Digital property security breaches and virtual ownership enforcement: a cyber law perspective

The digital age has produced new forms of property-virtual assets, Non-Fungible Tokens (NFTs), and cloud-based intellectual property-that raise pressing challenges for ownership rights and legal protection. This study examines the impact of digital property security breaches and digital contract compliance on virtual ownership enforcement, fundamental rights, and liability outcomes, with particular attention to the disproportionate effects on vulnerable user groups.

Drawing on a structured expert-assessment dataset of 240 valid observations compiled from court case records, platform transparency reports, and regulatory documents covering 2018-2024, the study applies Structural Equation Modeling (SEM), independent samples t-tests, and Analysis of Variance (ANOVA) to assess relationships among six constructs: Digital Property Breach Characteristics (DPBC), Digital Contract Compliance (DCC), Virtual Ownership Enforcement (VOE), Fundamental Rights Impact (FRI), Liability and Compensation Outcomes (LCO), and Vulnerable User Groups (VUG).

Higher breach frequency and severity significantly reduce enforcement effectiveness (p < 0.001) and negatively affect fundamental rights. Non-compliance with contractual terms is associated with increased liability exposure (p < 0.001). Rights violations and enforcement delays are more pronounced among vulnerable populations, including women, children, and marginalized communities.

These results underscore the need for stronger digital property governance and more robust, rights-based liability frameworks.