Category Archives: business trend

3 New Cyber Security Threats for Financial Types & Everyone

Morgan Stanley’s chief information officer of technology and risk information told the Securities Industry and Financial Markets Association’s annual conference that there are 3 new cyber security threats emerging:

  • ransomware- targets an entity, holds your systems hostage until a ransom is paid
  • malicious insiders- someone with valid apparently credentials that seeks to “expose” the entity
  • destructive malware which hits the energy sector more than financial sectors

Think Advisor | 3…

Congress takes Up Data Security in Wifi Cars. Welcome to Texas.

Background: Modern technology in cars was once 8 tracks. Today it’s wifi because no one wants to deal with a 5 year old who has no access to the internet on the highway. 

How do internet connected cars and data security intersect? Hackers have shown how they can take over the controls of vehicles. It’s a Stephen King book come to life. 

What’s Congress doing?  Some say nothing. Others say on November 18, 2015 the House Oversight and Government Reform is having a hearing on the…

Realtors Warn of Data Security Issues in Real Estate. 4 State Law Highlights.

  • Hackers are looking for personally identifiable information such as:
    • credit card or bank account information
    • login credentials
    • employment details
    • physical address, e-mail address, and phone
    • social security number
  • Small Businesses account for the majority of the attacks according to the National Association of Realtors® technology policy expert
  • Real Estate can be impacted in 4 major ways:
    • financial harm from expenses resulting from the breach
    • legal risks from lawsuits…

Data Breach Enforcement: Cable Providers. Regulatory Enforcement. 3 Things to Know Now.

  • In 2014 Cox Communications was hacked. Millions of customer personal data was exposed.
  • Cox paid for notification and credit monitoring services for the millions of impacted customers.
  • Cox also faces regualtory enforcement from the FCC. The FCC is requiring:
    • A comprehensive compliance plan
    • A written information security program
    •  Cox will be monitored by the FCC for 7 years

JD Supra | FCC settles data security enforcement action with Cox

New Issue: Data Security. Insurance. Indemnification. 3rd Party Contractors.

Indemnification Clauses in Insurance Cybersecurity policies should do 3 things:

  • Be clear which entities are covered, none of this any and all other related entities mumbo jumbo
  • Explicitly state details like whether “indemnity for third parties extends beyond the policy’s expiration date”
  • Be flexible to constantly evolving laws and case law

Business Insurance | Precise policy language needed to cover affiliated businesses

76% of IT Decision Makers would Move Data Centers out of the US over Privacy.

Who was surveyed? 1000 IT decision makers across the UK and US

What did 76% say? 76% would “move their organization’s data to another country as a result of privacy concerns”

The privacy concern of businss: government snooping

How do the CEOs feel? 29% have moved data security to the top of the corporate agenda

Where are they moving their data storage? To Switzerland and Canada

The Data Center Journal | Information Exodus: 76% of IT Decision Makers Would Move Their Data to…

3 Recommendations to Minimize Liability in Outsourced Data Security. Hello Vendors.

  • “include specific data security procedure obligations in contracts with vendors

  • verify a vendor’s capacity to adhere to the prescribed data security procedures

  • look at data security practices from an expert’s perspective to determine whether such practices are reasonable”

National Law Review | Piercing Outsourcing Veil: FTC Says Data Security Obligations Remain 

Sign of the Times: Warren Buffet Enters Data Security Insurance Market

This week Berkshire Hathaway Specialty Insurance division unvieled 2 new speciality policies:

  • Professional First Network Security & Privacy
  •  Professional First Professional Liability and Network Security & Privacy

What do the policies cover?

  • coverage for third-party exposures
  • resulting from data security and privacy breaches, breach expense and extortion threats, media liability and business interruption.

SC Magazine | Berkshire Hathaway Specialty Insurance enters cyberinsurance…

Trump Hotel Data Breach

What happened to expose customer data at Trump Hotels? Hotel security systems were “compromised as a result of malware that went unnoticed on system computers for more than a year.”

How long did hackers potentially have access? 1+ year

What responses did Trump Hotels have?

  • Hired independent investgators who found no instances of data being accessed through the malware
  • “Immediately upon learning of a possible incident, we [Trump Hotels] notified the F.B.I. and financial institutions,…

Lege Trend: State Data Security Laws Apply to Insurers. 8 states and counting.

8 states have specifically applied thier data breach notificagtion requirements to insurers. 

  • California
  • Connecticut
  • Maine
  • New Hampshire
  • Ohio
  • Rhode Island
  • Vermont
  • Washington
  • Wisconsin

The laws vary on these points, but all specifically apply to insurers:

  • who has to be notified
  • when notification has be given
  • what information triggers a notification
  • what powers an Attorney General has
  • which entities have to provide the notification

JD Supra | Baker Hostetler | State Data Breach…