Liability For Data Breaches Involving Employee Information

Even The Federal Government And Third Party Vendors Are Not Immune



The trends in data breaching have risen in the last decade. The breach to personal data ranges from disclosure of private information, cyber-attacks on the public fraternity to the use of personal identifiable information. Hacking of personal social accounts and technological gadgets such as computers and cell phones has been considered a significant threat to the information sector and players. Recently, the federal government has been the target to this menace affecting our contemporary society.

Several organizations have filed suits against the America Federation of Government, Office of Personal Management and Government Solutions for the mishandling of their information. The massive data breach has been noticed by the Office of personal management which is held accountable for the data breach. The plaintiffs have been the prospective employees both former and current who have been and are being affected by the trending menace. The plaintiff intentions are to seek the recovery of damages for the damages that they are suffering as they continue to realize the probabilities of increased suffering in the near prospect.


Costs related

Costs related to breach of personal data

The plaintiff outlines that there are many associated costs that come with the breach of information. These costs are related to detection costs, prevention and recovery from identity theft and unauthorized use of medical and financial accounts. The plaintiff are forced to put up credit monitoring and obtain credit reports as often as possible to ensure they accounts are carefully monitored.

There is also the opportunity costs correlated with putting viable preventive measures to deal with the current information pandemic. More of plaintiff time is also lost in researching the various ways to deal with the situation in the event of breach of data and finding measures to prevent, contest detect and recover from the misuse of identity and healthcare data.

Additional costs that come with dealing with the breach of data include the unavailability of flagged credit, or costs and the complete denial of the use of personal credit. The freezing and the unfreezing of personal credits and all the penalties that result from the unavailability of flagged credit are additional costs to the information breach.

There are also future costs that relates to identifiable information and costs related to the prevention, detection and consternation against the compromised breach of data.


Plaintiff claims

Plaintiff claims

Plaintiff claims for breach of information and data include the violation of the Administrative Procedure Act and Privacy Act by the Office of personal management. The plaintiffs are also suing KeyPoint which is OPM contractor responsible for major background checks for the Office of Personal Management. They claim that KeyPoint owe the plaintiff a duty of care and are not responsible for maintaining and protecting the plaintiff personal identifiable information particularly the Office of Personal Management being the central target for cyber attackers. Nevertheless, there has been no advancement in Plaintiff OPM litigation due to the delayed notification for the occurrence of data breaches. OPM has been held liable since OPM had suspended the disclosing data to the plaintiff despite the existence of data breach a month ago.

So who are held liable for the breach?

The claims by the plaintiffs provide an extensive fetched explanation on those who are to be made responsible for the violation of data. The filfi8ng of the plaintiff openly provide a cautionary tale to the Employees that the entity that is liable in the event of a breach of data include the Employers and the government. Moreover, other third parties that may be involved include the company that is mandated to monitor individual information in this case KeyPoint who serve the Office of Personal Management.

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What needs to be done

Sever legislation should be put in place to mitigate against the breach of information. Besides, laws should be put in place to ensure information and notification for the breach of data should be provided to the employee within a specific time frame in cases of a data breach. Employees should also be made aware of laws that deal with handling the breach of data in the event of occurrence of a breach of data.

Companies should also have information security policy in case the States fails to offer security against breach of data. However, there has been a number of state data breach notification laws which provide a safe harbor for employers. These employees comply with the procedure regarding their own information security policies in the event of the breach which have not been helpful in anyway.

Employers should review all their data security measures and those of their vendors to whom they give the mandate to handle their employees’ identifiable information. These reviews assist in the identification and provision preventive measures against hackers to personal information. Companies should also leverage more efforts in protecting employees and consumer information.



This content was provided by Neches FCU, an Equal Employment Opportunity Employer Credit Union.

Neches FCU is a Texas credit union and has a superior team of professionals ready to deliver service their members. When the doors open at any of the 9 service centers, our core objective of “Ultimate Member Satisfaction” becomes the sole focus for every employee. They are well-respected for a personal, dynamic and enthusiastic work atmosphere, providing a memorable service experience, and where clients are known by name. Neches has approximately $438 Million in assets with over 45,000 members. Neches Federal Credit Union is acknowledged by members and the business community as one of the top credit unions in texas and an actively involved partner, helping our Family, Friends and Community!