Category Archives: Cyber Breach

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IRS Student Loan Application Program Breach Affecting up to 100,000 Taxpayers

On April 6, 2017, IRS Commissioner John Koskinen testified during a Senate Finance Committee meeting that the personal data of up to 100,000 taxpayers may have been compromised by hackers accessing both students’ and parents’ tax information through the Data Retrieval Tool (DRT), a free application for federal student aid data retrieval connected with the Free Application for Federal Student Aid (FAFSA). Obtaining such information allowed these hackers to file fraudulent tax returns and steal refunds. The last breach of this magnitude occurred in 2015,…

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The Yahoo Class Action: Plaintiff’s Bar Finds a New Cottage Industry

The only “surprise” in the Yahoo class action complaint, filed Friday, September 23, 2016, is that Yahoo issued a press release announcing the breach a mere one day earlier.  The class action complaint, undersigned by three law firms in San Francisco, Boca Raton, and New York, seeks certification for: “All persons within the United States whose personal information was accessed following the data breach that Yahoo announced in a press release on September 22, 2016.”  Indeed, the complaint makes a number of allegations relating directly…

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lawsuit

Something to Keep an Eye On: Insurers and Insureds to Duke it Out in Data Breach Coverage Suit

A new Indiana coverage litigation regarding a CGL policy (and umbrella policy) may provide more guidance about how courts will approach data breach coverage under traditional insurance products. In National Fire Insurance Company of Hartford v. Medical Informatics Engineering, Inc. et al. (N.D. Ind., No. 16-cv-152), two CNA companies initiated a declaratory judgment action seeking a ruling they do not have the duty to defend or indemnify Medical Informatics Engineering, Inc. or NoMoreClipboard, LLC (collectively Medical Informatics) in relation to lawsuits filed against Medical Informatics. …

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Credit Card Payment Coverage Declined: Cyberinsurer Not Obligated to Reimburse P.F. Chang’s for PCI Liability

In the most significant cyberinsurance coverage decision to date, an Arizona federal district court in P.F. Chang’s China Bistro v. Federal Insurance Co., No. CV-15-01322-PHX-SMM (D. Ari. May 31, 2016), granted summary judgment to Federal Insurance Company, acknowledging it had no duty to reimburse P.F. Chang’s China Bistro for payment card industry liability assessments under the CyberSecurity policy issued by Federal to P.F. Chang’s corporate parent. This decision represents a significant victory for cyberinsurers insofar as it upholds insurers’ marketing strategy of making available…

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Data Protection

Inadvertent Data Breach May Trigger Insurer’s Duty to Defend

As previously posted, in many instances of data breach, information was exposed due to the negligent actions of someone within the organization, as opposed to an external and malicious cyberattack.  This week, the Fourth Circuit held that that the inadvertent disclosure of data from within the company can constitute a “publication” triggering an insurer’s duty to defend. Goldberg Segalla attorneys Colin B. Willmott and Jonathan L. Schwartz provide a complete analysis of the decision in Travelers Indemnity Company of America v. Portal Healthcare Solutions,

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Lessons From a Presidential Campaign Data Breach

It was perhaps the first major allegation of a cyber breach in a presidential campaign when the Democratic National Committee (DNC) claimed that staff members from the campaign of Bernie Sanders accessed unauthorized information from a voter database maintained by DNC. The DNC leases this database to various campaigns and the campaigns supplement it with their own information. However, campaigns are blocked via firewalls from viewing information supplied by rival campaigns. In this case, members of the Sanders campaign are alleged to have accessed information…

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On the Rise: Cyber Breach Actions Take Center Stage

Yet another class action lawsuit has been filed following a cyber attack, this time against Excellus Health Plan Inc. and Lifetime Healthcare Inc. in federal court for the Western District of New York. The lawsuit was brought by self-proclaimed “New York City’s largest personal injury and mass-tort plaintiffs’ law firm” and the former employer of New York’s disgraced Assembly Speaker Sheldon Silver, who reportedly collected about $4 million in bribes and kickbacks during his employment, Weitz & Luxenberg P.C., as co-counsel with Faraci Lange LLP.…

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Not If, But When: Another Health Insurer Hacked

This post first appeared on Goldberg Segalla’s Insurance & Reinsurance Report blog. In mid-September, it was reported that hackers hit another set of health insurance companies. In this case, the hackers hit The Lifetime Healthcare Companies and its affiliates including Excellus BlueCross BlueShield, Univera Healthcare, and The MedAmerica Companies. A full list of plans affected can be found on the press release outlining the details of the attack. Hackers took information on approximately 10 millions customers including seven million from Excellus and three million from…

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(C) Luka Azman

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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computer crime

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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