Largest Data Breach Settlement Against Health Care Provider.

The enforcing regulatory authority: U.S. Department of Health and Human Services

The data breach: 4 million patients personal data, financial information and electronic health information was exposed in 3 different incidents within 1 year. 

The Settlement amount: almost $6 million fine

Society for Human Resource Management | Health Care System to Pay Largest Data Breach Settlement Ever

Fantasy Sports Facing Data Security Questions

What data security issues are being bandied about against Fantasy Sports?

  • Communicating with consumers requesting personal information without the use of encryption
  • Asking customers to send sensitive information, such as Social Security Numbers, and credit card images, via unencrypted email

Is ther an investigation? A complaint filed with the FTC 

Daily Dashboard | Daily fantasy sports sites face data security questions

Hacking Voting Machines. 4 key Pieces of Informed Intel.

Why are voting machines an easy target for hackers? Most voting machines operate on Windows XP, which has not had a security patch from Microsoft since 2014

A hack isn’t the only way to cause voting chaos? Slowing the machines down can be enough to turn people away from the polls

Is this a real, existing problem? Yes, it is. “Virginia decertified thousands of insecure WinVote machines”

The best way to control for electronic voting machine intereference? Auditing the vote. 

Wired | America’s Electronic Voting Machines Are Scarily Easy Targets

3 Issues for Legislators and Regulators. Data Security Class Actions.

  • Cyber Insurance policies are still new and prone to litigation.
  • Companies should vet all public statements through lawyers
  • 2 federal Circuits have loosened up when a suit can continue. Its not as easy to get these cases kicked out of the courtroom.

Texas Lawyer | 3 Things GCs Should Know About Data Privacy Class Actions

Hidden costs of data breaches. Business Costs.

Case Study: Target. Target’s Securities & Exchange Commission filings show:

  • costs thus far of $290 Million
  • estimated future costs will total $370 Million

Case Study: Anthem Insurance. Anthem’s SEC filings show it cannot estimate the cost of its data breach because:

  • ongoing investigation
  • early stage of legal proceedings progress
  • unknown damages
  • uncertain number of lawsuits that will be filed

In additional to actual costs, there are soft costs to a data breach such as:

  • lost contract revenue
  • lost customers
  • brand damage

eweek | Researchers Struggle to Determine True Cost of Data Breaches

INTERIM. 2 Reasons a Regulatory Agency Leader Supports Comprehensive Data Security Laws.

Which regulatory leader wants comprehensive data security laws? The FTC Chairwoman Edith Ramirez

Why the push for data security laws?

  • Hacks aren’t going away
  • Laws need to address how entities gather, save and disseminate personal information

Daily Dashboard | FTC’s Ramirez calls for comprehensive data security laws