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.…
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The FTC Gang’s All Here, Part III

As we noted in a previous post, the United States Senate has confirmed five new commissioners, bringing a full complement to the Federal Trade Commission (FTC). Four of those commissioners have taken their seats, with the fifth likely to join in the Fall. Here we will provide the biographies of the last two commissioners (based on seniority).  We have already discussed the other three new commissioners. Commissioner Rebecca Kelly Slaughter – Commissioner Slaughter was sworn in in May 2018. She comes to the…
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Compliance Deadline Approaching for NY Cybersecurity Regulation

A key compliance date for the NY Cybersecurity Regulation is quickly approaching. September 4, 2018 will serve as the third key implementation date for individuals and companies (Covered Entities) governed by New York’s Cybersecurity Requirements for Financial Services Companies (23 NYCRR Part 500). Unless the Covered Entity qualifies for one of the exemptions under 23 NYCRR 500.19, by September 4, all Covered Entities must have completed the following*:
  • create and maintain systems that can reconstruct material financial transactions to support and maintain the obligations of

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Litigation Opportunities follow Cryptocurrency Market Vulnerabilities

The Coinrail cryptocurrency exchange based in South Korea fell victim to a “cyber intrusion” causing a 10 percent decrease in bitcoin price, and similar losses across other digital currencies around the globe. Approximately 30 percent of the coins traded on that exchange were “lost” following the attack, valued at approximately $40 million, of which two-thirds were promptly “withdrawn or frozen in partnership with related exchanges and coin companies.” As for the other third, the exchange is reportedly analyzing the server access history, which was…
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GDPR: The Countdown to Compliance

Many companies, large and small, are scrambling with last-minute preparations for compliance with the European Union’s General Data Protection Regulation (GDPR), which goes into effect May 25, 2018. This is because If they don’t comply, they face fines of up to 4 percent of a company’s worldwide revenue for serious infractions or $20 million euros – whichever is higher. A recent IAPP survey of U.S. and European companies carried out by the Pokémon Institute has revealed that only 52 percent of companies expect to achieve
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The SEC Imposed its First Data-Breach Related Disclosure Penalty

On the heels of the Securities and Exchange Commission (SEC) February 20, 2018 guidance on cybersecurity-related disclosures, the SEC imposed its first data breach related enforcement penalty. It should come as no surprise that the SEC’s first penalty was levied against Yahoo arising from its massive 2014 data breach. The $35 million penalty was, as the SEC stated in its April 24 press release, intended “to settle charges that [Yahoo] misled investors by failing to disclose one of the world’s largest data breaches…
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DFS Partially Clarifies Who Qualifies for an Exemption Under Cybersecurity Regulation

By the terms of 23 NYCRR 500.19(e), Covered Entities that have determined they qualify for a limited exemption from compliance under 23 NYCRR 500.19(a)-(d) of New York’s new Cybersecurity Regulation — as of August 28, 2017 — are required to file a Notice of Exemption with the New York Department of Financial Services (NYDFS) on or prior to September 28, 2017. The first compliance date of August 28, 2017 in New York’s cybersecurity regulation, and the date for Covered Entities to determine whether they qualify…
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Congress Rolls Back FCC Privacy Regulations

On March 28, 2017, Congress passed legislation (S.J. Res. 34) that rolled back privacy regulations recently adopted by the Federal Communications Commission. The resolution passed the Senate by a vote of 50-48 and the House by a voted of 215 to 205. This is one of several sets of regulations Congress is rolling back under the authority of the Congressional Review Act of 1996. Under this statute, Congress can nullify administrative regulations by simply passing a joint resolution of disapproval. On December 2, 2016,…
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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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