← VCE Data Analytics U4O2

Consequence of diminished data integrity: legal issues

Keeping or acting on inaccurate data can breach laws like privacy obligations, leading to fines, penalties or legal claims by affected people.

Part of: VCE Data Analytics - U4O2 - Cyber Security: Data Security — Module 30

Understanding Consequence of diminished data integrity: legal issues in VCE Data Analytics U4O2

What it does: Privacy laws like APP 10 require personal information to be accurate, up to date and complete, so failing to do this is a breach. Regulators can impose fines or penalties on organisations that breach their legal obligations, including those about data accuracy. Affected people may make claims or complaints, and can seek compensation, when inaccurate data causes them harm. Legal risk comes from keeping or using inaccurate data, even if no hacker is involved. This is the core concept: poor data integrity can create legal consequences for an organisation. Individuals harmed by inaccurate data, such as being wrongly refused a service, can claim against the organisation.

Common mistakes: The condition is reversed. Inaccurate data (accurate == False) is what must be corrected and logged as a privacy risk, so the test should be 'record.accurate == False'. A breach caused by inaccurate data adds to the fine, it does not reduce it. The line should be 'fine = fine + 50000'.

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This module's key terms are also in a printable crossword (Modules 26–43) and word search (Modules 1–43).

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Learning

Duo

A company keeps a customer's old, incorrect address on file after being told it has changed. Could this be a legal issue?

Yes, it may breach privacy obligations to keep personal information accurateNo, data accuracy is never a legal matter

Matches

Inaccurate data only causes technical problems, never legal ones.

↓

Wrong: inaccurate data can also breach laws, such as privacy obligations, and lead to fines or legal action.

Applying

Meanings

Term

Legal issues from diminished data integrity

Meaning

Keeping or acting on inaccurate data can breach laws like privacy obligations, leading to fines, penalties or legal claims by affected people.

Practice

IF dataIsInaccurate = TRUE THEN

Testing

Gaps

IF recordAccurate = THEN

Check Answer

Spots

1record = get_record(id)

2if record.accurate == True:

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Quick Questions

1. A company keeps a customer's old, incorrect address on file after being told it has changed. Could this be a legal issue?

A. Yes, it may breach privacy obligations to keep personal information accurate ✓

B. No, data accuracy is never a legal matter

Privacy laws such as APP 10 require organisations to take reasonable steps to keep personal information accurate, up to date and complete.

2. Which is a possible legal consequence of an organisation holding inaccurate personal data?

A. A bonus payment from the regulator

B. A fine or penalty from a regulator ✓

Breaching privacy obligations can lead to penalties or fines, as well as other enforcement action.

3. A bank acts on wrong credit data and wrongly refuses a customer a loan. What might the customer do?

A. Nothing, as customers cannot make claims about data

B. Make a legal claim for the harm caused ✓

Affected people may make claims or complaints, and can seek compensation, when inaccurate data causes them harm.

4. Which statement about legal issues and data integrity is correct?

A. Acting on inaccurate data can be a legal problem, not only a business one ✓

B. Inaccurate data only causes legal problems if it is stolen

Legal risk comes from keeping or using inaccurate data, even if no hacker is involved.

5. Which sub-theme is an example of a legal issue from diminished data integrity?

A. Breach of privacy obligations ✓

B. A slower internet connection

Failing to keep personal information accurate can breach privacy obligations. Slow internet is an operational issue, not a legal one.

Match the Pairs

Legal issues from diminished data integrity → Keeping or acting on inaccurate data can breach laws and lead to fines, penalties or legal action.

Claim by an affected person → A person harmed by wrong data about them takes legal action to seek compensation.

An organisation keeps out-of-date customer records and breaches its privacy obligation to keep personal information accurate → breach of privacy obligations

A regulator penalises an organisation that acted on inaccurate personal data in breach of the law → fines and penalties

Inaccurate data only causes technical problems, never legal ones. → Wrong: inaccurate data can also breach laws, such as privacy obligations, and lead to fines or legal action.

Only the organisation can take legal action when data is wrong. → Wrong: affected people can also make claims against the organisation if inaccurate data about them causes harm.

Key Term

Legal issues from diminished data integrity

Keeping or acting on inaccurate data can breach laws like privacy obligations, leading to fines, penalties or legal claims by affected people.

Fill in the Blanks

1. IF recordAccurate = FALSE THEN flagLegalRisk() END IF

Hint: Type the Boolean value that means the record is inaccurate, so a legal risk is flagged.

2. IF dataIsWrong AND hasPersonalInfo THEN privacyBreach ← TRUE END IF

Hint: Type the logical operator that needs both conditions to be true before a privacy breach occurs.

3. fine ← 0 IF privacyBreach = TRUE THEN fine ← 50000

Hint: Type the keyword that starts the code to run when the privacy breach condition is true.

4. FOR EACH person IN affectedPeople claimCount ← claimCount + 1 NEXT person

Hint: Type the keyword that links the loop variable to the list of people harmed by the inaccurate data.

5. IF dataAccurate THEN legalRisk ← "low" ELSE legalRisk ← "high"

Hint: Type the keyword for the alternative branch that runs when the data is not accurate.

Spot the Error

Question 1

A record = get_record(id)

B if record.accurate == True:

C correct(record)

D log_privacy_risk(record)

Line B — The condition is reversed. Inaccurate data (accurate == False) is what must be corrected and logged as a privacy risk, so the test should be 'record.accurate == False'.

Question 2

A fine = 0

B if inaccurate and breach:

C fine = fine - 50000

D print(fine)

Line C — A breach caused by inaccurate data adds to the fine, it does not reduce it. The line should be 'fine = fine + 50000'.

Question 3

A claims = 0

B for p in unaffected_people:

C claims += 1

D print(claims)

Line B — Legal claims come from people affected by the inaccurate data, not from unaffected people. The loop should go through affected_people.

Question 4

A def check_privacy(record):

B if not record.accurate:

C return 'Compliant'

D return 'Compliant'

Line C — Inaccurate data risks breaching privacy obligations. The line inside the 'if not record.accurate' block should return 'Breach risk', not 'Compliant'.

Question 5

A if customer_data_wrong:

B risk = 'none'

C notify_legal_team()

Line B — Keeping wrong customer data can lead to legal action or penalties. The risk should be set to 'legal action', not 'none'.

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