CS Professional · Internal and Forensic Audit · Cyber Forensics
Sahyadri Textiles Ltd, a company, stores customers' bank account details on its own servers. Because the firm skipped basic access controls, a hacker copied the data and several customers lost money. Under the Information Technology Act, 2000, which liability is most directly attracted for the company?
The company is liable to pay compensation to the affected customers under Section 43A. It handled sensitive personal data, was negligent in maintaining reasonable security practices, and that negligence caused wrongful loss. The cyber terrorism, monitoring and CERT-In provisions need different facts that are absent here.
- ALiability to pay damages by way of compensation to the affected persons for negligence in maintaining reasonable security practices (Section 43A)Correct
- BLife imprisonment for cyber terrorism under Section 66F
- CFine on the company for failing to give technical assistance to a monitoring agency under Section 69B
- DPenalty for not complying with directions of CERT-In under Section 70B
Explanation
Section 43A applies where a body corporate handling sensitive personal data in a computer resource it owns, controls or operates is negligent in implementing reasonable security practices and thereby causes wrongful loss or gain. The remedy is damages by way of compensation. Section 66F needs intent to threaten national security, and 69B and 70B are not triggered because no agency demand was ignored.
Did you get it right without looking?
One question tells you little. A timed set on Cyber Forensics shows your real accuracy, how long you take and where you lose marks.
More Cyber Forensics questions
- During a suspected data-theft inquiry at an Indian firm, a forensic auditor must examine a seized laptop's hard disk. Which step should be t…
- A forensic auditor reviews an incident at Bharat Grid Ltd where an outsider, intending to threaten the security of India, introduced a compu…
- During a forensic review, an auditor examines a log that records the origin, destination, route, time, size and duration of communications b…
- An auditor investigating a suspected intrusion into the servers of a Chennai firm must capture data that disappears when power is lost, such…
- A forensic auditor at a Delhi bank finds that an insider copied customer files to a USB drive and then deleted them from the workstation. Wh…
- Meridian Textiles Ltd, Surat, finds that an outsider hacked its ERP server and altered vendor bank details, leading to a fraudulent payment …