Cybersecurity Law - Page 3 of 5 - The Role of Law in a Digital World

The Importance of Encryption in the Loss of a Company-Issued Devices

By Thomas Ritter, April 12 2018

[social_warfare]

One of the leading causes of data breaches continues to be the loss of company-issued devices, all the more perplexing when you consider encryption. This article will explain what encryption is, how to deploy it, and the legal fallout for businesses who fail to implement it. The Case of the Stolen NASA Laptop In 2012, NASA made headlines for all the wrong (and same) reasons. A thief broke into a NASA employee’s car, stealing the employee’s NASA-issued laptop in the process. The laptop contained sensitive personally identifiable information on a “large number” of people, later found to be at least 10,000 employees. A relatively inconsequential inconvenience turned into a huge problem when the federal agency discovered the laptop’s hard drive wasn’t encrypted. The aftermath was costly to the tune of nearly $960,000 of taxpayers’ dollars. Money that was spent on a variety of fronts: notifying suspected victims, providing credit […]

SEC Reminds Public Companies of the Importance of Cybersecurity

By Thomas Ritter, March 1 2018

[social_warfare]

Last summer’s highly publicized Equifax breach prompted conversations (but inexplicably no action) by congressional lawmakers on a company’s legal responsibilities in lieu of a data breach. Of particular concern and outrage in the weeks after Equifax’s disclosure was news that company executives sold stock within mere days from the breach’s discovery. Although a special committee cleared the executives of any insider trading, the news of the coincidental stock sales was publicly panned. Similar suspicions were once again raised over news that Intel CEO Brian Krzanich sold $24 million worth of stock after his company learned of a major security vulnerability in its PC processors. As skepticism abounds over the legality of stock sales by public companies who suffer recent data and security incidents, the Securities and Exchange Commission has decided to join the discussion. Titled “Guidance on Public Company Cybersecurity Disclosures,” the SEC puts public companies on notice — Sellers […]

The Dangers of Weak Cybersecurity in Network Marketing

By Thomas Ritter, December 12 2017

[social_warfare]

A review of this past year’s news cycle illustrates the paramount importance of strong data security. Yahoo, Equifax, Uber, and the list could go on and on. These companies fell victim to data breaches. In turn, they all faced public relations nightmares not to mention ongoing congressional and regulatory investigations. Today’s cyber landscape is relatively straightforward — where any abundance of consumer information exists, cyber thievery is sure to follow. Enter network marketing companies. Primed with and in possession of valuable information attractive to hackers, data security should be of paramount concern to network marketing executives. So why isn’t it? In Part One of this two part series, I’ll explore the ramifications of a data breach for network marketing companies. In Part Two, I’ll give practical tips and advice on ways to both prevent and mitigate the legal consequences of a data breach. Big Money Behind Personal Information Stolen consumer […]

Privilege: The Before and After of a Cyber Breach

By Thompson Burton, October 6 2017

[social_warfare]

Let’s start with a trivia question. Q: What do the companies Target, Genesco, and Experian all have in common? Is it (A) they all experienced data breaches which exposed sensitive consumer information; (B) they all found themselves the subject of lawsuit(s) over the loss of this information; (C) they all invoked the doctrine of privilege — specifically under attorney-client and work product– to protect a retained forensic firm’s investigative findings; or (D) all the above. If you chose D, then you, dear reader, can go on your merry way reading. Cyber attacks and the loss of sensitive information are at the forefront of nearly every corporate executive’s mind. According to a recent study by the Business Continuity Institute, cyber attacks represent the number one concern among business professionals. A proliferation of high-profile breaches over the past twelve months (e.g., HBO, Yahoo, Democratic National Committee, etc.) have left owners of businesses […]

Equifax Cybersecurity Breach — What You Need To Know

By Thompson Burton, September 21 2017

[social_warfare]

By Thomas Ritter of Thompson Burton, PLLC The news that credit reporting agency Equifax suffered a data breach of sizable proportions (a projected 143 million people affected) set the information security community abuzz. The irony was not lost on anyone: One of the three main credit reporting agencies largely in charge of identity theft notification and prevention, Equifax’s loss of sensitive information now acts as a gateway into the future proliferation of widespread identity fraud. Although details continue to slowly emerge, here’s what we currently know, what’s important for you to know, and my suggestions on preventative measures and next steps. WHAT HAPPENED? Criminals gained access into Equifax’s internal system through a vulnerability in the company’s website software beginning in mid-May, and remained inside the system until late July. The perpetrators gained access to a variety of sensitive personally identifiable information, which includes (but may not be the entire scope […]