Insolvency practitioners that fail to properly delete data (opens in new tab) belonging to insolvent companies are risking huge fines, according to a new report from DSA Connect.
The firm states that practitioners looking to sell assets that belong to insolvent companies need to ensure they do so without the bounds of the law. If data is sold that should not have been, intellectual property could end up being exposed, in breach of GDPR.
According to DSA Connect chairman, Harry Benham, the number of insolvent companies has risen substantially with the enforcement of the lockdown, with 50 percent more insolvent companies compared to the same period last year.
There are also over 500,000 UK businesses in “serious financial distress”, which is around seven percent higher than last year, he added.
For Benham, the problem isn’t in the data found on PCs or servers (opens in new tab), but rather on smartphones, photocopiers and other similar devices.
“So, the risk of IPs falling foul of GDPR is heightened, as the types and volumes of electronic devices which retain data grows," he explained.
"The increased risk of items being sold containing data could potentially expose the IP to breaches in GDPR which could result in fines and/or compensation, together with brand and reputational damage.”
- Data breach fines could skyrocket this year (opens in new tab)