What damages can you get from a data breach?
Asked by: Prof. Hayden Jenkins V | Last update: February 19, 2026Score: 4.1/5 (51 votes)
Data breaches cause significant damages, including direct financial losses (stolen funds, fraud), identity theft, reputational harm, and emotional distress for individuals, while businesses face massive costs for investigations, legal fees, regulatory fines (like GDPR), lost customer trust, and operational disruption, all leading to potential long-term revenue loss and market value decrease.
How much compensation will I get for a data breach?
Data breach compensation varies widely, from small payments (tens to hundreds of dollars) in class actions to thousands for proven losses, depending on the breach's severity, the sensitivity of compromised data (like SSNs or financial info), documented out-of-pocket costs, time spent recovering, and state laws (like CCPA's $100-$750 per incident). Settlements often cover monetary losses, time, and provide credit monitoring, with higher payouts for significant identity theft or severe negligence by the company.
Is it worth suing over a data breach?
Yes, suing over a data breach can be worth it if you suffered actual financial losses, identity theft, or significant emotional distress, as courts can award compensation for these harms, plus costs like credit monitoring; however, settlements for mere data exposure without tangible harm are often modest, so the value depends heavily on the severity of the impact and the sensitivity of the data exposed.
What kind of damage can a data breach cause?
“A personal data breach may, if not addressed in an appropriate and timely manner, result in physical, material or non-material damage to natural persons such as loss of control over their personal data or limitation of their rights, discrimination, identity theft or fraud, financial loss, unauthorised reversal of ...
How much do data breach settlements pay?
Data breach settlement amounts vary widely, offering cash (often $15-$100+ for basic claims, up to thousands for documented losses like $5,000 in AT&T, Capital One), free credit/medical monitoring, and lost time reimbursement, with final amounts depending on the number of claimants and severity of losses, often requiring proof for higher payouts.
What Type of Damages Can You Recover in a Data Breach Lawsuit?
How are data breach settlements calculated?
How Are Data Breach Claims Calculated? Determining the value of a claim involves several steps. Lawyers and courts typically assess and quantify the following: Out-of-pocket expenses: This includes costs like credit reports, fraud resolution services, legal help, or replacing compromised documents.
What if my SSN was part of a data breach?
If your SSN is exposed in a data breach, immediately report it to IdentityTheft.gov to get a recovery plan, place fraud alerts or credit freezes with the three credit bureaus (Equifax, Experian, TransUnion), closely monitor financial accounts for unauthorized activity, and change passwords on online accounts. You should also secure your phone number and be wary of scams, while considering a police report if fraud occurs.
How to prove damages from a data breach?
Evidence of these losses includes:
- Bank statements showing fraudulent transactions.
- Credit reports indicating unauthorized accounts.
- Identity theft or police reports.
- Documentation of emotional distress, such as medical records, therapists' notes, and personal statements.
What are the 4 actions of a data breach?
In general, a data breach response should follow four key steps: contain, assess, notify and review.
How long do data breach lawsuits take?
It's hard to pinpoint an exact timeline for a data breach lawsuit. It usually starts with discovering the breach and an initial investigation. While simple cases may progress quickly, it's not unusual for large and high-profile cases to take years to settle, especially if the case goes to trial or is appealed.
How much money is enough to sue?
You don't need a fixed amount of money to start a lawsuit, but costs vary widely, from under $100 for small claims court filing fees to tens or hundreds of thousands for complex cases with lawyers, with personal injury often using "no win, no fee" (contingency) arrangements where you pay a percentage (30-40%) if you win. Initial out-of-pocket expenses (filing fees, retainers) can range from under $100 to several thousand dollars, depending on court, case type, and lawyer.
Can I ask for compensation for a data breach?
Yes, you can get compensation for a data breach through class action settlements or individual lawsuits, covering financial losses (like fraud, credit monitoring costs) and sometimes non-economic damages (like stress), often under federal or state laws like HIPAA, GLBA, FCRA, or CCPA, with amounts varying from small cash payments to significant reimbursements depending on documented harm.
Do I need a lawyer for a data breach settlement?
Take action quickly because the sooner you fight back, the better your chances of recovering damages. The first step you should take is to consult an expert attorney to go after liable parties and seek compensation on your behalf. How Long Does a Data Breach Lawsuit Typically Take?
How much money do the data breaches give you?
Data breach payouts come from class-action settlements, offering compensation for documented losses (often up to $5,000 or more) or smaller alternative payments (e.g., $85) for simply being affected, plus services like dark web monitoring, with final amounts depending on claim volume, but specific payouts vary by breach (e.g., AT&T, Equifax) and require filing claims through settlement websites by deadlines.
What are my rights after a data breach?
Your Rights After a Data Breach
Under state privacy and data protection laws, you typically have the following rights. Right to know. You often get the right to request that a company disclose the sensitive information about you that they collect, use, or disclose, as well as information about data practices.
What is the average payout for a data breach?
Average compensation for data breaches varies widely, from modest payouts of a few hundred dollars in class actions (like $100-$599) to thousands for documented losses (like AT&T's up to $7,500), depending on the breach's severity, type of data exposed (SSNs pay more), proven financial harm, time spent, and company negligence. While some major settlements offer cash, many involve credit monitoring, but substantial claims require strong evidence of actual losses, like identity theft or fraudulent charges.
Can I sue because of a data breach?
You can't sue just because your email got leaked. But when a company's negligence causes measurable harm, it crosses into personal injury territory. You may have a case if you experience: Identity theft or credit fraud linked directly to the breach.
How are damages calculated in breach cases?
These damages are designed to compensate the non-breaching party for the financial losses they incurred due to the breach. The calculation typically involves determining the difference between the value of what was promised in the contract and what was actually received.
Can someone access your bank account if they have your SSN?
Most people aren't eligible to change their SSN, which is why, once again, it's important to detect the red flags and know how to identify signs of suspicious activity. If someone steals your SSN, they can use it to: Secure employment. Open bank accounts or obtain credit cards.
Is it a good idea to freeze your Social Security number?
Yes, you should consider locking your Social Security number (SSN) to protect against identity theft, especially employment fraud, by using the government's E-Verify system, as it prevents unauthorized individuals from using it to work or claim benefits, but remember this is different from a credit freeze and you'll need to temporarily unlock it for legitimate new employment. Locking your SSN via the Department of Homeland Security (DHS) blocks its use for E-Verify, stopping someone from getting a job in your name, and you can manage it through your myE-Verify account, unlocking it when needed.
Can I check to see if my SSN has been compromised?
To check for SSN identity theft, review your free credit reports at AnnualCreditReport.com, create a my Social Security account at ssa.gov to track earnings, and check your IRS records via IRS.gov/IdentityTheft for tax fraud, looking for unfamiliar accounts, jobs, loans, or tax filings. Report any discrepancies to the FTC at IdentityTheft.gov for a recovery plan and consider freezing your credit with the major bureaus to prevent new accounts.
What is the average settlement for a data breach?
Average compensation for data breaches varies widely, from modest payouts of a few hundred dollars in class actions (like $100-$599) to thousands for documented losses (like AT&T's up to $7,500), depending on the breach's severity, type of data exposed (SSNs pay more), proven financial harm, time spent, and company negligence. While some major settlements offer cash, many involve credit monitoring, but substantial claims require strong evidence of actual losses, like identity theft or fraudulent charges.
How long does it take to resolve a data breach?
According to IBM's 2024 data security report, companies take 258 days on average to identify and contain a breach. That's over half a year! Some types of attacks take even longer.
How to calculate settlement pay?
The general formula for an injury settlement is: (Medical Expenses × Multiplier) + Lost Wages. Medical expenses and lost income are considered economic damages and are typically well-documented. The multiplier accounts for non-economic damages like pain and suffering and varies based on how serious the injury is.