Citrix Falls Victim to Password Spraying Attack

On March 6, the FBI alerted Citrix that cyber criminals accessed at least six terabytes of data stored on its servers. The data theft is particularly concerning because Citrix’s products and services are used by the vast majority of Fortune 500 companies, as well as by governments and militaries. The company, however, states that there is no indication that the security of any Citrix product or service was compromised in the attack. The hackers likely used a technique called password spraying to gain access. Password spraying is the… Continue Reading

2018 Year in Review: Major Brands Falling Under Attack

After tallying them all up, 2018’s cyber attacks might not have come across as anything new to most individuals. However, while the number of people affected by data breaches in 2018 did not necessarily hit new records, the volume of attacks and as well as the number of individuals affected still signifies that this is a problem that won’t be going away any time soon. In 2018, billions of individuals were affected by data breaches. Cyber attacks increased by 32 percent over the prior year… Continue Reading

In Pennsylvania, Employers (and Others) may be Liable for Failing to Protect Personal Information that They Collect

On November 21, 2018 Pennsylvania’s highest court ruled that employers in Pennsylvania have an affirmative legal duty to protect workers’ sensitive data from possible hacking.  This ruling has profound implications for employers, which may now be subject to liability for failing to take reasonable precautions to protect their employees from cyber attacks. In a proposed class action, employees of the University of Pittsburgh Medical Center sought damages after a data breach exposed the personal information – including names, dates of birth, addresses, Social Security numbers,… Continue Reading

Lawyers Still Lag in Information Security Risk Management

The frequency and scope of data breaches are growing every day. Hackers have set their sights on law firms because of the treasure trove of valuable data they hold. News of cyberattacks against the legal community has been splashed across the covers of business publications and warned about by professional organizations for a number of years, so this isn’t anything new. What is astonishing, however, is that law firms are still lagging behind with respect to insurance coverage for cyber risks and the implementation of… Continue Reading

Security Breach Compromises 50 Million Facebook Accounts

In the wake of concerns that the social media giant collects too much personal data, Facebook, Inc. discovered a security breach on September 25, 2018 that affected almost 50 million accounts. Recent privacy regulations, including those recently enacted in the European Union, may have forced Facebook into promptly reporting the breach just three days after it was discovered. Based on the breaking-news reports, the FBI is working with Facebook to investigate the breach to determine the extent of the breach, what information was accessed, whether… Continue Reading

Health Care Organizations Seek Regulatory Changes To Improve Access To Cybersecurity Tools

Cybersecurity presents thorny problems specific to healthcare organizations. Not only are their protection of personal health information strictly regulated by the HIPAA and HITECH laws, but such organizations are also more frequently the targets of cyberattacks due in part to the highly personal information collected by such organizations, and in part due to the relative lack of resources available to battle cyber-threats. One set of healthcare regulations not directly related to cybersecurity, the Stark anti-kickback law, has potentially hindered healthcare organizations in adapting to an… Continue Reading

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… Continue Reading

New York Cybersecurity Regulations Extended to Credit Reporting Agencies

This week, Governor Cuomo has directed the Department of Financial Services to issue a final regulation requiring credit reporting agencies to comply with cybersecurity regulations applied to financial service companies, previously adopted in 23 NYCRR 500, et seq. The new regulation, 23 NYCRR 201, et seq., obligates credit agencies reporting on 1,000 or more New York consumers to register annually with the DFS, and, beginning November 1, 2018, to comply the previously adopted standards, including adoption of a cybersecurity program and CISO, and other controls.… Continue Reading

Targeting Public Services: How Municipalities and Gas Pipelines are Vulnerable to Cyberattacks

While the Facebook / Cambridge Analytica scandal has captured the public’s attention, two significant attacks on the City of Atlanta and natural-gas pipeline operators illustrate risk to fundamental human services, including law enforcement and consumer energy. On March, 22 2018, the City of Atlanta reported a ransomware cyberattack on government network servers, including servers hosting data for the Atlanta Police Department, preventing government employees from accessing information necessary to perform their duties. In particular, the police department was effectively handcuffed, and unable to access evidence… Continue Reading

Consumers Have Standing for Data Breach Claims against Barnes & Noble

The Court of Appeals for the Seventh Circuit has issued its second decision in favor of consumers bringing claims against retailers for injuries following cyber attacks exposing sensitive consumer information in Diefenbach v. Barnes & Noble, Inc. On April 11, 2018 the court resurrected the class action brought against the book retailer by consumers whose debit card information was hacked in 2012. Specifically, the court ruled that the named plaintiffs properly alleged an injury under state consumer protection laws, including lost time, cost of… Continue Reading