Justice Minister Dermot Ahern is to set up an expert group to examine if legal changes are needed to provide greater protection for people's personal data.
The move follows concern about the increasing number of data breaches both in Ireland and abroad.
The review group will be asked to advise on whether it should become compulsory for public and private bodies to report breaches and whether they should be fined if they fail to do so.
Mr Ahern says the group will look at how other countries deal with the problem.