GDPR: Data Breach Notification and Communications

CPC&
GDPR: DATA BREACH
NOTIFICATION &
COMMUNICATIONS
AN INTRODUCTION
© Charlie Pownall/CPC & Associates 2017. All rights reserved
January 2018

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Overview
• Governs the way organisations across the EU process, store, and protect
customers’ personal data
– Takes effect on May 25, 2018
• Replaces national legislation, complementary to other EU legislation
– NISD/Cybersecurity Directive, 2016 (for Essential Service/Digital Service Providers)
– Privacy and Electronic Communications Directive, 2003
– E-Privacy Directive, 2018 (digital marketing, cookies)
• Broad definition of personal data
– PII: name, date of birth, gender, height, weight, telephone number, postal address,
email address, passport number, social security number, driving license number, IP
address, location data, cookie data, RFID tags
– Sensitive or SPII: medical, genetic, biometric, race, ethnicity, political or religious
beliefs, sexual preference
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Overview (2)
• Companies must set ‘reasonable’ levels of protection of personal
data
– Data Protection Officers
– Data Protection Impact Assessments
– Codes of Conduct
– Anonymisation, pseudonymisation, encryption
• Strengthens personal rights of EU citizens, including:
– Data access
– Rectification
– Erasure (cf. Right to be Forgotten - pdf)
– Portability
– Objection
– etc
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Overview (3)
• Requires organisations to notify a breach
– To regulator: where it is likely to result in a risk to the rights and freedoms of
individuals
– To affected individuals: where it is likely to result in a high risk to their rights and
freedoms
• Applies to all organisations across operating in and/or collecting
personal data in the EU
• Tiered fines up to EUR 10m or 2% of annual turnover
• Regarded as international gold standard
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Transparency obligations
Data protection-related information and communications must be:
– Concise, transparent, intelligible and easily transparent
– Easily accessible
– Clear and in plan language
– In writing or by other means
– May be provided orally
– Free of charge
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Data breach notification – regulator
• Mandatory notification within 72 hours of discovery of a breach
– To the relevant competent supervisory authority/regulator
– ‘Without undue delay’ for data processors
– Reasons for any delay beyond 72 hours must be explained
• If the breach poses a likely risk/high risk to the rights and freedoms
of individuals
– Physical, material or non-material damage
– Loss of control over personal data, limitation of rights, discrimination, identity
theft or fraud, financial loss, unauthorised reversal of pseudonymisation, damage
to reputation, and loss of confidentiality of personal data protected by
professional secrecy
– Other significant economic or social disadvantage to impacted individuals
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Data breach notification (2)
• ‘A breach of security leading to the accidental or unlawful
destruction, loss, alteration, unauthorised disclosure of, or access to,
personal data transmitted, stored or otherwise processed’ *
• Types of personal data breaches
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Breach type Description
Confidentiality Unauthorised or accidental disclosure of, or access to,
personal data
Availability Accidental or unauthorised loss of access to, or destruction
of, personal data
Integrity Unauthorised or accidental alteration of personal data
* Source: GDPR Article 4(12)

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Data breach notification requirements
Notification to supervisory authority should contain:
• Categories and approximate number of individuals involved
• Categories and approximate number of personal records involved
• Name and contact details of Data Protection Officer or other contact point
• Description of the likely consequences of the breach
• Description of the measures taken, or proposed to be taken, to address
the personal data breach, including, where appropriate, measures taken
to mitigate its possible adverse effects.
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Data breach notification - exceptions
• If the personal data is unintelligible and where a copy or back-up
exists
• Where personal data is already publicly available
• If notification is considered ‘disproportionate’ to the actual or
potential damage
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Data breach notification - grey areas
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• Timing
• Level of risk
• Loss of data availability

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Timing
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• Reasonable degree of certainty that a security incident has occurred
that has led to personal data being compromised
– Scenario 1: In the case of a loss of a CD with unencrypted data it is often not
possible to ascertain whether unauthorised persons gained access. Nevertheless,
such a case has to be notified as there is a reasonable degree of certainty that a
breach has occurred; the controller would become “aware” when it realised the
CD had been lost.
– Scenario 2: A third-party informs a controller that they have accidentally received
the personal data of one of its customers and provides evidence of the
unauthorised disclosure
– Scenario 3: A controller detects that there has been a possible intrusion into its
network. The controller checks its systems to establish whether personal data
held on that system has been compromised and confirms this is the case
– Scenario 4: A cybercriminal contacts the controller after having hacked its system
in order to ask for a ransom.

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Timing (2)
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• Delayed notification
– Reason for delay must be explained if not made within 72 hours
– Scenario: where a controller experiences multiple, similar confidentiality
breaches over a short period of time, leading to a ‘bundled notification’
• Breaches in more than one EU state
– Controller should notify the relevant lead supervisory authority
– Example: Facebook to notify the supervisory authority in the Republic of Ireland
of breaches impacting personal data across multiple EU states
• For data processors
– Recommends immediate notification by processor to data controller
– The controller is considered aware once the processor has become aware

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Timing (3)
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• Customer/affected individuals notification
– Is required ‘in certain cases’ – ie. if special categories of personal data are
disclosed online and/or where there is a high risk to rights and freedoms of the
individuals impacted
– The principal objective is ‘to provide specific information about steps [affected
individuals] can take to protect themselves’
• Contacting individuals
– Information should be communicated directly
• Email, SMS, direct message, prominent website banners or notification, postal communications, print
media advertisements
– Press release or corporate blog post is considered inadequate
– Should not accompany other information (newsletters, etc)
– Should be in the relevant local language
– Supervisory authority can be contacted for advice on appropriate channels and
formats

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Data breach notification information
Notification to affected individuals should contain at least the
following information:
• Description of the nature of the breach
• Name and contact details of data protection officer or other contact point
• Description of the likely consequences of the breach
• Description of measures taken, or proposed to be taken, to address the
breach, including, where appropriate, measures taken to mitigate its
possible adverse effects.
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Level of risk
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• Determination of level of risk to the rights and freedoms of
individuals
– Risk exists: identity theft or fraud, financial loss, damage to reputation,
discrimination, emotional distress, etc
– High risk exists: racial or ethnic data, political opinion, religion or philosophical
beliefs, trade union membership, genetic data, health, sex life, criminal
convictions and offences
• Type of breach
– eg. Confidentiality vs availability breach
• Nature, sensitivity and volume of personal data
– Isolated data may cause harm, but different kinds of data can be used together
for data theft, fraud, etc
– Data indicating customers are on holiday

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Level of risk (2)
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• Ease of identification of individuals
– Ease with which individuals can be identified directly or indirectly by matching
data with other information
– Identification may depend on the context and type of breach
• Severity of consequences to individuals
– Motivation of and trust in people or organisation(s) finding and/or using the data
– Likely impact over time for individuals
• Special characteristics of the individual
– Children and vulnerable individuals are at greater risk
• Special characteristics of the data controller
– eg. medical organisations

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Loss of availability
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• Permanent vs temporary loss of availability
– Where data has been deleted either accidentally or by an unauthorised person, or, in
the example of securely encrypted data, the decryption key has been lost. In the event
that the controller cannot restore access to the data, for example, from a backup, then
this is regarded as a permanent loss of availability.
– Significant disruption to the normal service of an organisation, for example,
experiencing a power failure or denial of service attack, rendering personal data
unavailable, either permanently, or temporarily.
• Notification of temporary breaches
– If critical medical data about (hospital) patients are unavailable, even temporarily, this
could present a risk to individuals’ rights and freedoms; for example, operations may
be cancelled.
– Conversely, in the case of a media company’s systems being unavailable for several
hours (e.g. due to a power outage), if that company is then prevented from sending
newsletters to its subscribers, this is unlikely to present a risk to individuals’ rights and
freedoms.

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Loss of availability (2)
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• Other impacts
– Infection by ransomware (malicious software which encrypts the controller’s
data until a ransom is paid) could lead to a temporary loss of availability if the
data can be restored from backup. However, a network intrusion still occurred,
and notification could be required if the incident is qualified as confidentiality
breach (i.e. personal data is accessed by the attacker) and this presents a risk to
the rights and freedoms of individuals.

1. Understand GDPR scope and principles, and notification
requirements, grey areas and best practices
– How GDPR relates to other EU and national data protection laws and
obligations
– Legal updates, relevant European Commission/UK ICO GDPR working parties
2. Educate Leadership, Legal, IT, security and other stakeholders
– Customer and stakeholder privacy needs and expectations
– Cyber/data breach reputation trends, risks and impact
– Role of communications in data breach preparation and response
3. Ensure PR/communications is formally represented on relevant
company committees and teams
– GDPR, Data breach, Cybersecurity, etc
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For PR/communications teams
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4. Work closely with Legal, IT and security to develop or update
company cyber/data breach response plans
– Assess and prioritise different types of data breach risks to your
organisation, including the reputational risks to your organisation, and for
the individuals impacted
– Develop communication plans for different types of data breach, including
key messages, priority and secondary audiences, order and timing
(regulators, customers, employees, investors, etc), format, channels
– Consider the reputational risks of not disclosing different data breach risks,
taking into account:
• The risks of actual or perceived cover-up
• Likely negative customer and stakeholder reaction
• Possibility of regulator investigation
– Ensure your response plans are comprehensive, clear, practical, and fit for
purpose
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For PR/communications teams (2)
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For PR/communications teams (3)
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5. Test and update your plans regularly
– Protocols and processes
– Messaging and content
– Digital/social media dialogue and feedback
– Leadership and team dynamics.

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Useful resources
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Documents
• General Data Protection Regulation
• Article 29 Working Party - Guidelines on Data Breach Notification
• Article 29 Working Party - Guidelines on Data Protection Impact Assessment
• ENISA - Data Breach Severity Methodology
Organisations
• European Commission
• UK ICO
• The Law Society
• CIPR
• IAPP

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Further Information
+44 20 3856 3599
+44 (0)7973 379 989
cp@charliepownall.com
charliepownall.com
CPC&

GDPR: Data Breach Notification and Communications

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