Supreme Court Recognizes Expectation of Privacy Regarding Cellphone Location Data

On Friday, June 22, 2018, in a 5-4 split, the Supreme Court in Carpenter v. United Statesheld that the government usually needs a warrant to access an individual’s historical cellphone location data held by third-party carriers. The court rejected the government’s argument that an individual does not have a legitimate expectation of privacy under the Fourth Amendment concerning the location data that third-party carriers collect and keep.  This data, essentially logs of the location of cellphone towers used to route calls to and…
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An Insurer’s Guide to Navigating the Legal Landmines of Cybersecurity Regulation

Cybersecurity is front and center now, especially for the financial services industry which includes insurance and reinsurance companies, among others.  States and regulators are passing laws and promulgating regulations designed to protect customer data in the possession of insurers and their associates. These new statutes and regulations aimed at the insurance industry are in addition to the myriad of other requirements imposed by government for the protection of this data. Aaron J. Aisen, co-chair of the regulatory sub-practice group in the Global Insurance Services
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Shared InfoSec Language Fosters Shared InfoSec Goals

While most business leaders agree that cybersecurity has significant value, determining exactly where and how to spend company dollars on training and infrastructure continues to be a point of disagreement within organizations. Intelligent communication using a shared vocabulary, according to a recent Focal Point Data Risk report by the Cyentia Institute, is vital to achieving consensus, and a comprehensive security plan. As the barriers between the c-suite and IS department continue to diminish, thanks, in part, to widespread adoption of a chief information security officer…
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Amazon’s Facial Recognition Software Sparks Privacy Concerns

The recent television series Person of Interest, which aired between 2011 and 2016, was premised upon an artificial intelligence (AI) program that could recognize patterns to determine individuals who may become victims of violent crimes. Facial recognition was one of the machine’s abilities, allowing the show’s protagonists to locate and track individuals in and throughout New York City.  The AI in Person of Interest is no longer the stuff of television or of the future. Lawmakers and civil rights groups have expressed their concern…
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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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The Glacial Movement of Global Cybersecurity

In the pastoral setting of Le Manoir Richelieu in Charlevoix, Quebec, G7 Summit partners met to discuss a broad spectrum of topics, including the shared values of freedom, democracy, the rule of law, a mutual respect for human rights and common commitment to promote a rules-based international order. Amidst the discussions of freedom, democracy and, yes, tariffs, world leaders issued a “Charlevoix G7 Summit Communique,” which advised: “We will work together to enforce existing international rules and develop new rules where needed, to foster a…
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Eleventh Circuit Vacates FTC Order against LabMD as Lacking Specificity Necessary to Protect Due Process Rights

The Court of Appeals for the Eleventh Circuit has overturned an FTC cease and desist order enjoining LabMD to install a reasonable data-security program, issued in response to the disclosure of a single computer file containing personal information regarding 9,300 customers. Agreeing with arguments from the now-defunct LabMD, the court determined “that the order is unenforceable because it does not direct LabMD to cease committing an unfair act or practice within the meaning of Section 5(a)” of the Federal Trade Commission Act (15 U.S.C. §…
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The FTC Gang’s All Here – Five New Commissioners Confirmed

The Federal Trade Commission (FTC) is widely recognized as the primary federal regulator of cybersecurity and data privacy by virtue of its authority under Section 5 of the Federal Trade Commission Act to take enforcement action against unfair and deceptive trade practices, which authority has been upheld by various courts including the U.S. Court of Appeals for the Third Circuit. For just over a year, the FTC has operated with only two commissioners, one Republican and one Democrat. On April 26, 2018, the United States…
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Papua New Guinea Shuts Down Facebook…Temporarily

The democratic government of Papua New Guinea (PNG) has announced a one-month shutdown of Facebook access within the nation, to allow the government to assess the spread of objectionable content, and to “allow information to be collected to identify users that hide behind fake accounts, users that upload pornographic images, users that post false and misleading information on Facebook to be filtered and removed.” While regimes such as Iran, North Korea, and China currently censor the social networking site, PNG is the first democratic nation…
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Firewall’s Up: South Carolina Passes First-of-its-Kind Insurance Data Security Act

South Carolina recently became the first state to pass legislation modeled closely on the Insurance Data Security Model Law that was approved by the National Association of Insurance Commissioners (NAIC) last October. Amid the rising incidence of cyberattacks, cyber security is a key issue facing the insurance sector. South Carolina has taken a proactive step in protecting their business and customers from possible data breaches. The South Carolina Department of Insurance (SCDOI) Data Security Act, signed by the Governor on May 3, 2018, will become…
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