Data Protection Violations in Finance, Insurance, and Consulting

May 18, 2024By EMTACS

Data Protection Violations in Finance, Insurance, and Consulting

We summarized the extended report, if you are interested in the full report, you can find the link below.

The report reveals a significant increase in the enforcement actions undertaken by Data Protection Authorities (DPAs) across 24 countries, reflecting a growing emphasis on compliance with data protection regulations within the finance, insurance, and consulting sectors. A total of 215 fines, amounting to EUR 57.3 million, have been imposed—a notable surge from the previous year. Spain emerges as the frontrunner, with 64 fines, followed closely by Romania, Hungary, Poland, and Germany.

The majority of fines (64) were attributed to a lack of legal basis for data processing, primarily seen in cases where companies sent advertising messages to individuals without obtaining proper consent. Additionally, a significant number of fines (59) were issued due to inadequate technical and organizational measures to ensure information security—a critical concern in the heavily regulated financial and insurance industries.

Notably, the Spanish DPA (aepd) not only leads in the number of fines imposed but also in the magnitude of penalties levied. With fines ranging from EUR 1 to 6 million, the Spanish authorities have taken decisive action against non-compliant entities, signaling a strict enforcement stance in ensuring data protection compliance.

These findings underscore the importance for organizations operating in the finance, insurance, and consulting sectors to prioritize data protection measures and compliance efforts. With regulatory scrutiny intensifying and penalties escalating, businesses must invest in robust data security protocols and adhere strictly to legal requirements to mitigate the risk of regulatory sanctions and reputational damage.