On April 14, 2021, the New York Department of Financial Services (“NYDFS”) announced a settlement with National Securities Corporation (“National Securities”), a licensed insurer, in connection with claims under the NYDFS Cybersecurity Regulation (23 NYCRR Part 500). The consent order requires payment of a $3M penalty and mandatory remediation in response to alleged failures to […]
Enforcement
NYDFS Reports Major Cybersecurity Settlement
In early March, the New York Department of Financial Services (NYDFS) announced a settlement involving a $1.5M penalty and mandatory remediation in response to a mortgage lender’s alleged failure to report a cyber breach, and other alleged cybersecurity failures. This enforcement action marks the second public enforcement action under 23 NYCRR Part 500 (the “Cybersecurity […]
Fifth Circuit Decision Raises Cyber Enforcement Complications for the U.S. Department of Health and Human Services
As the Biden administration begins detailing its regulatory and enforcement priorities, it faces a new challenge on the health data privacy and security front. In University of Texas M.D. Anderson Cancer Center v. United States Department of Health and Human Services, No. 19-60226 (5th Cir. 2021), the Fifth Circuit vacated a $4.3 million penalty against […]
Virginia Ready to Pass First State Privacy Statute after CCPA
Both houses of Virginia’s legislature recently passed the Virginia Consumer Data Protection Act (S.B. 1392; H.B. 2307) (the “VCDPA”). If approved by the state governor, the VCDPA would become the United States’ second comprehensive state privacy law behind the California Consumer Privacy Act (CCPA). The VCDPA is similar to the CCPA and the European Union’s […]
U.S. Takes Part in Multinational Efforts to Disrupt Netwalker Ransomware and Emotet Malware
On January 27 and 28, 2021, the U.S. Department of Justice (DOJ) announced two successful operations to disrupt two different strains of malware, Netwalker ransomware and a banking Trojan known as Emotet, which have affected victims around the globe and caused millions of dollars in damage in recent years. The law enforcement actions against Netwalker and […]