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Legal Recourse for Victims of Data Breaches Leading to Identity Theft

It’s almost impossible to live in the 21st century and not give businesses access to our personal information. This includes our addresses and phone numbers when subscribing to free websites. It also includes more sensitive information like our credit card numbers and even our social security numbers when making high dollar purchases like renting an apartment or getting a car loan.

Unfortunately, data breaches have also become a fact of modern life. While businesses may put forth some effort to protect your sensitive data, skilled hackers still manage to breach security systems. In some cases, this is the result of years of learning and practice. Even the most sophisticated security measures can fall prey to hackers. In other instances, businesses are negligent in their duty to protect your data. They may think their outdated security software is still effective. They may also have failed to protect against common hacking techniques, or not have used sophisticated enough software.

If a data breach happens, it can easily lead to identity theft. In the event your identity is stolen, you may be able to take legal action against the people responsible.

What is Considered a Data Breach in the State of California?

A data breach occurs when an unauthorized individual or individuals, usually a hacker, gains access to your personal and confidential information. Most of the time, hackers obtain this information to use for financial gain. Examples of information hackers might steal during a data breach include:

  • Social Security Numbers
  • Driver’s License and Passport numbers
  • Debit and Credit Card Numbers
  • Bank Account and PIN Numbers
  • Email Addresses and Passwords

Hackers will usually use this information to commit what is known as identity theft. Identity theft is a crime under California law. Someone commits identity theft when they “willfully obtains personal identifying information… of another person, and uses that information for any unlawful purpose, including to obtain, or attempt to obtain, credit, goods, services, real property, or medical information without the consent of that person.”

Identity theft is also a violation of federal law. Federal laws covering identity theft include but are not limited to:

  • The FTC Act
  • The US Privacy Act of 1974
  • The Gramm-Leach-Bliley Act
  • The Fair Credit Reporting Act

One of the most common ways people commit identity theft is by using a social security number and driver’s license to go online and open up a credit card in someone else’s name. Then they use this credit card to make multiple purchases. Because the credit card is in someone else’s name, the innocent person will then be held responsible for paying back the value of those purchases. People can also use information obtained in identity theft to purchase bus or train tickets in order to travel using someone else’s identity. They may even use passport data to purchase plane tickets to travel outside the United States.

Can I Be Held Responsible for Purchases Made With My Stolen Identity?

The short answer is yes. Credit card companies, retailers, banks, and businesses have no idea of knowing if a purchase is being made using stolen data. This is especially true if a thief has stolen a credit card number or bank account information that already belongs to you. If they make purchases using this information there is no way to tell if it was really made by you.

Many times, banks and credit cards will have fraud protocols in place. These identify suspicious activity, like multiple, high-dollar purchases or purchases made far away from where you live. In the event this happens, many banks and credit cards will freeze the transaction so you will not be held liable. However, sophisticated thieves know techniques to get around fraud detection. This can include making one or two high-dollar purchases at businesses near your home address, or making several small dollar purchases that would not appear fraudulent.

Even though you may initially be held financially responsible by banks, credit card companies, and other businesses, you are not legally responsible. However, you may need to prove you did not make the purchases.

What Legal Recourse Do I Have if My Identity Has Been Stolen?

It is possible to clear your name after an identity theft. However, this can be a time-consuming process. Because identity theft is a crime you must notify the proper authorities. This includes the police department where any fraudulent purchases were made. It also includes contacting the Federal Trade Commission. You will probably need police and FTC reports to help clear your name.

You will also need to contact your credit card company, your bank, and any other business or organization where your data was compromised. An experienced consumer protection attorney can help you navigate this process. They can also deal with collection agencies and the credit bureau.

Depending on the circumstances of the data breach, you may be able to file a lawsuit to clear your name. If it can be proven a business was negligent in their duties to keep private information secure, you may be entitled to financial compensation.

If you or a loved one have been the victim of identity theft, don’t hesitate to contact the attorneys at Khosroabadi & Hill, APC today. We’re located at 3550 Camino Del Rio N #303, San Diego, CA 92108, five miles South of Montgomery-Gibbs Executive Airport and twelve miles Southwest of Gillespie field. Our attorneys know how stressful identity theft can be.

We’ll help you navigate getting your life back on track. We can contact credit card companies, businesses, and more on your behalf so you don’t have to. We’ll also help you identify

if anyone can and should be held liable for your data breach, and handle filing any lawsuits to help you recoup losses or damages.
Identity theft is one of the most stressful things that can happen to a person. Restoring your financial security, identity, and peace of mind is a long and complicated process.