Which of the following is a consequence of a data breach involving PII or PHI?

A data breach involving Personally Identifiable Information (PII) or Protected Health Information (PHI) can lead to serious legal consequences for organizations. When sensitive data is compromised, regulatory bodies and laws—such as the Health Insurance Portability and Accountability Act (HIPAA) for health information or various state and federal privacy laws—may impose legal penalties on the offending organization. These penalties can take the form of hefty fines, reparations for affected individuals, or even increased scrutiny from regulators.

Additionally, the breach can result in litigation costs, reputational damage, and the requirement to invest in remediation efforts. Organizations are thus incentivized to comply with data protection regulations and prioritize the safeguarding of sensitive information to avoid these repercussions. This highlights the importance of robust security measures and compliance protocols to protect against breaches and maintain consumer trust.

The legal ramifications emphasize the critical nature of maintaining the security of PII and PHI, reaffirming why this option is a direct consequence of a data breach.