cybersecurity violations

Cybersecurity Violations And Penalties

Cybersecurity violations have corresponding penalties. Yes, a breach of cybersecurity has a wide range of ramifications. You may lose clients and money. It affects your reputation and brand. IN some cases, can lead to lawsuits and litigation.

Many rules and regulations force businesses to meet minimum cybersecurity standards. Companies face severe fines, fees, penalties, and punitive consequences. Yes, if and when specified thresholds are not attained, resulting in a breach.

So, it’s critical to grasp the rules and penalties that apply. In return, you’ll completely comprehend the threats that cybersecurity poses.

Cybersecurity Laws For US Companies

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The laws that apply to your business are determined by the type of business you operate and the type of data you handle.

There are, however, broad federal cybersecurity rules that apply to a wide range of businesses, in whole or in part:

Health Insurance Portability and Accountability Act (HIPAA) of 1996

Almost every institution that works with medical information is subject to this law. The law specifies guidelines for the storage, access, and sharing of medical data.

Gramm-Leach-Bliley Act (GLBA) of 1999

This law applies to businesses that deal with personal and private financial information. The law establishes guidelines for when and how you gather and maintain information. Also, those who have access to it.

Homeland Security Act, which combined the FISMA of 2002

This law is comparable to the others in that it primarily affects organizations that deal with government data. Government agencies are primarily affected. But contractors and suppliers who collaborate with the government can be also.

Cybersecurity Information Sharing Act (CISA) of 2015

The goal of this law is to work together to respond to dangers rather than to preserve data. Also, the law empowers the government and digital corporations to share information. Thus, better identify and respond to threats.

Federal Exchange Data Breach Notification Act of 2015

Institutions that cooperate in a health insurance exchange need to notify affected individuals of any data breach within 60 days of the incident.


The severity of the penalty depends on the nature of the attack and the amount of data exposed. There are additional sanctions that go beyond fines and costs, such as public shaming, that will have a greater impact on some companies than others.

Violations of cybersecurity regulations, even in the best-case scenario, are costly and disruptive:


The fine is determined by the number of medical records that were disclosed. Fines can range from $50 to $50,000 per record. The maximum fine per year is $1.5 million, however, organizations may get the full amount for several years. Also, violators may face prison sentences ranging from one to ten years.


For each breach of this law, organizations can pay up to $100,000. Meanwhile, the officials and directors of the organization up to $10,000 personally. Also, individuals could possibly end up to 5 years in prison.


Because this rule primarily affects federal agencies, consequences might vary from formal congressional censure to reductions in public money.

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