When a data breach occurs, the guilty party—a fraudster or criminal syndicate— is often nowhere to be found. Who bears the loss from a breach perpetrated by a fraudster: the consumer whose data was compromised, the financial institution where the data was used, or the business that failed to protect the data? Often, the loss initially falls on the financial institution through account or card agreement provisions or deadlines imposed by statutes or regulations. Can a financial institution recover these losses from a business with whom it has no contract? This depends on which law applies.
Continue Reading Recovering Data Breach Losses from Non-Contractual Parties