As independent auditors to public companies and business development companies begin to make required disclosure of Critical Audit Matters (CAMs) to the audit committee, such reports are beginning to include discussion of information security programs and information technology controls. Independent auditors have treated material weaknesses in certain information technology controls as material weaknesses in internal […]
cybersecurity
Georgia Supreme Court Clarifies There Is No Duty to Safeguard Personal Information from a Data Breach
The Georgia Supreme Court recently issued a decision holding that there is no duty to safeguard personal information from a data breach under Georgia law. Georgia Department of Labor v. McConnell involved the accidental disclosure of a spreadsheet that contained the name, social security number, home telephone number, email address, and age of thousands of […]
DOJ Releases “Best Practices for Victim Response and Reporting of Cyber Incidents,” Version 2.0
On September 27, 2018, the Department of Justice Computer Crime and Intellectual Property (CCIPS) Cybersecurity Unit released Version 2.0 of its “Best Practices for Victim Response and Reporting of Cyber Incidents.” Originally issued in 2015, the updated guidance seeks to help organizations better equip themselves to be able to respond effectively and lawfully to cyber […]
SEC Brings First Enforcement Action for Violation of the Identity Theft Red Flags Rule
On September 26, 2018, the SEC brought its first ever enforcement action for violations of Regulation S-ID (the “Identity Theft Red Flags Rule”), 17 C.F.R. § 248.201, in addition to violations of Regulation S-P, 17 C.F.R. 30(a) (the “Safeguards Rule”). Regulation S-ID and Regulation S-P apply to SEC-registered broker-dealers, investment companies, and investment advisers, and […]
South Carolina Enacts Insurance Data Security Act
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 […]