How to respond to data theft in the workplace

Data theft, the unauthorised copying or removal of sensitive information from company systems, has become a significant concern for businesses of all types and sizes. This threat can originate from many sources, with internal threats from  employees, consultants, directors and even shareholders posing a substantial risk.

Departing employees, especially those planning to join a competitor or start their own business, are particularly vulnerable to temptation. A misguided sense of ownership over company data, coupled with the belief that such actions are commonplace, can lead to serious breaches.

The prevalence of flexible and remote work arrangements further exacerbates this risk, as employees may store sensitive information on personal devices, making it easier to misuse or steal.

Our experience and how we can help

We offer a comprehensive range of legal services to assist businesses affected by data theft :-

• Investigation and evidence gathering – understanding the legal rules and risks of obtaining evidence is vital before you start investigating. Getting it wrong can mean any evidence is inadmissible at court and you may even be breaching employment law or data and privacy laws. Evidence may be found in emails, downloads, or other digital footprints. We work with forensic experts to recover deleted or encrypted data.

• Regulatory compliance and Data Protection - advice on data protection regulations, such as the UK GDPR, and ensuring clients comply with any data breach notification requirements.

• Legal action and dispute resolution – we represent clients pursuing legal action against individuals or organisations responsible for the data theft in court proceedings, including injunctions, specific performance applications and claims for damages. We also negotiate settlements or pursue litigation to recover damages and losses and liaise with the police about possible criminal law action.

• Preventing future data theft and mitigation data related legal risk.

Common types of data theft in the workplace

• Customer lists and information

• Pricing structures

• Financial data

• Trade secrets

• Company policies

• Employee information

• Operating processes

• Strategic plans

• Source code

Options for employers

In cases of data theft, businesses may pursue legal action, such as :-

• Disciplinary action - for current employees, disciplinary measures, including termination, may be appropriate.

• Injunctions - court orders can be obtained to prevent further misuse of data and compel the return of stolen information.

• Civil litigation - lawsuits may be filed to recover damages and seek other remedies.

• Criminal prosecution including private prosecution - law enforcement may pursue criminal charges against the perpetrator.