New York is home to WallStreet. Naturally the New York Department of Financial Services would include new exmaination requirements that focus on data security. Exmainations will now include:
- Management of 3rd parties
- Cyber Security Insurance requirements
- Monitoring, protection, testing, and detection of cyber security systems [3 page letter from NYDFS] [
Posted inbanking, data privacy, legislative trend
3 Articles on Banks and Credit Unions Suing Retailers After a Data Security Breach
Winter 2013 brought a large data breach for Target. Various lawsuits ensued. Financial institutions sued. Individuals sued.
Target had sought to dismiss the suit brought by 5 financial institutions. The judge said, “NO,” in one of the first rulings of its kind allowing financial institutions to sue retailers for data breaches.
Judge Magnuson also said, “imposing a duty on Target in this case will aid Minnesota’s policy of punishing companies that do not secure consumers’ c…
Health Care Data Security. HHSC Offers 3 Legislative Proposals
HHSC gave the House Committee on Public Health and the Senate Health and Human Services Committee a holiday gift- a report on data security.
The report lays out plans for rulemaking and legislative recommendations, including new requirements for providers:
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Amend the Texas Medical Records Privacy Act (the “Act”), Chapter 181, Health and Safety Code, to include reference to electronic PHI security requirements similar to those inclu…
Data Security Legislation Predictions for Financial Institutions
Legislation predictions from Bankers:
- Banks required to appoint chief information security officers
- Banks to undergo quarterly tests for information system vulnerabilities
- Required review of these third-party contracts and relationships
- Standard set of protocols that banks must follow
- Tort issues like:
- assign legal duties and responsibility
- illuminate investor or shareholder disclosure obligations
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Student Data Privacy- Private Companies Want the Data. States Move to Protect Student Data.
Retailer has breach. 5 Banks sue. Litigation continues to Protect Public Policy. Tort Reform on Horizon.
Winter 2013 brought a large data breach for Target. Various lawsuits ensued. Financial institutions sued. Individuals sued.
Target had sought to dismiss the suit brought by 5 financial institutions. The judge said no.
Judge Magnuson also said, “imposing a duty on Target in this case will aid Minnesota’s policy of punishing companies that do not secure consumers’ credit- and debit-card information.” [ Posted inbanking, data privacy, legal trend, legislative trend, retail data breach
Data Security Getting More Media Attention
President Obama’s pick to lead the Pentagon, Ashton Carter, is a strong proponent of increasing data security. He’s been involved with the reorganization of US Cyber Command.
Expect more legislative & media attention for data security. [Washington Post]
Pawlenty: Businesses Should Be Held to A Higher Standard on Data Protection
Retailers support uniform notification requirements. Pawlenty, head of the Financial services Roundtable, wants them to go a step further.
He wants businesses to meet the high standards that financial institutions have to meet. [The Hill]
39 Lawsuits from HomeDepot Data Breach
Multidistrict litigation found its new bread and butter in data breach lawsuits. The Credit Union National Association determined that the Home Depot data breach cost credit unions $60 million. $60 million hit includes the cost to reissue cards, deal with fraud and cover other costs. [Atlanta Business Journal]
FTC Data Security Enforcement Powers
FTC’s data security enforcement powers are rooted in FTC Act. The Third Circuit Court of Appeals is considering an appeal of a ruling that affirmed the FTC’s data security enforcement powers. The Center for Democracy and Technology supports the FTC’s enforcement powers. [CDT]
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