Cyber risk analytics firm KYND has warned insurers that lawsuits linked to routine website tracking practices in the US are rising sharply, creating a new and potentially scalable source of liability across SMB portfolios.
The findings, published in KYND’s white paper Privacy Risk in 2026, show that litigation linked to website tracking and digital wiretapping — the recording of electronic communications without user consent — has increased from a few hundred cases annually to more than 2,000.
Unlike traditional cyber claims, these cases often do not involve data breaches or ransomware attacks. Instead, they focus on how websites collect and share user information through tools such as marketing pixels and analytics trackers.
Because many privacy laws allow claims without proof of financial harm, KYND said these cases can be brought at scale and often target routine website behaviour that is widespread across businesses.
To assess how the risk appears in practice, KYND analysed nearly 10,000 North American organisations. The study found that 17.7% had tracking technologies operating without visible user consent. Among SMBs with revenues under $1bn, that figure rose to 20.2%.
Andy Thomas, CEO of KYND, said, “Privacy risk is no longer just about data breaches. What may seem like a minor compliance issue is becoming a repeatable and scalable source of litigation, particularly across the SMB market. We’re seeing a shift towards claims driven by everyday website behaviour.”
The report highlights that for insurers, the risk profile differs from traditional cyber threats. Rather than single catastrophic events, these claims are typically lower in severity but occur more frequently.
According to KYND, that combination creates the potential for accumulation risk if similar website configurations are widespread across insured businesses.
Thomas explained, “For insurers, this creates a new challenge. These risks are scalable, often hidden, and can accumulate across portfolios in ways that are difficult to detect without the right visibility.”
The research suggests SMBs are particularly exposed due to reliance on default website tools, limited technical resources and the widespread use of third-party analytics and marketing technologies.
“The key for insurers is visibility. These risks aren’t hidden deep inside systems, they’re happening in plain sight on company websites. By bringing that external data into underwriting and ongoing portfolio monitoring, insurers can spot exposure earlier, differentiate risk more effectively, and avoid unwanted accumulation,” said Thomas.
Read the full research from KYND here.
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