Study Finds Nearly Eighty Percent of Respondents Lack Formal Incident Response Plan on Cyberattacks

IBM Security has announced the staggering findings of the third-annual benchmark study on Cyber Resilience — an organization’s ability to maintain its core purpose and integrity in the face of cyberattacks. Conducted by the Ponemon Institute and sponsored by IBM Resilient, more than 2,800 security and IT professionals were surveyed around the world in preparation of “The 2018 Cyber Resilient Organization.” The study found that many organizations continue to be ill-prepared for a cyberattack. Some of the more staggering findings are as follows:
  • 77 percent

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New York’s New Cyber Law Is Beginning to Byte

In late 2016, in response to the “ever-growing threat” posed to information and financial systems, the New York State Department of Financial Services (DFS) proposed cybersecurity regulations to “promote the protection of customer information and information technology systems of regulated entities.” The DFS defined “covered entities” as any person operating under or required to operate under a license, registration, charter, certificate, permit, accreditation or similar authorization under the Banking Law, the Insurance Law, or the Financial Services Law of New York.  Banks, insurance companies, and…
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Re-Thinking the U.S. Government’s Approach to Cybersecurity

Are the “cybersecurity” tools used by the CIA and NSA causing harm to U.S. businesses and citizens? An analysis of the WikiLeaks materials, and recent hacker activity, suggests the answer may be yes. This month, it was revealed that at least 40 cyber attacks on organizations in 16 countries were conducted with top-secret hacking tools, according to security researcher Symantic Corporation. While not formally blaming the CIA, Symmantic said it connected these attacks to the CIA hacking tools obtained by WikiLeaks, and that the targets…
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April Brings Showers … and Changes to State Data Breach Notification Laws

Over the past few weeks there have been noteworthy changes to data breach notification acts within several states. Of importance, New Mexico enacted its first notification law while Tennessee and Virginia amended existing legislation. New Mexico On April 6, 2017 New Mexico enacted HB 15, the Data Breach Notification Act, making it the 48th state to pass a notification law. The Act goes into effect on June 16, 2017, leaving Alabama and South Dakota as the only states without notification requirements. The Act, drawing…
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New York Issues Final Cybersecurity Regulation

On February 13, 2017, the New York Department of Financial Services (NYDFS) adopted the final version of its first-of-its-kind cybersecurity regulation, “Cybersecurity Requirements For Financial Services Companies” (23 NYCRR 500). This regulation took effect on March 1, 2017. The final regulation reflects several of the comments offered during the final comment period that concluded on January 27, 2017. For a prior list of significant changes from the initial version to the second version, please see our blog post located here. Most of…
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NYDFS Issues Updated Cybersecurity Regulation

The New York Department of Financial Services (NYDFS) recently issued an updated version of its proposed cybersecurity regulation, “Cybersecurity Requirements For Financial Services Companies” (23 NYCRR 500). The updated proposed regulation reflects several of the comments offered during the initial public notice and comment period that concluded on November 14, 2016. Some of the most noteworthy changes in the revision are as follows:
  • Section 500.04 — NYDFS clarified that while a Covered Entity must designate a qualified individual to perform the responsibilities

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Despite Recent High-Profile Dismissals, Wendy’s Shareholders Try Again with Cybersecurity-Related Derivative Lawsuit

The resilient plaintiff’s bar is not backing down from their quest to hold directors and officers personally liable for corporate misconduct that leads to cybersecurity breaches. Taking guidance from the failures which resulted in a string of dismissals of high-profile cybersecurity-related shareholder derivative lawsuits, a shareholder of the fast food-chain The Wendy’s Company is taking another shot to impose liability on corporate leadership for failing to take precautions against cyber-attacks. To be clear, these derivative cases are trying to hold the directors and officers liable…
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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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Judge Rules No Standing to Pursue Fear Of “Hacker Harm”

Last week a judge in the Southern District of Illinois trimmed several claims from a class action complaint made against Chrysler and Harman International Industries stemming from a 2015 WIRED magazine article. The July 21, 2015 WIRED article described the author’s experience of being a “digital crash-test dummy, a willing subject on whom [two hackers] could test the car-hacking research they’d been doing over the past year.” Less than two weeks after the article was published, on August 4, 2015, the plaintiffs filed their class…
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RAND Study Estimates Lower Cyber-Incident Costs

According to a new study by the RAND Corporation, published in the Oxford Journal of Cybersecurity, the average cost of a typical cyber breach for an American company has been estimated at $200,000, significantly less than the $1,000,000 figure suggested by other organizations, such as the Ponemon Institute. The study analyzed a private data set of 12,000 cyber incidents over a decade based on corporate losses compiled for the insurance industry. “Relative to all the other risks companies face, the cyber risks often aren’t…
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