Reported by Cassandra Cross and Thomas J. Holt

(Summary version featured below. To read full report, go to: https://www.wsj.com/tech/cybersecurity/data-breach-victims-0b01a5ab?mod=mhp)

A new study highlights a side of data breaches that is often overlooked: the profound emotional and physical toll on victims. While companies typically respond to breaches by urging customers to change passwords, offering credit monitoring, and monitoring for identity theft, these measures mainly address financial harm. Research conducted on 552 Australian data-breach victims shows that the damage goes far deeper. Half of respondents reported emotional harm, nearly one-third suffered physical effects, and almost one-quarter said their personal relationships were negatively affected.

These findings reflect how deeply digital our lives have become. Today, everything from medical diagnoses and private images to dating-profile details is stored online. When such information is exposed, victims often experience anxiety about potential fallout — whether losing a job, damaging relationships, or becoming targets for scammers using stolen personal information. Many live in a constant state of suspicion and fear, wondering if today will be the day their stolen data is misused or publicly exposed.

Despite the scale of this suffering, society has been slow to acknowledge it. The authors argue that simple recognition of the emotional burden is an essential first step — both for victims, who may not realize their reactions are common, and for mental-health professionals, who need to be aware that data-breach trauma exists and may require treatment.

The question of who should pay for emotional and psychological recovery is complex. Supporting millions of victims is costly, but parallels exist: survivors of other personal crimes receive assistance to rebuild their lives. The authors suggest that breached organizations could shoulder part of the cost, potentially guided by medical recommendations. Cyber-insurance policies could also incorporate coverage for therapeutic care, though this may raise premiums.

Insurers, government programs, and nonprofit victim-service providers all have potential roles as well. The authors conclude that acknowledging nonfinancial harm and providing structured support are crucial steps toward helping victims recover fully — not just financially, but emotionally, physically, and socially.