Personal data is now a highly valuable asset, and it’s used in an ever-growing number of ways – from targeted advertising to personalised services. But as the use of data expands, so do the risks, with data breaches becoming alarmingly common. Fortunately, the law protects individuals in the event of a data breach, giving you the right to seek compensation. One of the most effective ways to do this is through group litigation, which allows victims to band together and take collective action. 

In this guide, we’ll break down your rights, explain how group litigation works for data breaches, and show you the steps to take if your personal data has been compromised. 

What are data breach cases, and how do they occur? 

A data breach happens when personal information is accessed, disclosed, or misused without authorisation. While many data breaches are caused by cyber-attacks or malicious intent, not all breaches are the result of criminal activity. Common reasons for data breaches include:  

• Hacking: Cybercriminals target weak points in a company’s security systems, stealing personal and financial information. 

• Phishing: Fraudsters deceive individuals into providing sensitive details through fake emails, websites, or other channels. 

• Insider threats: Employees mishandle or misuse data, either unintentionally or maliciously. 

• Human error: Sometimes, data breaches happen because of mistakes, like sending sensitive information to the wrong recipient or failing to secure files properly.  

Data breaches caused by human error 

Surprisingly, 88% of data breaches are caused by human error, not cybercriminals. Often, this is due to insufficient training, inadequate security protocols, or outdated IT systems. These errors, though unintentional, can have serious consequences. Here are some examples of how human error leads to data breaches: 

• Simple mistakes: Employees may accidentally send sensitive data to the wrong person, fail to encrypt files, or mishandle confidential information. 

• Lost or stolen devices: Company laptops, phones, or hard drives containing personal data can be lost or stolen, a risk that has risen with the increase in remote working. 

• Incorrect data disposal: Improperly disposing of sensitive documents or failing to permanently delete files from old devices can expose personal information to unauthorised access. 

• Weak passwords: Employees using easily guessed or reused passwords across multiple accounts can create vulnerabilities, allowing unauthorised parties to gain access to sensitive data. 

Data breaches caused by cybercriminals  

While human error accounts for most breaches, cybercriminals remain a significant threat. These attacks are often highly targeted and sophisticated, designed to exploit weaknesses in an organisation’s defences. 

• Ransomware attacks: Hackers infiltrate systems and hold data hostage, demanding payment for its return. These attacks have become more prevalent in recent years. 

• Data theft and sale: Cybercriminals may steal personal information to sell it on the dark web, where it can be used for identity theft, fraud, or other illegal activities. 

• Social engineering: Hackers manipulate employees into granting them access to sensitive systems or information, bypassing security measures. 

• Phishing campaigns: These involve fraudulent emails or messages designed to trick individuals into revealing passwords or clicking on malicious links, giving attackers entry into systems. 

• Distributed Denial of Service (DDoS) attacks: Cybercriminals overwhelm a network with traffic, rendering it inaccessible and distracting security teams while attempting other infiltrations or data theft. 

Whether caused by human error or cybercriminals, the frequency of data security incidents is rising.  

Examples of high-profile data breach cases  

High-profile cases involving data breaches have exposed the personal data of thousands, leading to group litigation and significant compensation payouts. Here are some recent actions you might have heard about:  

• In 2021, the British Airways data breach action was resolved on confidential terms following successful mediation and negotiation. A similar legal claim against EasyJet is currently underway. 

• In 2022, Ticketmaster settled a data breach group action on a no-admission basis. In 2024, the ticketing giant experienced ANOTHER mass data breach.  

• Law firms are currently pursuing a group action claim against Capita after UK pension holders and their beneficiaries had their data breached. 

• In 2023, criminals hacked genetics testing company 23andMe, stealing the personal data of around seven million customers. The UK’s data protection watchdog has launched an investigation into the data breach. 

• In 2023, a MOVEit file transfer breach affected businesses around the world. Thousands of people across the UK are at risk because of the breach.   

• The Arnold Clark data hack may have compromised sensitive customer information – including copies of passports and bank information. Stolen data from this breach has been found on the dark web. 

• Grindr is being sued for sharing its users’ HIV status without their consent. Grindr has millions of subscribers, and the data breach could affect thousands of people in the UK.  

Your rights in data breach cases 

If your personal data has been compromised, understanding your legal rights is essential. In the UK, your rights are protected under the Data Protection Act 2018 and the UK General Data Protection Regulation (GDPR). 

Fundamental rights in data breach cases include: 

• Right to access: You can request a copy of any personal data an organisation holds about you, including information about how it has been used. This is called making a subject access request (SAR) 

• Right to rectification: If incorrect or incomplete data is held about you, you can request it be corrected. 

• Right to restrict processing: You can request an organisation limits how it uses your data.  

• Right to erasure: Commonly known as the “right to be forgotten,” this allows you to request that your personal data be deleted in certain circumstances. 

• Right to be informed: Organisations must notify you if your personal data has been involved in a breach that risks your rights and freedoms. 

Find out more about all your data protection rights here.  

If you believe your rights have been violated due to a data breach, you might have a group litigation compensation claim. 

Compensation following a data breach  

If your personal information has been exposed due to a data breach, you may be entitled to compensation for both financial and non-financial losses. By uniting with others, you can strengthen your individual claim and increase the pressure on the company responsible to offer higher compensation.  

Financial loss 

If the breach leads to direct monetary losses, you can seek compensation. This might include for: 

• Stolen funds: For example, if your bank details were compromised and money was taken from your account. 

• Costs of mitigating the breach: You may also claim for expenses related to protecting yourself from further harm, such as paying for identity theft protection services, monitoring credit reports, or changing compromised accounts. 

Emotional distress 

A data breach doesn’t just affect your finances; it can also cause significant emotional harm. This can include: 

• Anxiety: Knowing sensitive personal information like your home address, medical history, or financial data is – or could be – in the hands of unauthorised individuals can be extremely stressful. 

• Loss of privacy: Data breaches often result in sensitive details being exposed to the public or used for fraudulent purposes, causing significant distress. 

• Reputational damage: If the data breach affects personal or professional reputation, compensation can cover the harm done to your social or professional standing. 

Time and inconvenience 

In addition to financial losses and emotional distress, you can also seek compensation for the time and inconvenience spent resolving the issues caused by the breach. This includes the time spent managing the fallout from the breach, such as dealing with banks, legal advisors, or credit monitoring services. 

Future risks and potential harm 

In some cases, data breaches can have long-term impacts, and compensation may reflect the potential future risks associated with the misuse of your data. For instance: 

• Identity theft: Personal information can be misused months or even years after the breach occurs, leading to ongoing risks of identity theft. The cost of future protective measures (such as ongoing credit monitoring) may be included in compensation claims. 

• Fraudulent activities: Even if you haven’t yet suffered direct financial loss, if your data was compromised, you could claim for the increased risk of fraud in the future. 

Your solicitor will advise you on what you can claim for, and the likely compensation you could receive if your claim is successful.   

No minimum compensation in data breach cases  

In 2023, the European Court of Justice ruled people can claim compensation for data breaches even if they haven’t suffered financial loss. This is important for individuals who experience emotional stress or anxiety due to the breach, as they can still seek compensation. While the ruling is not legally binding in England and Wales, it was welcomed by leading data breach solicitor Kingsley Hayes of KP Law, who said:  

“This is good news for individuals who have a right to claim compensation when organisations fail to protect their data and provides an interesting challenge to those who seek to minimise access to justice for mass claimants utilising threshold as a key strategy to their defence. 

“A GDPR violation can have a far-reaching impact on individuals. The threat of fraud when personal information gets into the wrong hands can be devastating, even if the financial risks are quickly mitigated. 

“The law is clear around organisations’ legal duty to securely protect the confidential information processed, shared and stored.” 

How group litigation works for data breach cases 

Group litigation allows individuals affected by the same issue – in this case, a data breach – to unite in a single legal claim. Rather than each person filing their own lawsuit, group litigation consolidates these claims into a single case.  

The process of joining a group action typically involves the following steps: 

• Eligibility check: To join a data breach group claim, you must meet specific criteria. Group action hubs like Join the Claim offer straightforward checks to determine eligibility. 

• Representation: If eligible, a law firm will guide you through the legal process. Join the Claim can connect you with a law firm running a relevant group data breach case.  

• Negotiation: Once the group action is underway, the law firm representing the group will negotiate on behalf of all claimants. The aim is often to reach a settlement without going to court, especially in cases where companies want to avoid the negative publicity and expense of a trial.  

• Settlement: If a settlement is reached, it usually involves compensation being awarded to the affected individuals. Settlements are typically divided among the claimants based on their individual circumstances, such as the extent of their damages. 

• Court action: If no settlement is reached, the case may go to trial. In this scenario, the group will continue to be represented by the law firm, which will present the case in court on behalf of all claimants.  

Benefits of group data breach cases 

Group litigation offers numerous advantages for individuals affected by data breaches. Here’s why it’s often the best path to justice: 

Collective bargaining power 

Group litigation allows claimants to exert more pressure on large corporations. When multiple individuals join forces, it strengthens the case, forcing companies to take accountability for their actions. 

With the collective power of multiple claimants, group litigation can result in larger settlements than individual claims. This is particularly important in cases where the breach affected thousands of people, as it increases the pressure on companies to resolve the case quickly and fairly. 

Shared costs 

One of the significant benefits of group litigation is that the legal costs are shared among all claimants. This makes it more affordable than pursuing individual data breach lawsuits.  

Even better, in most group litigation cases, law firms operate on a no-win, no-fee basis, meaning you won’t have to pay legal fees unless the case is successful. This financial model makes it more accessible for individuals to pursue justice without worrying about upfront costs. 

Efficient legal process 

Instead of managing multiple individual lawsuits, group litigation consolidates similar claims, streamlining the legal process and making it easier for courts to handle complex cases. This can lead to quicker resolutions and more consistent outcomes for all claimants in mass data breach cases. 

Access to experienced legal teams 

Group litigation often involves specialised law firms with experience handling large, complex cases. These legal teams are well-equipped to fight for your rights and secure the best possible outcome. 

Steps to take after a data breach 

If you suspect your data has been compromised, it’s important to act quickly to protect yourself and preserve your rights. Here’s a step-by-step guide to what you should do following a data breach: 

Report the breach 

If you are informed your data has been compromised in a data breach, you should report the matter to the Information Commissioner’s Office (ICO). The ICO is the UK’s data protection watchdog.  The ICO is the UK’s data protection watchdog.  

Monitor your accounts 

Keep a close eye on your bank and credit accounts for any suspicious activity. If your financial information has been compromised, inform your bank immediately and consider freezing your credit. 

Warn the credit providers 

Call Credit, Experian and Equifax to ensure credit isn’t taken out in your name. 

Change passwords 

If login credentials were exposed, change your passwords immediately – including for other accounts sharing the same details – and enable multi-factor authentication where possible.  

Be vigilant 

Data breach victims are often contacted by cybercriminals who try to trick them into sharing even more personal and financial data. Be careful who you trust and don’t be rushed or pressured into making a decision.  

Join a compensation claim 

Contact a law firm to discuss starting a group action and your options for claiming compensation. Check out Join the Claim to see if a suitable group action has already been started.  

Document the impact 

Keep detailed records of any financial losses, emotional distress, or other impacts caused by the breach. This information will be crucial in supporting your compensation claim. 

In conclusion 

Data breaches are a growing threat, but individuals have the right to seek compensation when their personal information is mishandled. By joining a group action, you can strengthen your claim, reduce costs, and hold companies accountable for failing to protect your data.  

If you’ve been affected by a data breach, Join the Claim will help you connect with an experienced law firm and make the process of seeking compensation as straightforward as possible. 

Don’t wait to take control of your rights! 

Visit Join the Claim to see if you’re eligible to join a data breach group action and start your journey toward justice today.