Proskauer on Privacy

Category Archives: Cybersecurity

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2022 Trends in Privacy and Data Security Law

As the National Security Agency (NSA) noted in its 2022 cybersecurity yearly review, “[c]yberspace is dangerous.” Reports of sophisticated cyberattacks and ransomware threats were prevalent in the past year. The government, manufacturers, and others further developed standards for securing digital infrastructure like 5G, cloud services, cryptography, internet protocols, and internet of things (IoT) devices. In … Continue Reading

Shining a Light on the Corporate Transparency Act: FinCEN’s Rules for Beneficial Ownership Reporting

On January 1, 2021, Congress enacted the Corporate Transparency Act as part of the Anti-Money Laundering Act of 2020 to “better enable critical national security, intelligence, and law enforcement efforts to counter money laundering, the financing of terrorism, and other illicit activity.” FinCEN issued the final rule on Beneficial Ownership Information Reporting Requirements on September … Continue Reading

Travelling outside the EU: French Data Protection Authority Publishes a Checklist to Secure Phones and Laptops

Amid fresh fears about data protection, on November 14th, France’s data protection authority, the Commission Nationale de l’Informatique et des Libertes (CNIL) published a checklist of recommended actions travellers should take to secure phones, computers and tablets when travelling outside the European Union. Read the full article on International Employment Lawyer.… Continue Reading

Paying the Ransom in Response to a Ransomware Attack can Sometimes Backfire

One of the key decisions that needs to be made in the aftermath of a successful ransomware attack is whether or not the victim organization can or should pay the ransom.  Of course, there are many considerations that go into such a decision – for example, whether the payment is legally permissible, the ease of … Continue Reading

SolarWinds: A Lesson on How Companies Victimized by Data Breaches Can Quickly Become the Target of Litigation and Regulatory Investigations

In 2020, SolarWinds Corp., a company that provided information technology software to private and government entities, was the victim of a cybersecurity breach.  Russian hackers are believed to have slipped malicious code into a SolarWinds software product called Orion, which was then used to infect, and in certain cases, compromise, SolarWinds customers.  As a consequence, … Continue Reading

Held to Ransom: How Cyberattacks Can Become a Legal and Regulatory Odyssey for a Private Investment Fund

Where business-critical information or platforms are at stake, many commercial parties will seriously consider immediately paying the ransom hoping to regain control of operations, secure client data and avoid continued business disruption and negative publicity. However, businesses may wish to pause. Cyberattacks, by their very nature, know no borders and nor therefore should a private … Continue Reading

DOJ’s Civil Cyber-Fraud Initiative Secures More Than $9 Million in Two False Claims Act Settlements for Alleged Cybersecurity Violations

Last fall, the United States Department of Justice (“DOJ”) launched its Civil Cyber-Fraud Initiative (“CCFI”) as part of its effort to “combat new and emerging cyber threats to the security of sensitive information and critical systems.” Led by the Civil Fraud Section of DOJ’s Commercial Litigation Branch, the CCFI leverages the False Claims Act (“FCA”) … Continue Reading

Department of Health and Human Services Issues Request for Information on Cybersecurity Standards

The Department of Health and Human Services (“HHS”) has issued a formal request for information from the public about how regulated entities are implementing industry recognized security practices. The request for information represents a chance for the private sector to contribute to HHS regulation. Interested parties have until June 6, 2022 to submit comments. HHS … Continue Reading

Noteworthy Trends in Privacy and Data Security

Reports of sophisticated cyberattacks and ransomware threats dominated 2021 headlines, along with evolving state data privacy laws in the absence of comprehensive federal data protection regulation. Cross-border data transfers between the EU and US still lack a clear, streamlined mechanism while national authorities continue to negotiate an EU-US Privacy Shield replacement. The past year also … Continue Reading

English High Court Clarifies Appropriate Causes of Action in Data Claim Where Defendant Was a Victim of Third-Party Cyber-Attack

In the recent and significant Warren v DSG Retail Ltd [2021] EWHC 2168 (QB) decision the High Court in England clarified the limited circumstances in which claims for breach of confidence, misuse of private information and the tort of negligence might be advanced by individuals for compensation for distress relating to a cyber-security breach where … Continue Reading

INDEPTH: Data Protection & Privacy Laws 2021

A heightened risk for cyberattacks and data breaches calls for companies to remain diligent as they navigate a patchwork of federal, state, local and sector-specific privacy and data protection laws, regulations and guidance. For Financier Worldwide, Margaret A. Dale and Ryan P. Blaney deliver commentary on the evolving landscape and offer considerations for companies looking … Continue Reading

Navigating the New Standard Contractual Clauses for International Data Transfers under the GDPR

The final version of the new standard contractual clauses (“SCCs”) were published by the European Commission on June 4, 2021. Many organizations that transfer or receive personal data originating in the European Economic Area (“EEA”) outside the EEA will be required to implement these SCCs with their customers, suppliers and affiliates by December 2022 to … Continue Reading

U.S. Department of Labor Steps into the Cybersecurity Discussion

Formally wading into the cybersecurity discussion for the first time, on April 14, 2021, the U.S. Department of Labor (DOL) posted on its website a suite of new guidance, including Tips for Hiring a Service Provider with Strong Cybersecurity Practices, Cybersecurity Program Best Practices, and Online Security Tips for Participants and Beneficiaries. By way of background, cybersecurity has … Continue Reading

Notable Trends in Privacy and Data Security

COVID-19, the California Consumer Privacy Act (CCPA) coming into force, and the invalidation of the EU-US Privacy Shield already made 2020 an especially active year for privacy and data security risks and obligations. Rounding out the year, December then brought discovery of the unprecedented Solarwinds cyberattack affecting government agencies, critical infrastructure entities and others. Thus, looking ahead, … Continue Reading

SolarWinds Vendor Supply Chain Attack: A Timely Reason to Review Procedures for Risk Assessments and Vendor Contracts

As reported last week, a state-sponsored hacker may have breached multiple U.S. government networks through a widely-used software product offered by SolarWinds. The compromised product, known as Orion, helps organizations manage their networks, servers, and networked devices. The hacker concealed malware inside a software update that, when installed, allowed the hacker to perform reconnaissance, elevate … Continue Reading

Regulatory Crackdown on Ransomware

In recent years, Ransomware has evolved from merely encrypting files/disabling networks in solicitation of ransom, to sophisticated attacks that often involve actual data access, theft and sometimes, the threat of publication. These sophisticated malware attacks frequently destroy backups and provide criminals even more leverage over their victims, coercing them to pay ransoms.  Ransomware does not … Continue Reading

Cybersecurity: SEC and Other Regulators

In today’s world, cybersecurity breaches and threats are pervasive concerns for any business entity, without exception. Working from home arrangements due to COVID-19 constraints only magnify the risk and create further vulnerabilities for companies. Companies should be aware of (1) the key cyber threats they face, (2) the consequences of a breach, and (3) the … Continue Reading

Trends in Privacy and Data Security

Privacy and cybersecurity remain top priorities for regulators and companies alike, as the threats posed by large-scale data breaches and other cyber incidents show no signs of waning. Companies and their counsel must monitor privacy and data security-related enforcement trends, new laws and regulations, and key emerging issues to mitigate risks and minimize potential liability. … Continue Reading

FTC Ramps up COVID-19 Activity After Improving its Data Security Enforcement Orders

With the spread of the novel coronavirus (COVID-19), cybersecurity criminals and scammers are ramping up their efforts to target vulnerable employers and workforces. The FTC announced today that since January they have received more than 7,800 fraud complaints from consumers related to the COVID-19 pandemic. But the FTC isn’t slowing down either. Even with the … Continue Reading

SEC Charges Broker-Dealer and Investment Adviser with Violations of the Safeguards Rule and Identity Theft Red Flags Rule

In September 2018, the Securities and Exchange Commission (“SEC”) announced that broker-dealer and investment adviser Voya Financial Advisors Inc. (“VFA”) agreed to pay $1,000,000 to settle charges related to alleged failures in its cybersecurity policies and procedures relating to a data breach that compromised the personal information of 5,600 customers. The SEC charged VFA with … Continue Reading

New York DFS Cybersecurity September 2018 Deadline

The New York Department of Financial Services cybersecurity regulation 23 NYCRR 500 (the “Regulation”) came into effect in March 2017 and established four staggered compliance deadlines for its various requirements. By the third deadline of September 3, 2018, Covered Entities are required to be in compliance with sections 500.06 (audit trails), 500.08 (application security), 500.13 … Continue Reading
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