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When a Cybersecurity Breach Involves Your IT Service Provider And Its Employee: Who Bears the Legal Liability?

Can an IT service provider and its employee be held liable when its employee compromises a client’s computer systems and confidential business information?

In Gas Malaysia Energy and Services Sdn Bhd & Anor v Rishveer Singh Jaswant Singh & Anor [2026] CLJU 3384, the High Court examined the civil liability arising from a cybersecurity breach involving an IT service provider and its employee, where approximately 621GB of corporate data was exfiltrated.

The decision highlights several important legal principles, including implied confidentiality obligations in commercial IT contracts, vicarious liability, breach of confidence and unlawful interference with trade. It also serves as a reminder that businesses must exercise care when granting external service providers access to their computer systems and confidential information.

AMLA Forfeiture : Can A Public Prosecutor Apply To High Court To Forfeit An Entire Bank Account When Only Part Of The Money Is Linked To Crime?

In LWC Good Service Sdn Bhd v. Public Prosecutor [2026] CLJU 3798, the Court of Appeal examined the evidential threshold for forfeiture under Section 56 of AMLA and reaffirmed the importance of establishing an evidentiary nexus between the property sought to be forfeited and unlawful activity. The decision highlights the doctrine of severability, distinguishing proven proceeds of crime from funds that have not been sufficiently linked to criminal activity, and reinforces the constitutional protection against arbitrary deprivation of property under Article 13 of the Federal Constitution.

Can Your Business Be Charged With Corruption If Your Employee Gives A Bribe To Secure A Contract For The Business?

Under Section 17A of the MACC Act 2009, a bribe paid by an employee, agent or other person associated with your business can expose not only the company, but potentially its directors and senior management as well.

In this article, I explain corporate liability, the statutory defence under Section 17A(4), and how the T.R.U.S.T. framework can help businesses reduce their corruption risks.

Can Your Business Bank Account Become Part Of A Money-Laundering Investigation Because Of Someone Else’s Cybercrime?

Your business could face scrutiny if funds linked to cybercrime pass through its bank account, even if you were unaware of the underlying criminal activity. From suspicious third-party payments to unexpected transfers, seemingly ordinary business transactions can expose your company to financial and legal risks.

Learn how to identify red flags, protect your business, and respond appropriately to suspicious transactions before they escalate into a money-laundering investigation.