quora
webinr-icon

“A Fintech’s Path to Rapid Growth with 100% KYC/KYB Compliance” - 7th November

Register Here

The Naivas Data Breach | A Wake-Up Call for Firms to Follow Privacy Laws

n-img-naivas

Naivas, one of Kenya’s largest supermarkets, recently suffered a data breach, highlighting the importance of companies collecting large quantities of personal information to adhere to the Kenya Data Protection Act (DPA, 2019).

Hackers allegedly stole customer and staff data from Naivas, one of the largest supermarkets in Kenya. The recent data breach illustrates how important it is for companies that collect large amounts of personal information to ensure strict compliance with the Data Protection Act. 

Naivas says the breach has been acknowledged, and a cybersecurity firm has commissioned an investigation. The breach illustrates the importance of companies maintaining transparency about collecting and data usage. Data collection, usage, and protection of consumer information are fundamental rights consumers should know. 

There has been dire consequences for retailers who have fallen victim to data breaches due to insufficient compliance with privacy laws, lets take a look at this around the world:

Target’s significant data breach in 2013 compromised 110 million customer records in the United States. Target has paid $18.5 million in settlements and fines in response to the breach, including $10 million in payments to class action lawsuits from affected consumers. Additionally, it left a permanent mark on the company’s image and a drastic downfall in the stocks. 

Morrisons, a British supermarket, suffered a similar situation in 2014, when a former employee leaked the personal information of nearly 100,000 employees and customers. This included names, addresses, bank account numbers, and salaries. 5,000 Morrisons employees later filed a class action lawsuit against the retailer, and Morrisons was found liable. The employee was sentenced to eight years in prison for his part in the breach. After being found guilty of violating the UK Data Protection Act, the company was ordered to pay £2.5 million compensation. A significant amount of damage was also done to the company’s reputation.

Large and well-established companies can suffer severe financial and reputational ramifications from data breaches. Kenyan supermarkets are susceptible to data breaches. They should take appropriate measures to safeguard their customers’ information. The Naivas breach illustrates this point. 

The Data Protection Commissioner is responsible for enforcing the Data Protection Act in Kenya. This Act imposes substantial fines for violations of the Act. In order to protect the privacy of their customers, Kenyan companies should comply with these regulations.

Suggested Reads: 

CBN FINES GTBANK N128M FOR FAILING TO MEET AML AND CTF REQUIREMENTS

AUSTRALIANS LOST A RECORD AMOUNT OF OVER $3 BILLION TO SCAMS IN 2022

Related Posts

News

United States Senate, UAE Government, and Spain Make Significant Efforts to Curb Money Laundering and Terrorist Financing Activities

UK Parliament Legislates New Digital Identity Verification Services Bill Taiwan and Singapore St...

United States Senate, UAE Government, and Spain Make Significant Efforts to Curb Money Laundering and Terrorist Financing Activities Read More

News

UK Parliament Legislates New Digital Identity Verification Services Bill

At the same time, trade bodies and digital identity service providers have consulted with the gov...

UK Parliament Legislates New Digital Identity Verification Services Bill Read More

News

Taiwan and Singapore Strengthen AML Regulations for Virtual Asset Providers and Banks

According to the recently passed amendments, overseas crypto platforms are obliged to set up loca...

Taiwan and Singapore Strengthen AML Regulations for Virtual Asset Providers and Banks Read More

News

Singapore and Europe Enhance AML Framework to Fight Financial Crimes Effectively

For the CSPs, the law mandates that they must ensure that the arranged nominees are “fit and prop...

Singapore and Europe Enhance AML Framework to Fight Financial Crimes Effectively Read More

News

Türkiye Removed From Gray List, India Recognized for Its AML Efforts, and Kuwait Urged to Have Better Money Laundering Control Measures: FATF Updates

In addition to these shortcomings, the watchdog discovered that the country’s banking, constructi...

Türkiye Removed From Gray List, India Recognized for Its AML Efforts, and Kuwait Urged to Have Better Money Laundering Control Measures: FATF Updates Read More

News

FINMA, SFC, and MAS Fine Multiple Financial Institutions Over $1.5 Billion For Money Laundering Activities

These suspicious transactions amounted to more than $300 million and were conducted between 2002 ...

FINMA, SFC, and MAS Fine Multiple Financial Institutions Over $1.5 Billion For Money Laundering Activities Read More

News

Nigeria, Myanmar, and Türkiye Take Effective Steps to Meet FATF Recommendations

Mohammad Shahid Ahmed, the Chief of Staff at NFIU, has been appointed as the Vice Chairman of the...

Nigeria, Myanmar, and  Türkiye Take Effective Steps to Meet FATF Recommendations Read More

News

Regulatory Authorities Fines TD Bank, Adelaide Casino, and SBI over $500 Million For AML Failings

In addition to this, the spokesperson also stated that the company failed to comply with due dili...

Regulatory Authorities Fines TD Bank, Adelaide Casino, and SBI over $500 Million For AML Failings Read More

News

United States Senate, UAE Government, and Spain Make Significant Efforts to Curb Money Laundering and Terrorist Financing Activities

UK Parliament Legislates New Digital Identity Verification Services Bill Taiwan and Singapore St...

United States Senate, UAE Government, and Spain Make Significant Efforts to Curb Money Laundering and Terrorist Financing Activities Read More

News

UK Parliament Legislates New Digital Identity Verification Services Bill

At the same time, trade bodies and digital identity service providers have consulted with the gov...

UK Parliament Legislates New Digital Identity Verification Services Bill Read More

News

Taiwan and Singapore Strengthen AML Regulations for Virtual Asset Providers and Banks

According to the recently passed amendments, overseas crypto platforms are obliged to set up loca...

Taiwan and Singapore Strengthen AML Regulations for Virtual Asset Providers and Banks Read More

News

Singapore and Europe Enhance AML Framework to Fight Financial Crimes Effectively

For the CSPs, the law mandates that they must ensure that the arranged nominees are “fit and prop...

Singapore and Europe Enhance AML Framework to Fight Financial Crimes Effectively Read More

News

Türkiye Removed From Gray List, India Recognized for Its AML Efforts, and Kuwait Urged to Have Better Money Laundering Control Measures: FATF Updates

In addition to these shortcomings, the watchdog discovered that the country’s banking, constructi...

Türkiye Removed From Gray List, India Recognized for Its AML Efforts, and Kuwait Urged to Have Better Money Laundering Control Measures: FATF Updates Read More

News

FINMA, SFC, and MAS Fine Multiple Financial Institutions Over $1.5 Billion For Money Laundering Activities

These suspicious transactions amounted to more than $300 million and were conducted between 2002 ...

FINMA, SFC, and MAS Fine Multiple Financial Institutions Over $1.5 Billion For Money Laundering Activities Read More

News

Nigeria, Myanmar, and Türkiye Take Effective Steps to Meet FATF Recommendations

Mohammad Shahid Ahmed, the Chief of Staff at NFIU, has been appointed as the Vice Chairman of the...

Nigeria, Myanmar, and  Türkiye Take Effective Steps to Meet FATF Recommendations Read More

News

Regulatory Authorities Fines TD Bank, Adelaide Casino, and SBI over $500 Million For AML Failings

In addition to this, the spokesperson also stated that the company failed to comply with due dili...

Regulatory Authorities Fines TD Bank, Adelaide Casino, and SBI over $500 Million For AML Failings Read More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started