Question

Malti, a small business owner, runs an online clothing store. Recently, she noticed that her website had been hacked, and her customers’ personal information, including names, addresses, and payment details, was stolen. Shortly after, some of her customers reported unauthorized transactions on their accounts. Malti wishes to file a complaint against the incident.
On the basis of the above problem select the correct option.

• A. It is punishable under Section 66 of the Information Technology Act, 2000.
• B. It is punishable only under the criminal laws.
• C. It is punishable under Section 66 of the Information Technology Act, 2000, and customers can claim compensation under certain circumstances.
• D. The customers do not have any legal remedy under the Information Technology Act, 2000.

Answer 1

The Correct Option is C

The hacking of Malti’s website and the subsequent theft of customer data likely fall under the purview of Section 66 of the Information Technology Act, 2000, which deals with computer-related offenses. Additionally, the affected customers may have legal recourse to claim compensation for damages suffered due to the data breach.