Cyberattacks leave businesses wide open to lawsuits

From: Silicon Republic

by John Kennedy

The damage to both reputation and finances caused by a security breach or cyberattack would put fear into the heart of any business owner — even before thinking about the potential lawsuits and fines that could follow.

Yes, failure to secure your systems means irate customers whose finances were compromised or identities stolen are well within their rights to sue you. And if you are a US-based company, class actions by angry shareholders are an ever-increasing reality.

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San Francisco-based John Whelan, partner and head of A&L Goodbody’s International Technology Practice, told Siliconrepublic.com that, as hackers are becoming more sophisticated and malware more devious, company boards need to ensure they have policies in place for the aftermath of an attack or breach.

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