Author: Ken Dort (page 1 of 2)

A.G. Schneiderman Announces SHIELD Act to Protect New Yorkers

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The Stop Hacks and Improve Electronic Data Security Act (SHIELD Act) was introduced in the New York legislature in early November and would amend New York’s state breach notification law.  The bill was announced after the release of a New York Office of the Attorney General report found a nearly 60% hike in data breaches affecting state residents in 2016 and following the Equifax breach in September, which A.G. Schneiderman is investigating.

Among other things, the SHIELD Act would:

  • Require reasonable security for private information, using standards tailored to the size of the business, while avoiding duplicate regulations and providing incentive to businesses that certify security compliance and provides clear examples of safeguards (e.g., technical, administrative, and physical measures).
  • Carve out “compliant regulated entities,” which are defined as those already regulated by, and compliant with, existing or future regulations of any federal or NYS government entity (including NYS DFS cybersecurity regulations; regulations under Gramm-Leach-Bliley; HIPAA regulations) by deeming them compliant with this law’s reasonable security requirement.
  • Provide safe harbor from AG enforcement actions under this law for “certified compliant entities,” (those with independent certification of compliance with aforementioned government data security regulations, or with ISO/NIST standards).
  • Provide a more flexible standard for small business (less than 50 employees and under $3 million in gross revenue; or less than $5 million in assets): requiring reasonable safeguards “appropriate to the [small business’s] size and complexity.

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U.S. Government Restricts the Use of Kaspersky Cybersecurity Software

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Earlier this month, the Department of Homeland Security (DHS) issued a binding order restricting the government’s use of cybersecurity software developed by Moscow-based Kaspersky Labs.

Government departments and agencies have 90 days to remove or discontinue use of any Kaspersky Labs software products—but the buck doesn’t stop there. Kaspersky boasts more than 400 million users and 270,000 corporate clients, meaning organizations that provide any services involving federal information systems would be wise to investigate whether they, either directly or indirectly, use Kaspersky products and services. Continue reading

White House Issues ATC Report and Seeks Comments on IT Implementation Plan

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On August 30, the Trump administration unveiled an ambitious plan to upgrade the federal government’s cyberdefenses by shifting digital functions to the cloud and prioritizing security upgrades for the government’s most important systems.  In this plan, which in many ways continues the cyberefforts of the Obama administration, the White House’s American Technology Council (ATC) justified this large-scale approach due to what it characterized as the federal government’s longstanding less-than-adequate cyberefforts in the face of years of mounting digital threats.

The plan, grounded in the President’s May 2017 Executive Order (EO) 13,800,   tasked  the Director of the ATC to coordinate the preparation of a report to the President from the Secretary of the Department of Homeland Security (DHS), the Director of the Office of Management and Budget (OMB), and the Administrator of the General Services Administration (GSA), in consultation with the Secretary of Commerce (Commerce), regarding the modernization of Federal Information Technology (IT).  In accordance with EO 13,800, a draft IT Modernization report was submitted to the President last week.

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DC Circuit Deepens Circuit Split on Data Breach Class Standing

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***09/06/17 UPDATE***

On Wednesday, September 6, the DC Circuit Court of Appeals granted an unopposed motion to stay its decision that reversed a district court order dismissing a potential class action arising from a 2014 data breach Chantal Attias et al. v. CareFirst Inc. et al., case number 16-7108.  The order stays the mandate until December 7, 2017.

***ORIGINAL POST***

Last month, a three-judge panel on the United States Court of Appeals for the District of Columbia unanimously reversed a district court order dismissing a potential class action arising from a 2014 data breach,  Chantal Attias et al. v. CareFirst Inc. et al., case number 16-7108.  In reversing that order, the court permitted a health insurance company’s customers to proceed against that carrier, CareFirst, which serves one million customers in the District of Columbia, Maryland and Virginia.
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Fact Sheet: NYDFS Cyber Regulations

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The New York Department of Financial Services’ Cyber Requirements for Financial Services Companies, 23 NYCRR 500 (“Cyber Regulations”) went into effect on March 1, 2017. The Cyber Regulations are intended to require financial companies to assess their internal cybersecurity risks and develop a cybersecurity program to protect customer information and their IT systems, as well as respond, recover, and report cyber threats. The Cyber Regulations establish a comprehensive set of proactive cybersecurity standards for companies to follow, involving everything from appointing a designated Chief Information Security Officer (CISO) to submitting an annual compliance notice, and conducting penetration testing and vulnerability assessments.

Here is an overview of some key terms, requirements and deadlines under these new regulations.

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Global Ransomware Attack: What Your Organization Needs to Know Now

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The WannaCry cyberattack on Friday, May 12, 2017 was the largest international ransomware attack to date.

Victims of the attack range in size—from Fortune 500 to small/medium-sized businesses—and industry—from academic institutions to large banks, health care providers and transportation networks. The U.K.’s health care regulatory agency, the National Health Service (NHS), was a major target. The attack’s devastating scale in exploiting data security vulnerabilities is a good reminder of how critical it is for health care organizations to conduct comprehensive security assessments immediately and regularly.

We took a close look at the WannaCry ransomware incident and have some tips for what organizations need to know to minimize their risk in this article.

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