What liability might we be exposed to if a security flaw is discovered in our platform?

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Who is liable when a data breach occurs?

Source Article: https://legal.thomsonreuters.com/en/insights/articles/data-breach-liability

Aurora WDC Analysis: Businesses need to be prepared for the impact of security breaches. Since there is no perfect solution to ensure total security, businesses need to take steps to protect their data, as well as address the legal implications of a potential breach. “In a cloud environment, under U.S. law (except HIPAA which places direct liability on a data holder), and standard contract terms, it is the data owner that faces liability for losses resulting from a data breach, even if the security failures are the fault of the data holder (cloud provider).” The costs and liabilities could include: lawsuits, government investigations, audits, potential remodeling, potential malpractice and more.

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