Cybercrime and Data Protection: Legal Risks Every Business Should Understand

As Cambodia’s economy becomes increasingly digital, businesses of all sizes are more exposed than ever to cybercrime and data-related risks. From online scams and phishing attacks to data breaches and misuse of personal information, cyber threats are no longer limited to large corporations or technology companies. Yet many Cambodian businesses underestimate their legal exposure in this area, assuming that weak enforcement or the absence of a comprehensive data protection law means limited risk. This assumption can be costly.

Cybercrime Risks for Businesses

Cybercrime commonly takes the form of online fraud, identity theft, phishing, hacking, and misuse of digital platforms. Businesses may be victims of cybercrime, but they can also face liability if their systems, employees, or partners are involved—intentionally or negligently—in unlawful activities. Under Cambodia’s Criminal Code, E-Commerce Law, and Telecommunications Law, offences related to fraud, unauthorized access to systems, and misuse of telecommunications networks may carry criminal penalties, including fines and imprisonment.

In practice, cyber incidents often expose businesses to multiple layers of risk. A hacked email system can lead to financial loss, contractual disputes, and reputational damage. Employees who mishandle customer data or fall victim to phishing attacks can inadvertently expose a company to legal claims or regulatory scrutiny. Even where criminal prosecution is unlikely, civil liability and loss of business trust remain serious consequences.

Data Protection: A Fragmented Legal Framework

Cambodia does not yet have a comprehensive personal data protection law. However, this does not mean that businesses are free from data protection obligations. Data-related duties are spread across several laws, including the E-Commerce Law, Consumer Protection Law, Telecommunications Law, and sector-specific regulations. These laws impose general obligations to act in good faith, protect consumer interests, and prevent misuse of information.

Businesses that collect or process personal data—such as customer names, contact details, identification documents, or financial information—may face liability if that data is misused, disclosed without consent, or inadequately protected. In cross-border transactions, foreign partners may also require compliance with stricter international data protection standards, such as the EU’s GDPR, increasing contractual and operational risks for Cambodian companies.

Key Legal Risks Every Business Should Consider

First, contractual liability. Many commercial contracts now include confidentiality and data protection clauses. A data breach can trigger indemnities, termination rights, or damages claims, even in the absence of a specific data protection statute.

Second, reputational and commercial risk. Customers and business partners are increasingly sensitive to how their data is handled. A single incident can erode trust and affect long-term business relationships.

Third, regulatory and enforcement exposure. As Cambodia continues to develop its digital economy, regulatory oversight and enforcement are expected to increase. Businesses that fail to prepare may find themselves scrambling to comply with new requirements.

Practical Steps for Businesses

Businesses should adopt basic cybersecurity and data governance measures now. This includes internal data protection policies, employee training, secure IT systems, and well-drafted contracts with vendors and service providers. Proactive compliance not only reduces legal risk but also strengthens credibility with clients and partners.

In a rapidly evolving digital landscape, understanding cybercrime and data protection risks is no longer optional. For Cambodian businesses, legal awareness and preventive action are key to staying protected and competitive.