Imagine it’s a normal day. You’ve just got out of bed and are making your morning coffee when you casually check the news. You pause as the kettle brews and look at one of the headlines. There has been a massive data breach at a company that holds personal information about you. What does this mean for you?
Some data breaches are worse than others. In many instances the damage will be limited, but in some cases the repercussions may be disastrous. If it comes to making a claim, the impact (or potential impact) of the lost data will be considered with regard to the compensation you may receive. Here are some of the common worst case scenarios when data breaches occur:
Billions of pounds are lost every year to online fraud. For the victims, it can be devastating. You can take measures to protect yourself, like never giving out your bank information to anybody unless you are absolutely sure they’re legitimate – but even the most cautious person can’t do anything to stop that same legitimate company being hacked. Even though you will probably be able to get your money back from the bank eventually, you may incur problems paying bills and buying everyday essentials until you do.
If criminals get hold of your personal information, they can use it to impersonate you and open bank accounts, credit cards, loans, phone contracts and other things under your name. You may not even notice this until it’s been happening for a while. Sometimes it can be difficult to prove it wasn’t you. Your credit score may also be damaged, and as some extra salt in the wound, it may subsequently be harder for you to take out legitimate loans once you have a fraud warning on your account.