data compromise
Definition
A data compromise happens when someone gains unauthorized access to sensitive information your business stores, such as customer names, credit card numbers, or passwords. This can happen through hacking, a stolen laptop, a dishonest employee, or even accidentally sending information to the wrong person.
Example
If a hacker breaks into your online store's database and steals 500 customers' credit card numbers, that is a data compromise, and you will likely be required by law to notify those customers.
Watch Out
Most states have breach notification laws that force you to alert affected customers within a specific time window after you discover a data compromise, and missing that deadline can result in serious fines.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.