Push payment fraud arising from data breaches

In the wake of data breaches, the exposure of personal information can make victims vulnerable to becoming the targets of scammers and fraudsters. Compromised contact details or bank account information could be used by cybercriminals to extract further personal information and money from the victims that they target. Push payment fraud is among the various types of crimes that data breach victims could be targeted with.

When we disclose our data to third-party organisations, we do so in the belief that they will do their utmost to protect it. However, too many data controllers fail to recognise the importance of data protection and fail to comply with the law. Even the most basic of security errors could cause victims to have their information made vulnerable to misuse by cybercriminals.

If you have fallen prey to push payment fraud following a data breach, you may be able to claim compensation for your involvement, and for the emotional and/or financial impact of the incident. To find out more, contact us for free, no-obligation advice on your potential data breach claim.

What is push payment fraud?

Push payment fraud, also known as authorised push payment fraud, can occur when victims are deceived into transferring money directly into the bank accounts of scammers. Scammers often use an element of danger to trick victims into quickly handing over money. For example, they may claim to be your bank, pretending that your account has been compromised and that your savings need to be transferred immediately to prevent theft.

Victims can end up losing huge amounts of money as a result of push payment fraud. Although some banks can act quickly to restrict fraudsters’ efforts, some of the lost money may be irretrievable.

How can data breaches cause fraud?

Whether they involve hacks or unintentional security errors, data breaches often cause private information to reach the hands of cybercriminals. The risk of cybercrime is already significant, but the errors or negligence of data controllers could expose data breach victims to risks that they would not have encountered otherwise.

Even where criminals do not gain access to financial information, they can use contact details to target victims with scams. In push payment fraud, a simple phone number or email address can give fraudsters the opportunity to extort money by passing themselves off as a legitimate company, convincing you with the details they have for you. This is something that occurred in the wake of the TalkTalk data breach that we represent people for, with scammers using exposed information (possibly obtained from the breach) to target customers while passing themselves off as TalkTalk.

Fraud and data breach claims

If you have been subjected to push payment fraud in the wake of a data breach, the data controller responsible for compromising your personal information may have played a role in making you susceptible to the fraud. As a result, you may be eligible to recover compensation for the financial impact suffered, as well as for any distress caused.

As scammers and fraudsters become more sophisticated with their methods, data controllers must ensure they are doing everything they can to protect their customers, members, or employees from these risks. We can use our leading expertise in data breach claims to ensure that companies are held to account when they fail to provide this security.

If you have been affected by fraud as a result of a data breach, contact us for free, no-obligation advice on your potential claim.

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