Can companies be held liable for data breaches caused by their employees?

Yes, companies operating in South Carolina can be held liable for data breaches caused by their employees. South Carolina has laws in place to protect the citizens of the state from data breaches, including the South Carolina Identity Theft Protection Act. This law states that businesses must report any unauthorized use of their customers’ private information, including data breaches, within 45 days of becoming aware of the incident. Businesses may also be liable under common law for employee-caused data breaches. This means that customers can file a lawsuit against the business for its failure to safeguard their data. In this case, customers must prove that the business acted negligently and failed to use reasonable efforts to protect their data. Additionally, some companies may be subject to regulations such as HIPAA, which requires implementing safeguards to protect private health information. If a company is found to be in violation of such a law, then the company can be fined and/or forced to pay for damages caused by the data breach. In short, South Carolina has laws in place to protect citizens from the unauthorized use of their private information, and businesses operating in the state can be held liable for data breaches caused by their employees.

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