Data Breach Fines: Indie App Developers

TL;DR

Yes, you can be fined even if a data breach happens unintentionally. UK law (like the Data Protection Act 2018) focuses on whether you took reasonable steps to protect user data, not just *if* a breach occurred. This guide explains what you need to do to minimise risk and potential fines.

Understanding Your Responsibilities

1. Data Protection Laws: The Data Protection Act 2018 (which incorporates GDPR) is the main law. It says you must protect personal data, keep it secure, and be transparent about how you use it.
2. Personal Data: This includes names, email addresses, location data, purchase history – anything that identifies an individual.
3. Reasonable Steps: The ICO (Information Commissioner’s Office) expects you to take appropriate security measures based on the risk involved and the type of data you hold. A small app with basic contact details has different requirements than a banking app.

Steps to Protect User Data

1. Data Minimisation: Only collect the data you absolutely need. Don’t ask for information ‘just in case’.
2. Secure Storage:
   • Encryption: Encrypt data both when it’s stored (at rest) and when it’s being transferred (in transit). Use strong encryption algorithms.
   • Database Security: Protect your database with strong passwords, firewalls, and regular security updates. Consider using a managed database service that handles much of this for you.
3. Access Control: Limit who can access user data. Use different levels of permission.

   # Example (Python - very simplified)

   def check_permission(user, resource):
     if user.role == 'admin':
       return True
     elif resource == 'public_data' and user.role == 'user':
       return True
     else:
       return False

4. Regular Security Updates: Keep your software, libraries, and operating systems up to date. Vulnerabilities are constantly being discovered.
   • Automated Updates: Where possible, use automated update tools.
   • Dependency Management: Regularly check for vulnerable dependencies in your project (e.g., using pip audit for Python).
5. Input Validation: Prevent attackers from injecting malicious code into your app.

   # Example (PHP)

   $email = filter_var($_POST['email'], FILTER_SANITIZE_EMAIL);
   if (!filter_var($email, FILTER_VALIDATE_EMAIL)) {
     // Invalid email address
   }

6. Authentication & Authorisation: Use strong passwords and multi-factor authentication where appropriate.
7. Regular Backups: Regularly back up your data so you can restore it if something goes wrong.
   • Offsite Backups: Store backups in a separate location from your main servers.
8. Penetration Testing: Consider getting an independent security expert to test your app for vulnerabilities.

What to Do If a Breach Happens

1. Contain the Breach: Stop the attack and prevent further damage.
2. Assess the Impact: Find out what data was compromised and who was affected.
3. Report to the ICO: You must report serious breaches to the ICO within 72 hours of becoming aware of them. (ICO Data Breach Reporting)
4. Notify Affected Users: Inform users whose data was compromised as soon as possible.

Potential Fines

Fines can be substantial, up to £17.5 million or 4% of your annual global turnover (whichever is higher), depending on the severity of the breach and how well you followed data protection principles.

Resources

• ICO Website: https://ico.org.uk/
• NCSC (National Cyber Security Centre): https://www.ncsc.gov.uk/