Pursuant to fraudulent instructions sent by imposters, the Management Company effected remittances in a total sum of US$1,898,000. Ultimately, damages to be paid by the Management Company were reduced by 50% in light of the Plaintiffs’ contributory negligence.
In common law, duty of care is defined as a legal obligation which is imposed on an entity or individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others. Duty of care doctrine in cybersecurity is equally the legal obligation which is imposed on a company to adhere to a standard of reasonable care while entrusted with safeguarding client’s data and confidential information. Therefore, directors of a company are responsible to harden the company’s cybersecurity posture to protect the data it held. Directors are also held responsible to learn more how to ensure the company’s data are in good hands.