Category Archives: Data Breach

California Updates Data Breach Notification Statute for 2017

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California, which has historically been one of the states at the vanguard of data breach notification issues, has made an update to its statute that takes effect on January 1, 2017. The update will require companies to notify affected individuals of a data breach of encrypted information, if “the encryption key or security credential was, or is reasonably believed to have been, acquired by an unauthorized person and the person or business that owns or licenses the encrypted information has a reasonable belief that the encryption key or security credential could render that personal information [...] Read more

New York State Financial Services Regulator Issues Proposed Cybersecurity Regulations

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On September 13, 2016, Governor Andrew Cuomo announced the issuance of proposed “first-in-the-nation” cybersecurity regulations for entities regulated by the New York Department of Financial Services (DFS), including jurisdictional banks, insurance companies, and other financial institutions.  The proposed regulation will be subject to a 45-day comment period prior to being issued as a final rule.  Once finalized, the regulation would become effective on January 1, 2017, at which point a 180 day "transitional period" would go into effect, during which entities would need to come into compliance [...] Read more

Advocate Health Care Network Agrees to Pay $5.55 Million to Settle Potential HIPAA Penalties

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On August 4, 2016, the Office of Civil Rights (“OCR”) announced that Advocate Health Care Network (“Advocate”), Illinois’ largest fully-integrated health care system, has agreed to pay a record-breaking $5.55 million to settle claims of multiple Health Insurance Portability and Accountability Act (“HIPAA”) violations involving electronic protected health information (“ePHI”).  The substantial settlement stems from the extent and duration of the alleged noncompliance and the large number of individuals whose information was compromised, among other factors. The OCR initiated [...] Read more

Alston & Bird Issues Advisory on Six Myths of Breach Response

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Alston & Bird recently issued an Advisory entitled “Six Myths of Breach Response,” authored by Jim Harvey. As data breaches are on the rise, so are the challenges that businesses face in handling these security incidents. This Advisory identifies six strategic pitfalls to avoid when responding to breaches. The Advisory addresses the true significance of public notification, common mistakes in preserving attorney-client privilege, and tough choices regarding the selection of public relation, investigative, and legal counsel. Jim Harvey co-chairs Alston & Bird’s Cybersecurity Preparedness [...] Read more

Illinois Makes Extensive Changes to Data Breach Notification Law

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  On May 6, 2016, Illinois Governor Bruce Rauner signed HB1260, which significantly updates the state’s Personal Information Protection Act. The changes take effect on January 1, 2017. When the new law becomes effective, Illinois’ data breach notification statute will include one of the broader definitions of the information which, if breached, will trigger notification to individuals. Starting in 2017, the definition of personal information in the Act will include an individual’s full name, or first initial and last name in combination with their health insurance policy number [...] Read more

Supreme Court Holds Congress Cannot Confer Automatic Standing By Statute

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The Supreme Court has issued its much anticipated opinion in Spokeo Inc. v. Robins, No. 13-1339, 578 U.S. ___ (2016) (click here for a prior post detailing the procedural history and case background).  The Supreme Court granted certiarori in Spokeo to determine whether a bare violation of a statute – the Fair Credit Reporting Act (“FCRA”) – is sufficient to confer Article III standing, which requires that an injury be both (a) concrete and particularized and (b) actual or imminent.  Below the Ninth Circuit held that Robins’ allegation of an FCRA violation were sufficient, but the Supreme [...] Read more

Nebraska Makes Changes to Data Breach Statute

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Nebraska Governor Pete Ricketts has signed LB835 into law, updating the state’s data breach notification statute. The changes take effect on July 20, 2016. With the updates, Nebraska joins a growing number of states that include a username or email in combination with a password or security question and answer that would permit access to an online account in the definition of personal information which, if acquired by an unauthorized person, would require notice. In addition, the statute has been modified to require notice to the state’s Attorney General concurrent with notice provided [...] Read more

Turkey’s New Data Protection Law

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Turkey’s new “Law on the Protection of Personal Data” has entered into effect following passage by the Turkish Parliament in late March and official publication last week.  The Data Protection Law adopts a broadly European model for data protection and helps clarify key aspects of the regulation of personal data under Turkish law. This blog post examines the law and highlights certain important provisions. Scope The Data Protection Law applies to the “personal data” of natural persons where that personal data is processed “wholly or partly by automatic means,” and to non-automatic [...] Read more

Kim Peretti Named to Cybersecurity Docket’s “Incident Response 30”

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Kim Peretti, partner and co-chair of Alston & Bird’s Cybersecurity Preparedness & Response Team, has been named to Cybersecurity Docket’s inaugural “Incident Response 30.” Described by the publication as the “30 best and brightest data breach response lawyers,” the list “honors incident response attorneys and compliance professionals who not only have the right stuff to manage a data breach response, but are also the kind of professionals who are critical to have on speed-dial when the inevitable data breach occurs.” Cybersecurity Docket is a comprehensive and timely [...] Read more

Alston & Bird Issues Cyber Alert on the EU Network Information Security Directive

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This morning, Alston & Bird partners Jim Harvey and Jan Dhont issued an Advisory on the EU’s forthcoming Network Information Security Directive (“NIS Directive”).  National laws passed to implement the NIS Directive will impose substantial new compliance responsibilities on providers of “essential services,” as well as on a broad range of “digital service providers”—potentially even if a digital service provider's only EU presence is a website.  Companies subject to the NIS Directive will be obligated to implement internal cybersecurity measures.  Moreover, the NIS Directive [...] Read more