It can be horrifying to check your bank account and discover funds missing. If you have been the victim of a compromise in your personal data, you may be eligible for bank data breach compensation. This guide will explain how to sue for data breach compensation after a problem at your bank and provide practical advice on your options.
First, we explain what a bank data breach is and who can claim compensation. We offer some examples of data breaches involving a bank. Additionally, we outline a handful of bank breaches that made the news.
Evidence is essential for making a claim and we detail that. The guide then moves on to an explanation of compensation – how it could be calculated and what it can cover. This guide comes to a conclusion with our penultimate section on how a data breach solicitor under a No Win No Fee contract could help you claim compensation.
To speak about your claim in person now, simply connect with our friendly advisors. They can provide an instant assessment of the strength of your claim and if you’re interested, connect you with a solicitor from our panel to get started. Discover more by:
- Calling 24/7 for free legal information on 0800 408 7827.
- Contact us through our website to see if you can claim.
- Ask us anything through live support below.
Choose A Guide Section
- What Is A Bank Data Breach?
- Can I Claim Bank Data Breach Compensation?
- What Are Examples Of A Bank Data Breach?
- What Recent Bank Data Breaches Have Happened?
- How Do I Start A Claim For A Bank Data Breach?
- How Much Bank Data Breach Compensation Could I Receive?
- Why Claim Data Breach Compensation Using A No Win No Fee Solicitor?
- Resources About Data Breach Claims
What Is A Bank Data Breach?
A bank data breach can be when a bank or building society fails to protect your personal information as required by law. A personal data breach can be the loss of availability, integrity and confidentiality of protected information. Or its unauthorised duplication, destruction or sharing.
Personal data is a term used to describe any detail that identifies you, either on its own or as part of broader information. We look at the laws that protect personal data in the next section, but typically in a bank data breach, the following information can be exposed:
- Name and address.
- Email and contact numbers.
- Bank account numbers and sort codes.
- Mortgage, pension, shares and investment information.
Failure to adequately protect personal data is called wrongful conduct. Below, we explain how proving this forms the foundation of a compensation claim for bank data breach.
Can I Claim Bank Data Breach Compensation?
There are two main pieces of data protection legislation in the UK. The Data Protection Act 2018 and the UK General Data Protection Regulation (UK GDPR) are the two main pieces of legislation that are designed to protect personal data in the UK.
These laws are enforced by the Information Commissioners Office (ICO) which can issue penalties against those who mishandle or misuse our personal data. The ICO identify two main groups that use our data called processors and controllers.
Data controllers decide why and how personal data is processed. They may process it themselves. Alternatively, they can instruct a data processor to do so, either fully or partially. However, both processors and the controllers they appoint are expected to fully comply with the Data Protection Act and UK GDPR. If they are not fully compliant and this causes a personal data breach, you may be able to claim compensation.
To have eligible grounds to start a data breach claim, you need to demonstrate three points:
- Your personal data was involved in a data breach.
- The controller or processor who held your information was guilty of wrongful conduct and failure to follow data protection laws.
- Because of this, you suffered monetary and/or psychological harm.
If you feel that your case meets all these criteria, speak to our advisors about your options to claim bank data breach compensation.
What Are Examples Of A Bank Data Breach?
We now look at some examples of bank data breaches and how they could form the basis of a compensation claim:
- Staff at the bank post your replacement credit or debit cards to an incorrect address despite having the right details on file. The residents at the incorrect address use the information to harass you and cause distress.
- A member of staff at the bank loses a laptop or memory stick that contains your personal data. A member of the public accesses this data and uploads it to the internet, causing you distress.
- Branch staff fail to ask the correct security questions and this permits others to access your banking details. You suffer acute psychological anguish from the worry it causes.
What Recent Bank Data Breaches Have Happened?
Despite rigid security steps, banks are still under fairly constant attack from online fraudsters. Some notable examples of bank data breaches include:
- Tesco Bank was found liable for failing to exercise due diligence, care and skill in protecting current accounts. Their failure to respond promptly to concerns about a design flaw in their debit card resulted in cybercriminals gaining access to personal data. The ICO fined Tesco Bank £16.4 million.
- The Bank of Ireland was reprimanded by the ICO for sending incorrect outstanding balances to 3,284 customers in March 2021. This caused mistakes in the customers’ credit profiles.
- Capital One – In March 2019, a former software employee illegally accessed one of the bank’s servers and stole the data of 100 million credit card applicants.
Sources: https://www.fca.org.uk/news/press-releases/fca-fines-tesco-bank-failures-2016-cyber-attack, https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2023/12/bank-of-ireland-uk-reprimanded-for-inaccurate-data-on-customers-accounts/, https://www.bbc.co.uk/news/world-us-canada-49159859
How Do I Start A Claim For A Bank Data Breach?
If you suspect a bank data breach, there are some practical actions you can take to build a compensation claim.
- If you become aware of an issue, you can contact your bank. Your bank should inform you about data breaches that might impact your freedoms and rights within 72 hours of discovery. So you might have written or emailed notifications from them, which can be used as evidence.
- If you fail to receive a meaningful response, wait no later than 3 months to complain to the ICO. They may investigate and then you can use their findings to support your bank data breach compensation claim.
- Keep hold of all bank statements, credit reports, recipes, invoices or any other item that shows related expenses caused because of the breach of your personal data.
- Have an assessment of your mental health taken to substantiate any claim for the psychological injury caused.
- Consider seeking legal representation. Our advisors are on hand to offer free guidance on instructing a solicitor specialising in data breach claims.
How Much Bank Data Breach Compensation Could I Receive?
The settlement for a successful bank data breach can incorporate two types of loss classed as material and non-material damage compensation. Non-material damage compensation is awarded for the emotional harm created by the data breach.
After an event like this, it can be possible to experience very real stress and trauma, depression or anxiety. Legal professionals may use medical evidence of psychological harm and compare it with similar injuries listed in publications like the Judicial College Guidelines (JCG). This publication offers a variety of compensation guidelines to assist them with the valuation of data breach compensation claims.
Below is an excerpt from this index of compensation guidelines. As all successful bank data breach claims are settled on their own merits, it is only to be used as a guide. Additionally, the figure in the top row was not taken from these guidelines.
Compensation Guidelines
| Injury | Severity | Compensation Guidelines |
|---|---|---|
| Severe Mental Harm and Financial Damage | Severe | Up to £250,000 plus |
| Psychological Harm | (a) Severe | £66,920 to £141,240 |
| (b) Moderately Severe | £23,270 to £66,920 | |
| (c) Moderately | £7,150 to £23,270 | |
| (d) Less Severe | £1,880 to £7,150 | |
| PTSD (Post-Traumatic Stress Disorder) | (a) Severe | £73,050 to £122,850 |
| (b) Moderately Severe | £28,250 to £73,050 | |
| (c) Moderate | £9,980 to £28,250 | |
| (d) Less Severe | £4,820 to £9,980 |
Can I Claim For Material Damage After A Data Breach?
Material damage refers to reimbursements for the monetary harm caused by the data breach. To include a claim for material damage, you must present documented evidence. This can be the following:
- Any payslips that show you needed time off from work because of diagnosed stress.
- The costs of re-establishing privacy on devices or at home.
- Counsellors fees for psychological harm.
A solicitor can support you through the process of gathering evidence and calculating the compensation you could be awarded. Discover more by reaching out to the team.
Why Claim Data Breach Compensation Using A No Win No Fee Solicitor?
It might be possible to access the excellent services of data breach solicitors to assist you through the claims process. Whilst you are free to initiate a claim independently, it makes more sense to connect with a solicitor who can:
- Organise your claim and present it professionally.
- Help you collect supporting evidence of financial and/or emotional harm.
- Accurately calculate the amount of compensation owed.
These excellent services may also be available to you through a type of No Win No Fee contract. The solicitors on our panel often use Conditional Fee Agreements (CFA) to launch proceedings. This means no upfront or ongoing solicitors fees need to be paid to commence work on the claim. Also, solicitors’ fees for completed services do not apply should the claim be lost.
For a bank data breach claim that wins, a limited percentage needs to be deducted from the compensation as a success fee. However, to ensure that you always benefit first and foremost, this percentage is subject to a legal limit.
If you think you qualify and are interested in seeing how a solicitor offering a CFA would help you, reach out to our advisors by:
- Calling 24/7 for free legal information on 0800 408 7827.
- Contact us through our website to see if you can claim.
- Ask us anything about compensation claims for a data breach through live support below.
Resources About Data Breach Claims
In addition to this guide about bank data breach compensation, you can uncover more in the following guides from our website:
- Here we discuss how to sue a post office for a data breach.
- In addition to this, here we look at an email data breach.
- Also, general guidance on UK GDPR breaches and how to seek compensation for a breach.
External help:
- More information from GOV.UK about data protection here.
- Also, the National Cyber Security Centre (NCSC) provides top online security tips for individuals and families.
- Lastly, here is guidance on finding out what data an organisation has about you on the Government website.
In conclusion, we appreciate you reading our guide about bank data breach compensation claims. Our dedicated team is happy to help with any other issues on the number at the top.