Colin B. Willmott

All articles by Colin B. Willmott

 

San Francisco Legislation Would Ban the City’s Use of Facial Recognition Technology

Over the last few years, there has been a marked increase in legislation regulating the collection and retention of individuals’ biometric information.  For instance, Illinois, Texas, and Washington have enacted legislation regarding the collection of biometric information, and the European Union’s General Data Protection Regulation broadly regulates the collection of biometric data.  In San Francisco, one motivated municipal lawmaker with similar concerns relating to privacy and the disproportionate impact surveillance has had on certain communities proposed a bill that would regulate how the city uses…  

An International Vow to Address Cybersecurity

On Monday, November 12, 2018 , during the Internet Governance Forum at UNESCO’s headquarters in Paris, the French President Emmanuel Macron announced an international agreement referred to as the “Paris Call for Trust and Security in Cyberspace.” The agreement was signed by over 50 countries as well as businesses, including Facebook, Google, and Microsoft, and other organizations. Australia, the United States, Israel, Russia, and China are notably absent. The agreement first highlights the central role cyberspace plays in every aspect of present life and reaffirms…  

GAO Report on Cybersecurity Provides Useful Strategies for Federal Agencies and Private Industry

The Government Accountability Office (GAO) recently published another report in its High-Risk Series detailing the major cybersecurity challenges facing the federal government and outlines key strategic elements to address those challenges. While the report focuses on issues pertaining to federal agencies, several of the observations, and recommendations are also applicable to private businesses. To start, the report details five key elements that are needed to make progress in addressing cyber threats: 1) Leadership Commitment; 2) Capacity; 3) Action Plan; 4) Monitoring; and 5) Demonstrated Progress.…  

Sixth Circuit Uses Every Tool in the Box To Build Case for Coverage for Defrauded Policyholder

July 12, 2018, we reported on the Medidata decision handed down by the Second Circuit in which the court found coverage for a claim resulting from social engineering fraud. We suggested the ruling in Medidata lacks persuasive power due to its unusual factual circumstances and atypical policy language. The Sixth Circuit’s decision in American Tooling Center, Inc. v. Travelers Casualty & Surety Co. of America, No. 17-2014, 2018 WL 3404708 (6th Cir. July 13, 2018), will have more persuasive power, but due to…  

Second Circuit’s Decision Upholding Social Engineering Fraud Coverage Likely a Paper Tiger

In a case closely monitored by the insurance industry, the Second Circuit upheld in a non-precedential summary order a New York federal district court’s summary judgment finding coverage under the computer fraud coverage of a commercial crime policy. Medidata Solutions, Inc. v. Fed. Ins. Co., No. 17-2492, 2018 WL 3339245 (2d Cir. 2018). Although the policyholders are apt to tout the decision as a seismic victory, the atypical policy language and factual circumstances should greatly limit its persuasive value. As background, the insured, Medidata…  

No More Chits to Call In: Computer Crime Policy Does Not Cover Fraudulent Transaction

In Interactive Communications International, Inc. v. Great American Insurance Company, a lawsuit closely monitored by those in the cyberinsurance space, the Eleventh Circuit affirmed a Georgia federal court’s decision, finding an insurance policy’s “Computer Fraud” coverage did not extend to certain losses caused by fraudsters. The decision comports with other recent decisions finding that social engineering fraud schemes do not satisfy the policy’s requirement of losses resulting directly from the use of a computer. Here, the devil was in the details. InComm operated a…  

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. …