On October 16, 2018 the Securities and Exchange Commission (“SEC”) issued an investigative report following investigations of nine public issuers who were victims of cyber fraud.
You don’t have to be a user of its ride-sharing services to know that in 2016, Uber was the victim of a massive data breach involving the theft of personal information belonging to about 57 million of its riders and drivers, including names, phone numbers, and driver’s license information.
This fall, I have the pleasure of teaching a course on Information Security Policy and Law at the Rochester Institute of Technology Golisano College of Computing and Information Sciences. When I was asked to teach, I welcomed the opportunity, because the course is directed at graduate level cybersecurity students, who don’t often get exposure to the legal and regulatory side of the cybersecurity equation.
In an interesting IAPP article, Kelce Wilson, InfraGard General Counsel, describes how bad actors without any hacking expertise can potentially inject themselves into the middle of a data breach notification effort and engage in widespread identity theft. The other unanticipated consequence of data breach notification is this: with the trend toward public disclosure of data breach notification letters and statistics, more and more information is in the public domain about the types of data our organizations collect and whether or not we encrypt that data. Case in point, Massachusetts, where yearly Data Breach Notification Reports are available on-line. The 2018 Report shows data breaches reported to Massachusetts authorities this year.
In a classic story of “it’s never over until it’s over,” cybersecurity David LabMD challenged the FTC’s Goliathan ability to issue sweeping orders in relation to security concerns under Section 5(a) of the Federal Trade Commission Act. LabMD had lost its challenge of the FTC’s underlying authority to issue such orders, but continued in its fight, ultimately challenging the wording of the FTC’s form order itself. And LabMD ultimately won in a landmark decision that can be found here.