As reported here [http://www.proskauertaxtalks.com/2015/09/irs-provides-some-relief-after-data-hacks/], after last year’s customer data security breaches at major U.S. corporations, the IRS announced special tax relief for identity protection services provided to individuals affected by a security breach. In response to comments solicited in connection with that announcement, the Treasury Department and IRS have in Announcement 2016-02 [https://www.irs.gov/pub/irs-drop/a-16-02.pdf] extended that relief to no-cost identity protection services provided before a data breach.
Data Breaches
Washington State Amends Breach Notification Law to Expand Notification Requirements
By Chelsea Handler on
On April 23, 2015, Washington State Governor Jay Inslee signed into law a bill strengthening the state’s data breach notification law (amending Wash. Rev. Code §§ 19.255.010 and 42.56.590 and creating a new section). H.B. 1078 makes the following substantial changes to the existing law:
- Under the current law, businesses and agencies that own or license computerized data including personal information about a Washington resident must disclose any breach in the security of the system involving such personal information that is unencrypted. H.B. 1078 expands this requirement to include:
- both computerized and hard copy data that contain personal information that is not “secured;” and
- encrypted information when the person gaining unauthorized access to the data had access to the encryption key or an alternative means of deciphering the “secured” data. The amendment also provides a standard for encryption.
AT&T Pays $25 Million in FCC Settlement
By Laura McAleer on
In the largest ever data security enforcement action taken by the Federal Communications Commission (FCC), AT&T agreed to pay $25 million to resolve an investigation into consumer privacy violations at its call centers in Mexico, Colombia, and the Philippines. The FCC announced the settlement on April 8, 2015, stating that phone companies are expected to “zealously guard” their customers’ personal information and encouraging the industry to “look to this agreement as guidance.”
When is Data Security “Unfair”?
By David Munkittrick on
Data security is big news. And so is the Federal Trade Commission (“FTC”). Put the two together in a crucible of litigation, and it is sure to be a blockbuster. That is what the closely-watched case FTC v. Wyndham, now pending before the Third Circuit Court of Appeals, is shaping up to be.
Responding to the Anthem Cyber Attack
Authors: Roger Cohen, Paul Hamburger, Kristen Mathews, Ellen Moskowitz, Richard Zall
Anthem Inc. (Anthem), the nation’s second-largest health insurer, revealed late on Wednesday, February 4 that it was the victim of a significant cyber attack. According to Anthem, the attack exposed personal information of approximately 80 million individuals, including those insured by related Anthem companies.
Attention Retailers: Target Data Breach Ruling Finds Duty Owed to Issuer Banks
By Margaret A. Dale on
The Court hearing the Target data security breach litigation issued a ruling on December 2, 2014, largely denying Target’s motion to dismiss the Consolidated Amended Class Action Complaint in the Financial Institutions Cases. In his decision, Judge Magnuson found that Target owed the issuer banks a duty to protect customer…
FCC: The New Data Security Sheriff In Town
By David Munkittrick on
Data security seems to make headlines nearly every week, but last Friday, a new player entered the ring. The Federal Communications Commission (“FCC”) took its first foray into the regulation of data security, an area that has been dominated by the Federal Trade Commission. In its 3-2 vote, the FCC did not tread lightly – it assessed a $10 million fine on two telecommunications companies for failing to adequately safeguard customers’ personal information.
California Updates State Breach Notification Law, Expands Security Procedures to Entities that “Maintain” Personal Information
By Stacy Barrow on
On September 30, 2014, California took further steps to protect the personal information of its residents by amending several sections of its breach notification and information security laws (Cal. Civ. Code §§ 1798.81.5, 1798.82 and 1798.85). The amended law, which is effective January 1, 2015, updates existing law in three…