Business Risk of Not Being Compliant with the 1998 Data Protection Act
Internet fraud and data theft present an increasing risk to businesses, and with new Data Protection legislation bringing hefty fines and even a possible jail sentence for breaches, it’s a legal requirement that company owners, regardless of business size or turnover, provide training to all members of staff.
The penalties for non-compliance with the Data Protection Act are severe. From April 2010 businesses could be fined up to £500,000 and individuals could face a two-year custodial sentence for breaches of the data protection principles.
The financial cost to a business is significant. Over and above the fine, the cost of a breach has been estimated at £67 per record compromised. So even if you have a relatively small database, with maybe only 1000 records, you can see how the costs will stack up. Ultimately the damage to your reputation could prove irreversible.