Question

A company handling sensitive customer data experiences a security breach due to inadequate security measures. Under which section of the IT act can the company be held liable and what would be the consequence?

• A. Section 65 with a fine up to 2,00,00 rupees
• B. Section 43 with a liability to compensate the affected customers
• C. Section 66 with imprisonment for IT manager
• D. Section 67 with the website being shut down

Answer 1

Answer:

B. Section 43 with a liability to compensate the affected customers

Section 43: Penalty and Compensation for Damage to Computer, Computer System, etc.

Any person who, without permission of the owner or any other person who is in charge of a computer, computer system or computer network:

• Accesses or secures access to such computer, system or network.
• Downloads, copies, or extracts any data, computer database or information.
• Introduces or causes to be introduced any computer contaminant or computer virus.
• Damages or causes to be damaged any computer, computer system or computer network, data or database.
• Disrupts or causes disruption of any computer, system or network.
• Denies or causes the denial of access to any person authorized to access it.
• Provides any assistance to any person to facilitate access or control over a computer system or network in contravention of the IT Act.
• Destroys, deletes or alters any information residing in a computer resource or diminishes its value or utility.