What is a Data Breach?
Data Breach refers to any incident that compromises personal information without the consent of the affected individual. This can include unauthorized modification, deletion, or exfiltration of information in an information system. Breaches can be caused by a variety of factors, including hacking, ransomware, malware, or even by human error such as a lost or stolen device.
Many criminals sell compromised information on the dark web. This gives victims elevated risk of identity theft for years after the incident, and may lead to financial harm such as debt or loss of credit. Victims can also suffer emotional distress and loss of trust in a company.
The breach of TJX Corporation (parent company to stores TJ Maxx and Marshalls) in 2007 was the largest and most costly consumer data breach in US history. A wide range of personal and private information was stolen, including contact information such as names, addresses, phone numbers, and emails; health insurance details, like policy and member identifiers; medical information, such as diagnosis, medications, and test results; driver’s license and Social Security number; and account credentials such as passwords.
Companies that suffer a data breach have to notify their customers of the incident. These notifications can be in the form of letters or email messages, or they can be on paper or in electronic format. States have different laws regarding notification requirements and how quickly breaches must be reported. They also differ on whether the state attorney general must be notified, and on whether a risk of harm analysis is required.