If you are wondering how much compensation for a bank data breach you could receive, the answer depends on how the breach affected you. Compensation may be awarded for financial losses, psychological harm, or both, so no two bank data breach compensation claims are valued in exactly the same way.
Discovering that your bank has experienced a personal data breach can be unsettling. Whether you have received a notification from your bank, noticed suspicious activity on your account or are worried that your financial information has been exposed, it is natural to have questions about what happened and whether you could claim compensation.
To make a successful bank data breach claim, you will need to show that the data controller or data processor failed to comply with data protection law and that this failure caused your personal data breach. In most cases, the bank is the data controller because it decides how and why your personal data is processed, although it may use a data processor to carry out services on its behalf. Processing includes activities such as collecting, storing, sharing and using your personal data to manage your account, carry out credit checks or provide online banking services. A personal data breach occurs when a security incident leads to the accidental or unlawful destruction, loss, alteration, unauthorised disclosure of, or access to, your personal data.
At How Much Compensation, we understand that a bank data breach can affect more than just your finances. Concerns about identity theft, fraud or the misuse of your banking details can have a lasting emotional impact as well as causing financial loss. Our advisors can explain whether you could have grounds to claim compensation and, where appropriate, connect you with a solicitor from our panel to begin assessing your case.
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Here at HowMuchCompensation.co.uk our expert advisors are on hand 24 hours a day 7 days a week to assess your compensation claim. Should you require free advice we can connect you to a specialist solicitor.
Jump To A Section
- How Much Compensation For A Bank Data Breach Can I Claim?
- How Is Compensation For A Bank Data Breach Calculated?
- Can Financial Losses Be Compensated After A Bank Data Breach?
- Can I Claim For Bank Data Breach Compensation?
- What Types Of Bank Data Might Be Compromised In A Breach?
- How Might A Breach Of Bank Data Have An Impact?
- What Will I Need To Claim For Bank Data Breach Compensation?
- Why Claim After A Data Breach With An Expert From Our Panel Of Solicitors?
- More Information
How Much Compensation For A Bank Data Breach Can I Claim?
How much compensation for a bank data breach you could claim will depend on the psychological harm and financial losses caused by the personal data breach.
When valuing claims involving psychological harm, legal professionals often refer to the Judicial College Guidelines (JCG). This provides compensation guideline brackets for different levels of psychiatric harm and post-traumatic stress disorder (PTSD). They are not fixed compensation amounts, but they can help indicate how much may be awarded for the psychological effects of a personal data breach when considered alongside the individual circumstances of your claim.
The table below includes the JCG compensation brackets for psychiatric harm and PTSD. The first row is not taken from the JCG. Instead, it demonstrates how a successful bank personal data breach claim may include compensation for both severe psychological harm and the financial losses resulting from the breach.
| Mental Health Harm | Notes | Guideline Compensation |
|---|---|---|
| Very Severe Mental Health Harm Along With Financial Losses | Very severe, prolonged mental health injuries together with financial losses, including security costs, moving expenses and therapy. | Up to £250,000+ |
| Severe Psychiatric Harm | The psychological harm causes major difficulties with daily life, employment and relationships. Treatment is unlikely to achieve significant improvement and the long-term outlook is poor. | £72,440 to £152,900 |
| Moderately Severe Psychiatric Harm | Significant psychological symptoms continue to affect everyday life and work, although the long-term prognosis is more positive with appropriate treatment. | £25,190 to £72,440 |
| Moderate Psychiatric Harm | The person has experienced substantial psychological harm but has shown clear improvement by the time the claim is resolved, with a good overall prognosis | £7,740 to £25,190 |
| Less Severe Psychiatric Harm | Compensation reflects how long the symptoms lasted and the extent to which they affected daily activities and sleep before recovery. | £2,040 to £7,740 |
| Severe Post-Traumatic Stress Disorder (PTSD) | Permanent PTSD effects causes profound disruption to all aspects of life and prevents the person from functioning at, or close to, their pre-trauma level. | £79,080 to £133,000 |
| Moderately Severe Post-Traumatic Stress Disorder | Significant symptoms remain despite treatment, although professional support is expected to bring some degree of recovery over time. | £30,580 to £79,080 |
| Moderate Post-Traumatic Stress Disorder | Most symptoms have resolved and any ongoing effects are not expected to cause substantial long-term disability. | £10,810 to £30,580 |
| Less Severe Post-Traumatic Stress Disorder | A near full recovery is made within one to two years, with only minor symptoms continuing thereafter. | £5,220 to £10,810 |
If you would like an estimate of how much compensation for a bank data breach you could be awarded, speak to one of our advisors today. They can discuss how the personal data breach has affected you and, where appropriate, connect you with a solicitor from our panel to assess your claim.
We are here to help you
Here at HowMuchCompensation.co.uk our expert advisors are on hand 24 hours a day 7 days a week to assess your compensation claim. Should you require free advice we can connect you to a specialist solicitor.
How Is Compensation For A Bank Data Breach Calculated?
Compensation for a bank data breach is calculated by assessing the financial losses and psychological harm you have suffered because of the personal data breach. Financial losses are known as material damage, while psychological harm is referred to as non-material damage. Both may be considered when calculating how much compensation you could receive, depending on the circumstances of your claim.
The amount awarded will depend on the evidence available and the individual circumstances of your claim. When valuing non-material damage, consideration is given to the severity of your psychological harm, how long your symptoms have lasted and the extent to which they have affected your daily life.
Material damage is assessed by considering the financial impact the personal data breach has had on you, with evidence used to support any losses being claimed.
Every bank personal data breach claim is different, so compensation should reflect the full impact the breach has had on the individual. The panel of solicitors working with How Much Compensation can carefully assess your circumstances, ensuring that both your psychological harm and financial losses are taken into account when valuing your claim.
If you are unsure what your bank data breach claim could be worth, speak to an advisor. They can help calculate how much compensation for a bank data breach you could claim.
Can Financial Losses Be Compensated After A Bank Data Breach?
Yes, financial losses can be compensated after a bank data breach if they were caused by the compromise of your personal data. These financial losses are known as material damage.
As every claim is assessed on its own facts, you will need evidence showing that the losses resulted from the personal data breach rather than unrelated circumstances. A solicitor from our panel can help identify which financial losses may form part of your claim and obtain the evidence needed to support them.
Loss Of Earnings
The psychological impact of discovering that your banking information has been compromised can make it difficult to concentrate at work or continue working as normal. If the breach caused recognised psychological harm that resulted in time away from work, you may be able to recover the income you lost during your absence.
Therapy And Counselling Costs
Learning that your bank account details or other personal information have been compromised can have a lasting emotional impact. If you required counselling, cognitive behavioural therapy (CBT) or other recommended treatment because of the breach, these costs may be recoverable where they are supported by appropriate evidence.
Moving Costs
Banks process your home address as part of providing banking services. If your address was compromised in the breach and this created genuine concerns for your safety or privacy, you may incur moving costs. Where these costs arose because of the breach and are supported by evidence, they may form part of your claim.
Security Costs
Following a bank data breach, some people choose to take additional steps to help protect their personal data. Depending on the circumstances, reasonable costs such as credit monitoring services or additional home security measures may be recoverable where they were incurred because of the breach.
Financial losses are not always obvious straight away and can easily be overlooked if they are not properly identified. Speaking to an advisor could help you understand what losses may be recoverable before your claim is valued.
Can I Claim For Bank Data Breach Compensation?
You can claim bank data breach compensation if a failure to comply with data protection law led to your personal data being compromised and you suffered financial losses, psychological harm or both as a result.
To be eligible to claim compensation, you will need to show that:
- The bank, or another organisation processing your personal data on its behalf, failed to comply with the Data Protection Act 2018 and the UK General Data Protection Regulation (UK GDPR). These sit together as data protection laws.
- A bank data breach occurred, resulting in the accidental or unlawful destruction, loss, alteration, unauthorised disclosure, or access to your personal data. Under the UK GDPR, personal data is any information relating to an identifiable person
- You suffered material damage, non-material damage, or both because of the bank data breach.
Simply being notified that a bank data breach has occurred does not automatically mean compensation will be payable. Your eligibility will depend on the individual circumstances of your case.
If you are unsure whether you meet these eligibility criteria, speaking to an advisor can help you understand whether you could have grounds to claim before deciding what to do next.
What Types Of Bank Data Might Be Compromised In A Breach?
The types of bank data that might be compromised in a breach include your name, bank account details and contact information, along with other personal data your bank holds about you. Some banks may also process special category data where it is necessary for specific purposes, such as complying with legal obligations or providing appropriate support to vulnerable customers.
Examples of personal data a bank may process include:
- Your name, date of birth and contact details.
- Your home address and previous addresses.
- Bank account numbers, sort codes and account information.
- Mortgage, loan and savings account information.
- Credit check results.
- Online banking usernames and customer identification numbers.
- Copies of identity documents provided when opening or verifying an account.
In some circumstances, a bank may also process special category data, for example:
- Biometric data used to verify your identity.
- Information revealing your racial or ethnic origin where this is collected to comply with legal or regulatory obligations.
- Information about your health where you have disclosed it to request reasonable adjustments or additional support in managing your account.
If you believe your personal information may have been involved in a bank data breach, an advisor can explain whether the type of personal data affected could support a compensation claim.
How Might A Breach Of Bank Data Have An Impact?
A breach of bank data can affect you financially, emotionally and practically, depending on the type of personal data involved and how it has been misused. While some people experience temporary worry that improves once the situation is resolved, others may continue to experience psychological harm or financial difficulties long after the breach occurred.
In the short term, discovering that your banking information has been compromised can leave you feeling anxious and uncertain about the security of your personal data. You may spend time contacting your bank, changing security credentials or monitoring your accounts, while concerns about how your information could be used may disrupt your daily routine and affect your peace of mind.
For some people, the impact does not end there. Ongoing anxiety, a loss of confidence in banking or persistent concerns about the security of their personal data can continue to affect everyday life. Where recognised psychological harm develops, professional treatment or time away from work may be needed, increasing both the emotional and financial impact of the breach.
Every person’s experience is different. If a bank data breach has had a lasting effect on your wellbeing or finances, these consequences could influence how much compensation for a bank data breach you may be entitled to claim. An advisor can explain how the impact of the breach on you may be taken into account when assessing your claim.
What Will I Need To Claim For Bank Data Breach Compensation?
To claim bank data breach compensation, you will typically need evidence that a bank data breach occurred, proof that your personal data was affected and records showing how the breach caused you financial losses or psychological harm. You should also understand the time limit for bringing a claim and whether funding legal representation through a No Win No Fee agreement may be appropriate. The sections below explain each of these topics in more detail.
What Evidence Will I Need To Prove A Bank Data Breach Claim?
The evidence needed to prove a bank data breach claim could include a breach notification from the bank, medical evidence of any psychological harm and documents showing any financial losses caused by the breach. A solicitor from our panel could help you with gathering the following:
- A notification letter or email informing you of the bank data breach.
- Medical evidence supporting any psychological harm caused by the breach.
- A diagnostic letter from a therapist diagnosing your mental harm.
- Documents showing any material damage you have suffered, such as invoices and receipts.
- Any correspondence with the bank regarding the data breach.
Is There A Time Limit For Claiming Compensation After A Bank Data Breach?
Yes, there is a time limit for claiming compensation after a bank data breach, although the time available will depend on the circumstances of your case. You can contact our advisors to discuss your case and learn whether you are within the time limit to claim.
Bank Data Breach Compensation On A No Win No Fee Basis
The solicitors on our panel offer their legal services under a Conditional Fee Agreement (CFA), which is a type of No Win No Fee agreement governed by the Conditional Fee Agreements Order 2013. This means you can instruct a solicitor to pursue your bank data breach claim without paying for their work before your claim begins or while it is progressing.
If your claim succeeds, your solicitor will deduct a success fee from your compensation. This fee is a legally capped percentage that will be clearly explained and agreed with you before you enter into the agreement. If your claim is unsuccessful, you will not pay your solicitor for the work covered by the CFA.
If you would like to find out whether your bank data breach claim could be handled on a No Win No Fee basis, speak to one of our advisors. They can explain how a CFA works and, where appropriate, connect you with a solicitor from our panel.
Why Claim After A Data Breach With An Expert From Our Panel Of Solicitors?
Claiming after a bank data breach with an expert from our panel of solicitors means having someone who understands how these claims are investigated, valued and presented. They will take the time to understand how the breach has affected you, ensure your claim is supported by appropriate evidence and work to recover the compensation you are entitled to pursue.
Our panel of solicitors could help by:
- Investigating how your banking information was compromised and obtaining records from the bank to establish what personal data was involved in the breach.
- Assessing how the compromise of your personal information has affected your financial security and ensuring all recoverable material damage is included within your claim.
- Obtaining independent medical evidence when the breach has caused anxiety or another psychological injury related to concerns about your banking information.
- Reviewing the bank’s response to the security incident, including the information it has provided about the breach and the steps taken to protect your personal data.
- Advising on practical measures to help secure your banking information and other personal data following the breach while your claim is being pursued.
Contact How Much Compensation To Start A Claim
If you want to know how much compensation for a bank data breach you could claim, contact How Much Compensation today. One conversation with an advisor could give you the clarity you need and, where appropriate, put you in touch with a solicitor from our panel to begin your claim.
- Call 0800 408 7826
- Ask about claiming in our live chat.
- Fill out our contact form for a call back.
More Information
Here are a few more guides from How Much Compensation:
- Learn how much compensation could be awarded for an NHS data breach.
- Advice on compensation for a GP data breach.
- Information on landlord data breach claims.
- Learn how much compensation could be awarded if your data is breached by a post office.
Here are some external websites that could help you following a breach of banking data:
- The Financial Ombudsman handles complaints about banks.
- Learn how to protect your personal data from the impact of a breach with this National Cyber Security Centre guide.
- NHS advice on dealing with stress.
Thank you for reading our guide about how much compensation for a bank data breach.
