Credit data is among the most sensitive information about a Floridian’s life and identity. When bad actors compromise and abuse it for their own ends, they leave victims feeling violated and helpless.
If a company’s negligence caused your credit data to be compromised, both Florida and federal law give you options to hold them accountable. The Boca Raton attorneys of Lehrman Law can thoroughly investigate what happened, work with subject matter experts to identify wrongdoing, and pursue fair compensation for your losses. Contact us today for a consultation.
What Is a Credit Data Breach?
Credit data breaches happen when an unauthorized party accesses sensitive personal and financial records from a business, banking institution, or credit bureau. Some of their potential causes include:
- Cyberattacks – A hacker may exploit vulnerabilities in the target organization’s computer systems to steal personal data.
- Insider threats – An employee or contractor with authorized access to personal data abuses their privileges.
- Misconfigured databases – An organization inadvertently exposes personal data due to poor security practices.
- Lost/stolen devices – A computer or hard drive with sensitive information falls into the wrong hands.
The scope of a data breach can include Social Security numbers, credit card and bank account details, driver’s license numbers, dates of birth, and your complete credit history.
No organization is immune to data breaches, no matter how big, reputable, or secure they seem.
- In 2017, hackers affiliated with the Chinese military exploited an unpatched security hole to steal over 147 million records from credit bureau Equifax.
- In 2019, a hacker accessed 80,000 bank account numbers and 140,000 Social Security numbers from credit card company Capital One. The breach was one of the largest in history, affecting roughly 100 million Americans and 6 million Canadian citizens.
- Also in 2019, a server vulnerability at title insurer First American exposed 885 million consumer documents to the public. The breach involved Social Security numbers, mortgage records, and personal IDs.
- In 2021, a hacker stole the Social Security numbers of over 76 million T-Mobile customers. The cell phone carrier recently paid the Federal Communications Commission (FCC) $31.5 million in fines to settle remaining investigations.
Your Rights After a Credit Data Breach in Florida
After a data breach, Florida Statute 501.171 requires companies to notify customers within 30 days of discovering a data breach. This notification must include information about what was compromised and the steps to protect yourself in the aftermath. If 500 residents or more were affected, the company must notify the state Attorney General.
You also have these rights after your credit data is compromised:
- The right to protect your credit report – You can place fraud alerts and security freezes on your credit reports under the federal Fair Credit Reporting Act (FCRA). Fraud alerts require creditors to take extra security steps before opening an account for you. Security freezes prevent credit bureaus from exposing your information without your express consent.
- The right to dispute fraudulent activity – FCRA also allows you to challenge fraudulent accounts, unauthorized transactions, and inaccuracies in your credit report.
- The right to report the theft – You can file a police report and submit an affidavit to the Federal Trade Commission (FTC) after a breach. These official records can support a future legal claim.
Can You Hold a Company Liable for a Credit Data Breach?
If a company’s wrongdoing led to a data breach, or if you can prove that it didn’t meet its legal obligations leading up to the breach, you may be able to file a civil lawsuit against them. These are some of the legal theories that may apply to a data breach claim, depending on the circumstances:
- Negligence – Companies must take reasonable security steps to protect customers’ personal information. If they fail to use these practices or ignore a vulnerability, they may be held liable for a resulting data breach.
- Breach of contract – In some cases, if a company makes specific promises about data security and then fails to honor those commitments, it could constitute a breach of contract.
- Consumer protection violations – The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) can apply to inadequate data security practices.
- Failure to provide proper notification – If a company doesn’t comply with mandatory notification laws after a data breach, it may face legal consequences.
- Breach of fiduciary duty – Financial institution executives are fiduciaries under the law. That means they must always act in their clients’ best interest, including through good data security practices.
After a data breach, there can be thousands or millions of potential claimants, so courts frequently certify these suits as class actions.
What Compensation Can Victims Pursue After a Credit Data Breach?
Depending on the circumstances of the case and the damages you’ve suffered, you can pursue these types of compensation after a data breach:
- Monetary damages – This can include reimbursement for the time and expenses spent restoring your credit, recovery for unauthorized transactions, and compensation for lost income or missed opportunities due to damaged credit.
- Statutory damages – The FCRA sets statutory damages for data breach cases. It and Florida law also allow courts to award attorney’s fees if your claim succeeds.
- Punitive damages – If a case involves severe negligence or misconduct, a court can award punitive damages to deter other companies from committing the same actions.
- Injunctive relief – Not all pieces of a successful data breach claim are monetary. A court may also order a company to implement security or data handling measures to prevent additional breaches.
Time Limit to File a Claim After a Credit Data Breach
In Florida, the specific amount of time you have to file a data breach lawsuit depends on the nature of the claim. For example:
For violations of the FCRA, you can file a lawsuit within 2 years from the date you discovered the violation or 5 years after the actual date of the violation, whichever comes first.
Remember that you might not discover identity theft right away. This does not extend the statutory filing period, and the clock will keep ticking. To best protect your legal options, consult an attorney as soon as you suspect your data was part of a breach.
Contact a Florida Credit Data Breach Attorney
The Boca Raton attorneys of Lehrman Law can protect your rights and legal position after a credit data breach. We’re a small firm that fights big cases, and have served as class counsel, trial counsel, and co-counsel in multi-million dollar cases against major corporations. We aim to apply our deep knowledge of Florida and federal consumer protection laws to defend your personal and financial well-being. Contact our office today for a case review.