Category Archives: Cyber Attacks

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Sony Cyberattack Lawsuit Settles for $8 Million and Establishes the New Mass Tort Class Action

The emergence of the cyber attack class action as the new mass tort was further evidenced when Sony, less than one year after the first class action was filed, has agreed to pay up to $8 million to reimburse current and former employees for losses, preventative measures and legal fees related to last year’s data breach. The agreement must still be approved by a federal judge in the Central District of California, but, under the proposed terms, Sony will pay “up to $10,000 a…

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Data Breach “Sky Is Falling”

Much like Chicken Little, data breach vendors and pundits continue to decry that the data breach sky is falling!  But is it?  A group of researchers set out to answer this very question. “Neither size nor frequency of data breaches has increased over the past decade,” concludes a new statistical analysis by Benjamin Edwards, Steven Hofmeyr and Stephanie Forrest presented during the June 2015 Workshop on the Economics of Information Security in the Netherlands. Instead, the three argue, the increases that have attracted recent media…

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PwC Issues 2015 Cybercrime Survey Results

“It’s been a watershed year for cybercrime,” explains PricewaterhouseCoopers LLC in its 2015 report analyzing data from 500 executives across US businesses, law enforcement and government agencies.  The survey and report, co-sponsored by PwC, CSO, Carnagie Mellon University and the United States Secret Service, provides a comprehensive analysis of trends in cybercrime and cyberthreats, as well as security spending and overall manage of these growing business risks. This year, a record 79 percent of respondents detected a security incident during the past 12 months, with…

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Military Retaliation in the Age of Cyber Warfare

The Obama administration has concluded that the recent Chinese cyberattack on the Office of Personnel Management rises above the level of traditional espionage, and that retaliation is the most suitable response to the theft of 20 million American’s personal information. Exactly what the retaliation may entail and when it will come, however, are open questions. Over the past year, United States government and military computer systems have been compromised by what many believe are foreign governments, including Russian attacks on the White House, State

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Millions Exposed in Multiple Heath Data Breaches

This summer, millions of medical patients have learned that their personal information, including names, addresses, birthdates, Social Security numbers, Medicare or health plan ID numbers, and some medical information (conditions, medications, procedures and test results) may have been exposed as a result of two separate security breaches. California’s UCLA Health announced on July 21, 2015 that their information system has been attacked, possibly beginning in November 2014, and that the unencrypted medical information of over 4.5 million patients may have been accessed.  This latest breach…

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New Federal Cybersecurity Legislation and Regulations Proposed in Washington DC

This week, new legislation and regulations have been proposed to address cybersecurity concerns in new automobiles and the nation’s Bulk Electric System. On Tuesday, Senators Edward J. Markey (MA) and Richard Blumenthal (CT) introduced new legislation to address the hacking risks associated with “connected vehicles.”  The Security and Privacy in Your Car Act of 2015 would mandate that sensitive software systems be isolated and additional safeguards be added “to protect consumers from security and privacy threats to their motor vehicles”.  The legislation followed a 2014…

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Congress and the Internet of Things

Despite the trend toward the Internet of Things, some institutions are taking a slow and cautious approach given the possible security vulnerabilities. This includes the U.S. Congress. The Internet of Things usually refers to machine to machine communication.  For example, consider the Microsoft band that monitors heart rate, steps, calories, burned, etc. (which, incidentally, the co-chair of the Congressional Internet of Things Caucus wears). Recent breaches into government computers including the massive data breach at the Office of Personnel Management (“OPM”) clearly demonstrate…

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Can A SAFETY Act Designated Product Provide Cyber-Attack Liability Protection?

“So if you use FireEye’s product you basically are prevented from being sued in the criminal justice system of America, which can save a lot of money.” According to CEO Dave DeWalt’s recent comments, it sounds like the U.S. Government stamped FireEye with a seal of approval — a ringing endorsement that’s worth a closer look.  FireEye, Inc. was issued “Certification” under the SAFETY Act for its Multi-Vector Execution (MVX) Engine and Cloud Platform.  It isn’t the only SAFETY Act approved technology; DHS’s website…

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Sony Class Action Moves Forward

Because Sony’s former employees “face ongoing future vulnerability to identity theft” they can proceed with their class action, a California District Court ruled on Monday.  The case, Corona v. Sony Pictures Entm’t, Inc., is linked to the North Korean hackers who tried to stop Sony from releasing the movie The Interview.  It was filed less than a month after Sony became aware of the attack. Relying on the Ninth Circuit’s decision in Krottner v. Starbucks, the court held that the plaintiffs have…

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Federal Cybersecurity Problems “Decades in the Making”

Yesterday, the House Oversight Committee received testimony from federal officials regarding the April 2015 cyberattack on the Office of Personnel Management (OPM), which compromised the personal information of approximately 4 million government employees and retirees, including social security numbers.  The executive branch delayed reporting the incident until June 4, much to the dismay of the House Committee. OPM head Catherine Archuleta was under fire for what Committee Chairman Jason Chaffetz, R-Utah, called the “most devastating” cyberattack in United States’ history.  Ms. Archuleta attempted to avoid…

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