Cybersecurity

South Carolina Enacts Insurance Data Security Act

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South Carolina recently enacted a prescriptive data security law for insurers. The law bears resemblance to the New York Department of Financial Services (NYDFS) cybersecurity rules that entered into force last year. In short, the South Carolina law requires licensees (defined below) to develop and implement a comprehensive written information security program (a “WISP”) and to notify the South Carolina Department of Insurance of certain cybersecurity events. Effective on January 1, 2019, the law includes extended deadlines for compliance with the requirement to implement a WISP (July 1, 2019) […] Read more

NYDFS Cybersecurity Requirements Compliance Deadline Nears for Key Provisions

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September 4, 2018 marks the end of the transitional period for covered entities to comply with several key provisions of the NYDFS Cybersecurity Requirements that require certain systemic and sustained measures. These provisions include the encryption and audit trail requirements as well as ones relating to the implementation of monitoring policies, procedures, and controls, application security, and data retention limitations. Encryption (500.15): The regulation requires covered entities to encrypt Nonpublic Information held or transmitted by a covered entity both in transit over external [...] Read more

LabMD: The End of the FTC in Cyber or Just a New Path?

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The U.S. Court of Appeals for the Eleventh Circuit recently issued its opinion in LabMD, Inc. v. FTC, No. 16-16270 (11th Cir. June 6, 2018), declaring unenforceable a Federal Trade Commission (FTC) order requiring LabMD to implement an extensive cybersecurity plan. The case is noteworthy for its lengthy procedural background—during which time LabMD became defunct—and its holding, which has called into question the FTC’s authority to impose wide-ranging, comprehensive cybersecurity plans. The LabMD matter dates to 2005, when LimeWire file sharing software was installed on a company computer, [...] Read more

Oregon and Arizona Amend Breach Notification Laws

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Amended breach notification laws recently took effect in Oregon or will soon take effect in Arizona. In both cases, the amended laws heighten existing requirements and reflect broader trends in the breach notification landscape at the state level, including by expanding the scope of “personal information” that triggers notification and requiring notification within a specified timeframe. In Oregon’s case, the amendments supplement already-existing data security requirements for companies the handle the personal data of Oregon residents. Oregon Broadened Definition of Personal Information Like [...] Read more

FBI Publishes its 2017 Internet Crime Report

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The FBI recently published its 2017 Internet Crime Report highlighting trends and statistics compiled by the FBI’s Internet Crime Complaint Center (“IC3”) during 2017. The report compiles data from a total of 301,580 complaints which reported losses of over $1.4 billion. In addition to an explanation of the IC3’s history and operations, the report includes five “hot topics” from 2017: business email compromise (“BEC”), ransomware, tech support fraud, extortion, and the Justice Department’s Elder Justice Initiative. Business Email Compromise: This category of attack targets [...] Read more

Vermont Data Broker Law Now in Effect

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Under a Vermont law that recently came into effect, data brokers that process information regarding Vermont residents are now subject to registration and security requirements. Included in the new law are three notable components: (1) a broad statutory definition of a “data broker,” (2) an annual registration requirement for data brokers, and (3) reporting on data broker security breaches. Definition of a “Data Broker” The law takes a technology-neutral approach to its definition of a “data broker,” instead defining the term based on the normal functions of the business. The statute [...] Read more

Alston & Bird Named to ATL Top Law Firm Privacy Practice Index

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Alston & Bird’s Privacy & Data Security Team has been named to the first-annual Above The Law (ATL) Top Law Firm Privacy Practice Index. Firms named to the Index were rated by nearly 300 in-house counsel on the “strength and quality” of their data privacy and/or cybersecurity practices. ATL also assessed firms on thought leadership in the area of privacy through their publication of white papers, blogging, media contributions, and speaking engagements. To read more about the Index, click here. [...] Read more

SEC Announces Its First Enforcement Action Over Cyber-related Disclosures

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The Securities and Exchange Commission’s $35 million settlement with Altaba Inc., the successor in interest to Yahoo! Inc., is the first civil penalty of its kind for a data breach and underscores the agency’s increasing focus on public companies’ cybersecurity disclosure obligations. A cross-practice team from our Securities Litigation and Cybersecurity Preparedness & Response groups examined the SEC action in an advisory published on April 27, 2018. To read the full advisory, please click here. [...] Read more

Seventh Circuit Affirms Dismissal of Schnuck Markets Data Breach Lawsuit

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The United States Court of Appeals for the Seventh Circuit recently affirmed the dismissal of a putative class action brought by financial institutions against Schnuck Markets, Inc., following a data breach impacting Schnuck beginning late 2012. The plaintiffs attempted to assert claims of negligence, negligence per se, various contract claims, and violation of Illinois consumer protection laws, alleging damages in the form of employee time to investigate and resolve fraud claims, payments to indemnify customers for fraudulent charges, and lost interest and transaction fees based on changes in [...] Read more

DHS and FBI Issue a Joint Technical Alert with UK Warning Russian State-Sponsored Cyber Attacks

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On April 16, 2018, the Department of Homeland Security (DHS), the Federal Bureau of Investigation (FBI), and the United Kingdom’s National Cyber Security Centre issued a joint Technical Alert (TA), alerting the worldwide cyber exploitation of network infrastructure devices by Russian state-sponsored cyber actors.  The TA explains primary targets to be government and private-sector organizations, critical infrastructure providers, and the Internet service providers (ISPs) supporting these sectors.  The affected systems include: Generic Routing Encapsulation (GRE) Enabled Devices; Cisco Smart [...] Read more