Fines For Cybersecurity Breaches Going Up in 2018
New fines for cybersecurity breaches could cost U.K. businesses up to 122 million pounds by 2018 (approx. $155 million US). If this is happening in the EU and the UK will it follow in the US?
U.K. Businesses Face New Fines
A new report that cited the recent Payment Card Industry Security Standards Council (PCI) findings shows that substantial fines for cybersecurity breaches would go into effect with the new European Union Legislation. This will set penalties for these breaches at 4% of the global turnover (with a maximum of 18 million pounds, approx. $22.5 million US).
Brexit Won’t Stop the Fines
Despite noting that the U.K. will no longer be a member of the E.U. in 2019, the current Prime Minister Theresa May is planning to sign the current E.U. laws into effect within the U.K. and then move towards repealing those laws. This means that the new cybersecurity laws will be in force even after Brexit.
In 2015, 90% of large organizations had said they had security breaches. 74% of smaller-sized businesses also said they had experienced security breaches. Based on these reports, the PCI estimates that fines for cybersecurity breaches could reach as high 122 billion pounds. Of that 122 billion pounds, 70 billion would go against large companies. On average that would be 11 million pounds fined against each company. The remaining 52 billion pounds would go against smaller companies. The average fine would be nearly 13,000 pounds for each smaller company.
Can Business Survive the Cost?
“The new EU legislation will be an absolute game-changer for both large organizations and SMEs. The regulator will be able to impose a stratospheric rise in penalties for security breaches, and it remains to be seen whether businesses facing these fines will be able to shoulder the costs,” said Jeremy King, director of PCI.
Even with Brexit on the horizon, businesses will have to find solutions for cybersecurity breaches or face hefty fines.
The original version of this article originally appeared on PYMNTS.
