Impact on Clients and Customers

When a security breach means that the personal data of clients or customers has been accessed, compromised or leaked, the harm does not stop at the organisation. The people whose information was held can face serious and lasting consequences.

Stress and loss of trust

Finding out that personal details such as addresses, payment details or medical notes have been seen by someone who should not have them can be very stressful. Even if the data is not misused, not knowing who has it causes worry. Customers may lose trust in the organisation and stop using its services. In serious cases they may take legal action against the organisation, arguing that it failed to keep their data safe. For example, a customer of a ticket booking website might feel anxious after their card details are exposed and join a claim against the company.

Identity theft

Stolen personal data may be sold to criminals. With enough details, someone can pretend to be the customer and apply for credit or open accounts in their name. This is identity theft. The customer may only find out when an unexpected bill arrives or a genuine application for credit is refused. For example, after a breach at an online pet supplies shop, a fraudster uses a customer's leaked name, address and date of birth to set up a broadband contract in their name. The customer only finds out when a bill for a service they never ordered arrives.

Time, effort and hardship

Sorting out the consequences can take a lot of time and effort. A customer may need to contact their bank, change passwords on many accounts, check statements for unfamiliar payments and prove their identity. This can cause hardship, especially if money is taken or their credit rating is affected. For example, a parent might spend several evenings calling their bank and a credit reference agency after a breach at a children's sports club.