Data Breaches

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As the D.C. District Court in Wengui v. Clark Hill recently commented, “[m]alicious cyberattacks have unfortunately become a routine part of our modern digital world. So have the lawsuits that follow them….” The court’s decision in that case has added another data point to developing jurisprudence of the cyberattack landscape…

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 user privileges, move laterally into other environments and compromise the organization’s data.

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…

The developing coronavirus pandemic affects businesses and personnel within the state and elsewhere.  With more New Yorkers working from home, there are more opportunities for cyberattacks through unsecure remote connections and the public concern growing each day.

The New York SHIELD (“Stop Hacks and Improve Electronic Data Security”) Act was signed to law on July 25, 2019.  It is an amendment to New York’s data breach notification law.  The SHIELD Act provides a number of changes that we reported last year, including expanding the definitions of “private information” and “breach.”  The definition of “private information” now covers emails and passwords or security questions and answers, credit card details, and biometric data among others.  A “breach of the security system” now covers unauthorized access, where such access may have occurred if “the information was viewed, communicated with, used, or altered” without authorization.

Reflecting the movement to toughen data security laws on a state-by-state basis, on July 25, 2019, Governor Cuomo signed into law the Stop Hacks and Improve Electronic Data Security Act (the “SHIELD Act” or the “Act”). The Act amends New York State’s current data breach notification law, which covers breaches…

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.…

On March 21, 2018, South Dakota Governor Daugaard signed S.B. 62, enacting the state’s first data breach notification law, which will go into effect July 1, 2018. Previously, Alabama and South Dakota were the only U.S. states without data breach notification. As of July 2018, Alabama will be the…