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Home Legal Updates

The Legal Risks of Poor IT Infrastructure in Business

Lucas Leo by Lucas Leo
August 5, 2025
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The Legal Risks of Poor IT Infrastructure in Business
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Modern businesses rely on technology for almost everything. From storing customers’ data to processing payments and even operating their machinery in some cases, companies need their hardware, software, and other technological resources to work effectively and efficiently all the time. As long as those tools are working properly, they can help companies save time, stay in touch with customers and other members of their supply chains, and operate smoothly. 

Of course, things don’t always work the way they’re supposed to. When businesses’ systems break down, several issues can arise, not the least of which are costly downtime, breakdowns in communication, and lost sales. Legal problems are a major concern as well. Effective business IT support can help protect companies against the legal risks of poor IT infrastructure. 

Table of Contents

  • Data Breaches
  • Privacy Violations
  • Data Loss
  • Internal Threats
  • Compliance Issues
  • Preventing Legal Issues for Businesses

Data Breaches

Data breaches are among the main legal risks of poor IT infrastructure. Businesses store a great deal of sensitive information, including that of employees and customers. Their own proprietary information and intellectual property come into play here as well.

When all that data isn’t properly protected, it’s more likely to fall into the wrong hands. Small businesses are often the targets of cyber attacks with more than 700,000 of them being attacked annually. Larger companies aren’t immune, either. When criminals steal that information, they can wreak havoc on businesses and their owners’, employees’, and customers’ lives. 

Privacy Violations

In many cases, companies are up against strict privacy regulations regarding the information they handle. If it’s not handled properly, businesses may find themselves in violation of those regulations. That’s especially true if they didn’t take the necessary measures to prevent data breaches. Though it’s impossible to completely eliminate all risks of digital intrusions, it’s important for companies to do everything they can to reduce them. If they don’t, they can be held legally responsible for the repercussions. 

Data Loss

Businesses are expected to keep records for legal and tax purposes. Poor IT infrastructure can place those records at risk. If companies’ hardware fails or they fall victim to ransomware and other attacks, those records may be lost forever. That, in turn, can leave them with legal disputes, tax issues, and many additional problems. IT support can protect them against data loss and its consequences with firewalls, encryption, backups, and other measures. 

Internal Threats

Not all dangers come from outside. In many cases, employees are responsible for data loss, information leaks, and other related problems. Whether they place their employers at risk intentionally or inadvertently, the potential legal repercussions are the same. IT support teams can provide access control measures, activity tracking, and other solutions to minimize those internal risks. In doing so, they can prevent the legal consequences that come along with them. 

Compliance Issues

As mentioned, many businesses are expected to follow stringent regulations regarding how they store and handle sensitive information. HIPAA, FCRA, GLBA, and COPPA are a few of the most well known. Those regulations can be difficult to adhere to for any company, but having poor IT infrastructure can make it even more of a challenge. Businesses that don’t remain in compliance with regulations may be susceptible to legal penalties even if data breaches don’t happen. 

Preventing Legal Issues for Businesses

Today’s businesses are up against numerous risks. Legal issues that stem from poor IT infrastructure are some of the most significant. They can cost businesses money and the trust of consumers. In some cases, the legal repercussions of inadequate IT infrastructure can force businesses to close their doors for good. With all that being the case, it’s important for companies to have effective IT support services on their side. 

Lucas Leo

Lucas Leo

Hi, I’m Lucas Leo, an author and writer at AccordingLaw.com. I’m passionate about delivering the latest legal news and updates according law to keep you informed. Join me as I explore and share insights into the ever-evolving world of law!

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