GDPR as Cybersecurity Strategy: CNIL Report Reveals Billions Saved in EU Damages

Five years after the General Data Protection Regulation (GDPR) came into force, most public discourse still revolves around its compliance burdens and penalties. But a new report from the French data protection authority, CNIL, turns the conversation in a new direction, highlighting the regulation’s economic benefits, particularly from a cybersecurity standpoint.

Rather than focusing only on the costs of compliance, CNIL’s study dives into the long-term savings and systemic advantages brought about by GDPR-required security obligations. The key takeaway here is that the GDPR isn’t just about protecting personal data, it’s actively preventing economic harm, potentially saving the EU billions.

A Hidden Economic Value

At the heart of CNIL’s analysis is a concept often overlooked in discussions about cybersecurity externalities. These are the unintended side effects (positive or negative) that a company’s actions can have on others. In cybersecurity, a company’s decision to invest (or not invest) in protective measures affects not only its own systems but also its partners, competitors, users, and even attackers.

Here’s how:

1. Companies Help Each Other

Cybersecurity works a bit like public health. One company’s investment in strong security practices can reduce the risk for others. Think of it as "digital herd immunity." In sectors where companies share data, outsource work, or rely on common networks, better protections in one firm help limit the spread of attacks across the industry.

Yet, without regulation, companies have little incentive to invest in security for the benefit of others. GDPR changes that, compelling higher standards across the board.

2. Regulation Makes Cybercrime Less Profitable

Cybercriminals, especially those behind ransomware, rely on poorly protected systems. The easier it is to breach a system, the more likely attackers are to profit. When security is weak across the board, criminals succeed more often and can afford to demand higher ransoms.

By forcing businesses to raise their defences, GDPR doesn’t just protect data, it disrupts the business model of cybercriminals. Fewer successful attacks mean less incentive to continue, weakening the overall threat.

3. Customers Are Safer and Better Informed

Before GDPR, data breaches often went unreported. Companies feared reputational fallout and, without legal obligations, could quietly resolve incidents without informing the people affected.

Now, mandatory breach notifications ensure that users know when their data has been compromised. This transparency allows individuals to take protective action (like changing passwords or monitoring financial activity), and holds businesses accountable. Over time, this has led to more trust in online services and a greater incentive for companies to avoid being the next headline.

The Numbers Behind the Regulation

One of the most compelling aspects of CNIL’s study is its attempt to put a price tag on these benefits. By looking specifically at the impact of breach notification requirements, economists found a measurable drop in identity theft since GDPR came into force, estimated at between 2.5% and 6.1%.

Translating that into economic terms:

• France has potentially avoided losses of €90 million to €219 million.

• Across the EU, the estimated savings range from €585 million to €1.4 billion.

• Around 82% of those avoided losses benefit businesses, due to reduced fraud, fewer customer claims, and preserved consumer trust.
  
  

This analysis only accounts for identity theft, not the full range of threats covered under GDPR, such as ransomware or malware infections. The actual economic benefit is likely far greater.

How Can Gerrish Legal Help?

Gerrish Legal is a dynamic digital law firm. We pride ourselves on giving high-quality and expert legal advice to our valued clients. We specialise in many aspects of digital law such as GDPR, data privacy, digital and technology law, commercial law, and intellectual property. 

We give companies the support they need to successfully and confidently run their businesses whilst complying with legal regulations without the burdens of keeping up with ever-changing digital requirements. 

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