contract

In some cases, a data breach may constitute a breach of contract between the affected individual and the company or organization responsible for safeguarding their data.

For example, if you entrusted a company with your personal information under the assumption that they would protect it, and they failed to do so due to negligence or inadequate security measures, you may have a claim for breach of contract.

This type of legal action may allow you to recover damages related to the breach and hold the company accountable for failing to uphold its contractual obligations.

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Protecting Yourself Against Data Breaches

While it’s impossible to eliminate the risk of a data breach completely, to protect yourself and minimize the potential impact:

• Monitor Your Accounts: Regularly review your credit reports and financial statements for suspicious activity. Consider signing up for identity theft monitoring services that can alert you to potential threats.
• Use Strong, Unique Passwords: Create strong, unique passwords for each of your online accounts. Avoid using easily guessable information, such as birthdays or names, and consider using a password manager to keep track of your login credentials securely.
• Enable Two-Factor Authentication: Whenever possible, enable two-factor authentication on your accounts. This adds an extra layer of security by requiring a second form of verification (e.g., a code sent to your phone) in addition to your password.
• Be Cautious of Phishing Scams: Be wary of unsolicited emails or messages that ask for personal information or contain suspicious links. Cybercriminals often use phishing tactics to trick individuals into revealing sensitive data.
• Keep Software Up to Date: Regularly update your operating system, antivirus software, and other applications to install the latest security patches and protections.

If you believe your personal information has been compromised in a data breach:

• Place a fraud alert or security freeze on your credit files to prevent unauthorized accounts from being opened in your name.
• Change the passwords on any accounts that may have been affected.
• Report any suspicious activity to the appropriate authorities, such as the Federal Trade Commission or your local law enforcement.

Seeking Legal Assistance

In today’s digital age, data breaches pose a significant threat to individuals and businesses alike. You may have legal recourse if you have suffered losses or damages due to a data breach. At Cory Watson Attorneys, our experienced lawyers are dedicated to helping clients navigate the complex legal landscape surrounding data breaches.

We understand the devastating impact a data breach can have on an individual’s life, and we are committed to fighting for the rights of those affected.

If you believe a data breach has stolen your data and need legal guidance, please don’t hesitate to contact our office at (205) 328-2200 or through our online form to discuss your case during a free, no-obligation consultation. Our knowledgeable team will evaluate your case and explain your options for seeking just compensation.

Call or text 877-562-0000 or complete a Free Case Evaluation form