What should you be doing to avoid fines in terms of data privacy and data compliance?

Data security concerns have been part of daily business ever since. But since getting ahead of the generative AI revolution, the concern over data compliance as well as data protection are growing. In 2023, because of the EU‘s AI regulation ahead, the compliance and the protection of data that were always hot topics reached a new level. It is point-clear that since the adoption of the EU’s GDPR in 2018 the year 2023 will be the most challenging for the industry. The GDPR by the European Commission was regarded to be the widest-reaching data privacy regulation, and of course also the most aggressive one. One of the most challenging issues in that context is the inherently complexity of the compliance with multiple laws. Since then, third-part countries have adopted similar laws. More countries are following. The U.S.-based companies had to react quickly in order to maintain compliance.

The Data Protection Authorities are in charge of controlling data compliance and data protection. The Data Protection Regulation (GDPR) provides different options for the following scenarios:

• infringement
• likely infringement

The Infringement of data compliance is regarded to be very serious. Therefore it includes either a temporary or definitive ban on processing and a fine of up to €20 million or 4% of the business’s total annual worldwide turnover or a reprimand. Nevertheless, there is also the possibility that the DPA only imposes a monetary fine instead of the reprimand or ban on processing. Furthermore the DPA may do so instead or in addition to the fore-said. Which possibility will be finally chosen, depends on the situation. For the likely Infringement only a warning will be issued, but should be taken seriously.

What will be taken into account by the DPA?

The factors of the infringement that count are like the following:

• Its negligent or intentional character
• The duration, the gravity, and the nature
• The damage caused to individuals
• Any action for mitigation taken
• The degree of cooperation

It is the authority’s responsibility to make sure that the fines imposed are dissuasive, proportionate, and effective.

What issues will be considered in case of a data loss?

The GDPR was set into force, because almost the entire business life takes place on the Internet. That is why more and more problems occur and measures have to be taken to minimize the risk of losses and damages to individuals as well as companies or organizations. That is why, in the event of a cyberattack, the company has to ensure the safety of data. In case of an attack, the DPA will check whether the company or organization in question has taken appropriate technical measures or not. Therefore, the supervisory authority will consider the following factors, before deciding what corrective tool should be used:

• The seriousness of the deficiency in the IT system
• The duration of exposure of the IT infrastructure to the risk
• Were tests carried out for the prevention of such attacks?
• How many customers‘ data had been disclosed or stolen?
• What type of personal data and/or sensitive data was concerned?

The supervisory authority has to consider all those factors and much more, before handing the case over to the DPA to make a final decision. The factors and fines in question are given by the GDPR are stated in Articles 58, 60, 83 and 84 and Recitals (129), (148), (150) as well as (151) of the Regulation (EU) 2016/679, 3 October 2017. 

With more and more problems popping up on the screen, lots of experts developed measures to avoid them like heyData. The easiest way to do so is through a holistic data privacy management system. Internal training raises awareness for data protection as well as data compliance in the company. Highly efficient IT security cuts down on costly data breaches. To avoid any misunderstandings, get the user’s permission to use their data. Erasure deadlines should always be observed. TOM is one of the most important issues to take into consideration. That means you should take technical and organizational measures at all times. Data collection should always be authenticated and implement the right to be forgotten. Private information of employees has to be taken seriously, too and not processed at all. In case of any doubt, you should always contact your data protection officer.

Some years ago, the penalty for an infringement was less expensive than the data protection measures. In 2023, the table turned completely. A violation of the GDPR is painfully expensive. Since the introduction of the regulation in May 2018, the severity and number of fines have increased quickly. Marriot UK had to pay over 110 million euros, H&M Germany 35 million euros, Österreichische Post 18 million euros, and Deutsche Wohnen Germany 14 million euros.

 In order to avoid those fines, a data security officer or an external company has to make sure that all updated laws, security standards such as ISO 27001, NIST, HIPAA, GDPR as well as regulations, are taken seriously. A proactive approach to compliance audits by enforcing compliance regulations and laws is an easy, but very effective way. It also changes the behavior of employees by making them visible to users. Data is anonymized  which helps a lot. Individual user profiles take care of how data is used and accessed and provide optional anonymization for privacy. Activity monitoring is another way to protect your data and systems from those who are already allowed access to sensitive systems and data. Continuous monitoring by security operators  guarantees visibility into data access, system use, and user behavior by search on the browser, connection device, USB, file, and much more.

Automated remote or offline enforcement  guarantees the employee’s adherence to corporate policies such as the Information Security Policy (ISP) and Acceptable USE Policy (AUP). Threats can be mitigated and minimized by data minimization techniques. Out-of-the-box policies that are configurable for cyberhygiene, data tracking and malicious activity make life much easier. Automated reporting assesses the effectiveness of any security controls and identifies possibilities for improvement.

Avoiding fines in terms of data compliance and data privacy  are not such a big deal if some efficient measures are taken. The adherence of data protection and data compliance is important to everybody. The fines, as you can see above, are extremely high, especially for SMEs. Data privacy and data compliance are difficult IT fields, but with the proper information and the right expert, it can be adhered to, and fines avoided. Some of the above-mentioned tools enable you to take precautions and to establish good ground and basis to work on. Therefore, it is very important for you to take appropriate measures in time.

Don’t forget to subscribe to our email newsletter to get more data protection and compliance updates and latest blogs delivered right to your inbox