Last September, shortly after Equifax disclosed a massive data breach, regulatory agencies moved quickly to adopt regulations intended to better protect consumers from data breaches. Last week, Congress took a first step toward codifying such protections.
On November 30, three Senate Democrats introduced the now third pending bill concerning data breach response and substantive data security requirements, all three of which came in the wake of the Uber and Equifax data breaches, and the stunning revelation that Uber hid the breach for over a year. Indeed, as is now well known, Uber went so far as to pay a hacker or hackers to conceal the breach and delete the compromised data.
Like a rider hailing an overcrowded uberPOOL heading to O’Hare on a busy weekday, the City of Chicago has joined the feeding frenzy surrounding the recently disclosed and controversially handled Uber breach.
At the recent 2017 GreyCastle Cybersecurity Symposium: Generation Cyber, I had the pleasure of presenting the “Top 10 Legal Pitfalls to Avoid in Relation to a Data Breach.”
For years now, business organizations have had a ready and reliable defense to the customer class-action lawsuits that inevitably follow whenever a new data breach is announced: You can’t sue us because any damage from the breach is purely speculative unless the names, addresses, credit card numbers, etc., that were stolen in the attack have actually been misused for fraudulent purchases or identity theft. No harm (yet), no foul.