Cybercrime is one of the most significant threats facing companies today. With the average cost of a data breach reaching an all-time high of $4.24 million, the business case for cybersecurity has never been stronger. Still, some businesses seem to misunderstand the urgency of meeting current cybersecurity standards.
It may help to consider the legal consequences of poor cybersecurity. While the United States has no comprehensive nationwide cybersecurity law, American companies can still face legal trouble if they fail to meet certain standards. Various state, industry, and international regulations still apply to many businesses.
Understanding how cybersecurity standards affect companies’ legal standing can help encourage tighter security. In that spirit, here’s a glimpse at how failure to meet various regulations can result in legal consequences.