Hackers Charged with Stealing 1 Billion E-mail Addresses

The U.S. Department of Justice has unsealed indictments against three hackers for having broken into eight email service providers (ESPs), stealing 1 billion email addresses and names, and receiving $2,000,000 for the sale of products to those email addresses through a “spam” sales scheme. According to the indictments filed with the U.S. District Court for the Northern District of Georgia, Canadian David-Manuel Santos Da Silva and Viet Quoc Nguyen and Giang Hoang Vu from Vietnam used an email phishing scheme beginning in 2009 to gain…
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Third Circuit Reviews FTC’s Authority To Enforce An “Unreasonable Failure” To Protect Against A Cyber Attack

Today, the Third Circuit heard oral argument in a case that may have a profound impact on the Federal Trade Commission’s enforcement authority over corporate cybersecurity.  The question presented to the Court of Appeals is whether the FTC can pursue an enforcement action against a company under Section 5 of the FTC Act if the FTC believes that a cyber-hack occurred due to the company’s “unreasonable failure” to protect consumer data. The FTC alleges that Wyndham Worldwide did not “employ reasonable and appropriate measures to…
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Cyber-Attack Class Actions Are On The Rise

After a barrage of media coverage over the release of The Interview, Sony Pictures now finds itself in federal court defending against seven class action lawsuits filed less than a month after the North Korean government hacked its computer system.  Sony became aware of this “unprecedented” attack, in which it reportedly lost over 100 terabytes of data, on the morning of November 24th.  The first class action complaint, Corona v. Sony Pictures Entm’t, Inc., was filed on December 15, 2014 —…
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Can Companies Pre-Emptively Avoid Class Action Suits from Massive Data Breaches? (A Blog Series)

There’s a constant flow of news about massive data breaches nowadays.  So much so that the question for companies with large amounts of personal data storage is no longer “if” it can happen but “when” it will happen.  In this series, we’re going to discuss one method that larger companies are using to significantly reduce the risk exposure to massive data breaches: click-wrap terms of use that require users to waive participation in class actions and instead only pursue claims by way of arbitration or…
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Lawsuits Follow College’s Untimely Notifications – Can’t Blame the Dog…

Last year, the Maricopa County Community College District suffered a data breach in April, but waited until November before advising former students and employees that their academic and/or personal data may have been compromised.  Approximately 2.4 million people were impacted by this breach, or roughly the population of Pittsburgh, Pennsylvania.  Among the data that may have been breached were social security numbers, dates of birth, and bank account numbers. Recently, a current student of Phoenix College sued the College District in Maricopa County Court, making…
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