In an era where businesses rely heavily on digital systems, a data breach: the unauthorised access, disclosure, or loss of personal information such as customer names, addresses, financial details, or login credentials, can have serious consequences. Beyond the immediate disruption, a breach can damage client trust, attract regulatory scrutiny, and expose a business to significant financial and reputational harm.

The fallout can also extend to contractual liabilities, litigation risk, and long-term operational challenges if the root cause is not properly addressed.

Knowing the right legal steps to take in the aftermath is crucial to limit damage and ensure your organisation remains compliant with its obligations under data protection law.

1. Identify and contain the breach

The first and most urgent step is to contain the breach and prevent further data loss. Your IT or cyber response team should:

· Secure affected systems and accounts.

· Preserve digital evidence for forensic investigation.

· Reset passwords and review access controls.

Prompt action demonstrates diligence and may reduce both operational impact and regulatory risk. It also helps ensure that subsequent investigative actions are based on accurate information rather than evolving or worsening system compromise.

2. Assess the scope and impact

Once the breach is under control, conduct a full investigation to establish:

· What type of data was affected (e.g. personal, financial, or confidential business information).

· How many individuals or entities were impacted.

· The potential risks or harm to those affected.

This assessment will shape your legal response, guide notifications, and help identify any systemic weaknesses. You should also record all details as expected by the ICO, to help demonstrate accountability.

A thorough assessment often involves internal interviews, forensic analysis, review of access logs, and reconstruction of timelines. Understanding whether data was merely accessed or actually exfiltrated can influence both the level of risk and the required legal notifications. Proper documentation is essential; regulators often request detailed evidence of decision-making, even months after the incident

3. Decide if you need to notify the ICO

Under the UK GDPR and Data Protection Act 2018, organisations must report certain personal data breaches to the Information Commissioner’s Office (ICO) within 72 hours of becoming aware of them.

You should notify the ICO unless the breach is unlikely to result in a risk to the rights and freedoms of individuals.

If you do report the breach, your notification should include:

· A description of the nature of the breach and affected data categories.

· The number of individuals concerned.

· Likely consequences and steps taken to address them.

· Contact details for your data protection officer or key contact.

It is also good practice to document why you chose not to report, should you conclude that notification is unnecessary. Regulators expect a well-reasoned, evidence based justification, and failure to document your reasoning can be viewed as a compliance failure in itself.

4. Notify affected individuals

If the breach is likely to result in a high risk to individuals, for example if financial or identification data has been exposed, you must notify those individuals directly and without undue delay.

Your communication should be clear, transparent and practical. It should explain:

· What happened and what data was involved.

· The potential risks to them.

· What steps your business is taking to address the issue.

· What actions they can take to protect themselves (such as changing passwords or monitoring accounts).

Notifying affected individuals promptly can help mitigate harm and preserve trust.

5. Review Contracts and Policies

After addressing the immediate incident, review your contractual and policy obligations.

· Examine supplier and processor agreements for data breach notification requirements and liability provisions.

· Assess whether any third-party vendors contributed to or were affected by the incident.

· Ensure staff receive updated training on data protection responsibilities.

This review helps clarify financial accountability, strengthen compliance with contractual obligations, and reduce the risk of future breaches.

It is also advisable to revisit your organisation’s incident response plan, update risk assessments, and consider whether additional technical or organisational measures such as multi-factor authentication, enhanced encryption, or improved access governance, are required.

Berry Smith’s Bottom Line

A data breach can test the resilience and integrity of any organisation. How you respond, both in the critical first hours and in the weeks that follow, can make the difference between a recoverable setback and lasting reputational damage. By acting swiftly to contain the breach, fulfilling your legal reporting duties, communicating transparently with those affected, and reviewing your contracts and internal policies, your business can demonstrate accountability and rebuild trust. Taking these steps not only ensures compliance with data protection law but also strengthens your organisation’s overall security posture for the future.

If you are looking for data protection guidance and advice, get in touch with us today on 02920 345511 or at commercial@berrysmith.com.