Final answer:
After a data breach, organizations face legal costs including defense in lawsuits, claim settlements, regulatory fines, forensic investigations, cybersecurity improvements, and efforts to manage reputational damage. These costs highlight the need for robust online privacy and security to mitigate the impact of cyberattacks.
Step-by-step explanation:
When a cyberattack involving a data breach occurs, such as the one in 2016 where private data was stolen, several additional legal costs are likely to be incurred. These costs stem from the many challenges that arise from breaches of this nature, including but not limited to identity theft, financial theft, possible threats to national security, required notifications to affected individuals, and legal actions that may follow.
Businesses and organizations are subject to a variety of state and federal laws that protect personal cyber data, therefore, a breach can result in hefty fines and penalties if the organization is found to have been negligent. The need to engage legal counsel for defense in lawsuits, costs for settlement of claims with affected individuals, and possible regulatory fines can significantly add to the financial burden. Furthermore, there are often substantial costs for forensic investigations to determine the breach's impact, improving cybersecurity measures to prevent future incidents, and public relations efforts to manage the breach's reputational damage.
Legal costs would also account for potential government investigations and legal actions taken by the state attorneys general or other regulatory bodies. These expenses underscore the importance of strong online privacy and security measures to safeguard against cyberattacks and highlight the extensive effects that a data breach can have on an organization.