Key Takeaways

  • A breach of confidentiality occurs when sensitive information is disclosed without authorization, impacting businesses, healthcare, legal professions, and employment relationships.
  • Privacy laws and confidentiality agreements provide legal protection against breaches, with potential consequences including legal action and reputational damage.
  • Attorney-client privilege and doctor-patient confidentiality are legally protected, with exceptions for public safety and legal requirements.
  • Employers and employees must uphold confidentiality through contracts, policies, and proper data security measures.
  • Real-world examples and case studies demonstrate the impact of breaches and the importance of prevention.
  • Preventative measures such as non-disclosure agreements (NDAs), employee training, and secure data handling are crucial in minimizing risks.

What constitutes a breach of confidentiality? A breach of confidentiality, or violation of confidentiality, is the unauthorized disclosure of confidential information. It may happen in writing, orally, or during an informal meeting between the parties. A breach of confidentiality is especially significant in the medical field, the legal profession, the military, or matters of state security. It is a common law offense, meaning it can be brought as a civil lawsuit against the person who broke the agreement.

Confidentiality

Confidentiality of data guarantees that only authorized people can access information. It is the basis of information security. It also raises the ethical principle that what is communicated between a professional and an individual can't be disclosed to anyone else, even to the police. Except in specific situations, these professionals are obliged by law to keep the information private.

Legally speaking, the issue of confidentiality of data arises when an obligation of confidence exists between a data collector and a data subject.

Types of Confidential Information

Confidential information can take many forms, depending on the industry and context. The most common types include:

  • Personal Data: Social Security numbers, addresses, phone numbers, and medical records.
  • Financial Information: Banking details, credit card numbers, and company financial reports.
  • Intellectual Property (IP): Trade secrets, proprietary formulas, patents, and business strategies.
  • Client Information: Customer records, legal documents, and private business dealings.
  • Employee Data: Salaries, performance reviews, and disciplinary records.
  • Corporate Data: Internal emails, financial forecasts, and board meeting discussions.

Organizations must classify their confidential information and implement proper security measures to protect it from unauthorized access or disclosure.

Privacy Laws

Privacy laws could cover breaches of confidentiality, as “confidentiality” and “privacy” almost have the same meaning. Among other sanctions, the convicted risks monetary damages and an injunction to stop revealing protected information.

Legal Consequences of a Breach of Confidentiality

A breach of confidentiality can result in severe legal consequences, depending on the nature of the information disclosed and applicable laws. Some key repercussions include:

  1. Civil Lawsuits – The affected party can sue for damages if the breach results in financial or reputational harm.
  2. Criminal Penalties – In cases involving medical records (HIPAA violations), classified government information, or corporate espionage, breaches may lead to fines or imprisonment.
  3. Regulatory Fines – Organizations that fail to protect confidential data may be subject to penalties from regulatory bodies such as the General Data Protection Regulation (GDPR) or HIPAA in the healthcare industry.
  4. Loss of Professional License – Professionals such as lawyers and healthcare providers may lose their licenses or face disciplinary action for breaching confidentiality obligations.
  5. Reputational Damage – Beyond legal penalties, a confidentiality breach can harm a business or professional’s credibility, resulting in lost clients and reduced trust.

Employers and employees should ensure compliance with confidentiality laws and take proactive measures to prevent breaches.

Breach of Confidentiality in the Legal Profession

It is considered a breach of confidentiality when a lawyer reveals the information he received during professional conversations. It is prohibited by federal law. To obtain legal advice from their lawyer, the clients must divulge accurate and confidential information. They will do so if they trust their secret won't be revealed. This principle is known as attorney-client privilege, and it guarantees that even if the clients confess their guilt, their confessions won't be disclosed or used against them. Lawyers are not allowed to speak to the media or the police or testify in court concerning these confessions.

Examples of Breach of Confidentiality in Legal Settings

A breach of confidentiality in the legal profession can take different forms, including:

  • Accidental disclosure: A lawyer unintentionally shares privileged client information via an email sent to the wrong recipient.
  • Intentional leaks: A legal assistant shares case details with a journalist without authorization.
  • Unauthorized access: A staff member at a law firm accesses client files without permission.
  • Courtroom disclosure: A lawyer inadvertently reveals confidential case details in open court when not required.

To mitigate risks, law firms should implement strong data security policies, restrict access to sensitive information, and train employees on ethical obligations.

Exceptions to Breach of Confidentiality in the Legal Profession

In most jurisdictions, the protection of attorney-client privilege won't apply if any of the following are true:

  • The client confesses his intention to commit a crime or the attorney thinks he might do so.
  • He uses/seek to use the attorney services to perpetrate fraud. In that case, the attorney may disclose that information to prevent the crime from happening, but he is not obligated to do so.
  • Someone other than the client and attorney is voluntarily present during their conversation.

Case Studies of Breach of Medical Confidentiality

Several real-world cases highlight the importance of protecting patient confidentiality:

  • Case 1: Hospital Data Leak – A large hospital suffered a breach when an employee accessed and leaked celebrity patient records, leading to legal action and loss of trust in the institution.
  • Case 2: Improper Disposal of Medical Files – A healthcare clinic faced fines after improperly disposing of medical records, allowing unauthorized individuals to access patient information.
  • Case 3: Social Media Disclosure – A nurse posted details of a patient's condition on social media, violating HIPAA laws and resulting in termination and legal consequences.

These cases underscore the importance of strict confidentiality policies, staff training, and secure data management in healthcare settings.

Breach of Confidentiality in Medical Professions

It constitutes a breach of confidentiality if doctors, physicians, psychologists, and psychiatrists expose anything they were informed of by the patient during the treatment process, even after the deaths of their patient. Doing so is illegal and punishable under federal laws. To provide the best treatment, physicians need private information from their patients. Patients will only share it if they know it won't be disclosed. Confidentiality is fundamental in the medical sphere. Therefore, the person responsible for the breach may face sanctions from his employer or the board that approved his professional license.

Exceptions to Breach of Confidentiality in the Medical Profession

Some circumstances allow a disclosure by the professional:

  • The patient freely agrees to the breach and is fully informed of the disclosure.
  • When the patient is not able to give his consent. For example, if his conscious level is affected, disclosure can be justified on the presumption of implied consent.
  • The patient represents a threat to himself or others.
  • A judge orders the disclosure.

When medical staff needs to breach confidentiality, it should follow what is called the Caldicott Principles.

Breach of Confidentiality by an Employer

It is against federal laws for employers to sell or divulge the personal information their employees provide, such as Social Security or bank account numbers, home addresses, or credit card information. Employees risk identity theft or robbery if employers don't respect the confidentiality of their details. Employers should protect sensitive information in the workplace.

Preventing Workplace Breaches of Confidentiality

Employers must take proactive steps to prevent confidentiality breaches in the workplace, including:

  • Implementing Non-Disclosure Agreements (NDAs) – Require employees and third parties to sign NDAs to protect sensitive business information.
  • Conducting Regular Employee Training – Educate staff on data protection policies and ethical obligations.
  • Using Secure Communication Channels – Ensure company communications occur through encrypted emails and protected networks.
  • Restricting Access to Confidential Data – Implement role-based access control to limit exposure to sensitive information.
  • Establishing Clear Company Policies – Create a well-defined confidentiality policy that outlines the consequences of breaches.

By implementing these measures, businesses can reduce the risk of data leaks and protect their reputation.

Breach of Confidentiality by the Employee

Companies that create and distribute innovative products keep the manufacturing details confidential to protect the ideas from stealing or duplicating by competitors. If an employee is terminated from one of these companies and discloses the secrets, he could cause substantial harm to its former employer. Therefore, many companies ask employees to sign a confidentiality agreement in which they consent not to disclose the company secrets if their contract ends.

Consequences of Employee Breach of Confidentiality

If an employee breaches confidentiality, potential consequences may include:

  1. Termination of Employment – Employers have the right to dismiss employees who violate confidentiality agreements.
  2. Legal Action – The employer may sue the employee for damages if trade secrets or proprietary information are leaked.
  3. Criminal Charges – In cases of severe breaches, such as identity theft or corporate espionage, employees may face legal prosecution.
  4. Industry Blacklisting – A confidentiality violation may harm an employee’s professional reputation, limiting future job opportunities.
  5. Loss of Professional Certification – Certain industries, like healthcare and law, may revoke professional licenses for severe breaches.

Employees must be aware of their contractual obligations and the potential repercussions of disclosing sensitive information.

Frequently Asked Questions

1. What are the most common causes of a breach of confidentiality?

The most common causes include human error, improper data disposal, cyberattacks, unauthorized access, and intentional leaks by employees.

2. How can businesses prevent breaches of confidentiality?

Businesses can prevent breaches by enforcing NDAs, implementing strong cybersecurity measures, restricting data access, and training employees on confidentiality policies.

3. Can a breach of confidentiality lead to criminal charges?

Yes, in severe cases involving financial fraud, medical record violations, or corporate espionage, a breach can lead to criminal penalties, including fines and imprisonment.

4. What should I do if my confidential information is leaked?

If your information is leaked, document the breach, report it to the necessary authorities, consult a legal expert, and consider legal action if applicable.

5. How does confidentiality differ from privacy?

Confidentiality refers to an obligation to protect information shared in trust, while privacy concerns an individual's right to control their personal data.

If you need help with breach of confidentiality, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.