Punitive compensation refers to financial penalties imposed on individuals or organizations found guilty of cybersecurity negligence or malpractice. Unlike compensatory damages, which aim to reimburse victims for losses, punitive compensation is designed to punish the offender and deter similar behavior in the future. In cybersecurity, this can involve fines or monetary awards ordered by courts or regulatory bodies when a party’s actions are deemed reckless, intentional, or grossly negligent. The goal is to promote higher standards of security and accountability across the industry, discouraging willful disregard for data protection laws, regulations, or best practices. Punitive compensation serves as a warning to potential offenders that serious consequences can result from failing to uphold cybersecurity responsibilities.