21 State Cyber Commissions. The Necessary Intel:

  • 21 Governors are presiding over State Cyber Security Commission.
  • The 2 most recent states:
    • Colorado
    • Indiana

Who sits on State Cyber Security Commissions?

  • Top IT leader in state government
  • public safety agency heads
  • executives from cyber companies
  • federal officials

What are the goals of State Cyber Security Commissions?

  • asses the security of state networks
  • develop cyber security legislation

4 Point Checklist for State Cyber Security Commissions:

  • Who should sit on the commission?
  • What’s the commission’s deadline?
  • What is required of the commission? an assessment? legislative recommendations?
  • How should the group be structured?

State Scoop | As more governors convene cyber commissions, questions arise over effectiveness

INTERIM. Banks v. Retailers Round 300. Federal Data Security Bills. 3 Key Pieces of Intel.

  • Financial Services support national data security standards & require nationwide data breach notification requirements for business
  • Retailers oppose federal legislation for the detrimental effect on retailers
  • The detrimental effect on retailers: applying banking rules on non-banks 

The Hill | Financial industry spars with retailers over data breach bill

The Hill | Retailers battle financial sector over data breach legislation

Schools Targeted by Data Collectors. The Intel to Know the Trend:

“Learning to be Watched: Surveillance Culture at School” report published  by the National Center for Education Policy at the University of Colorado at Boulder finds:

  • schools are soft targets for comapnies gathering data
  • free technology to school leads to data collection by the company
  • anonymized student data does not mean  students’ personally identifiable information (PII) is fully or permanently protected

Washington Post | Schools are now ‘soft targets’ for companies to collect data and market to kids — report

INTERIM. TREND. Student Data Security Bills. 2016. 31 States. The Numbers you need to know:

  • In 2016, 31 states introduced student data security bills
  • in 2016, a total of 94 student data security bills were introduced
  • The 4 fastest states to act in 2016 were:
    • New Hampshire: a study to make recommendations
    • Utah: data governance standards
    • Virginia: contracting limitations, data limitations for student & teacher data
    • West Virginia: State Board level data governance standards

District Administration | CIO News | 31 states introduce student data privacy bills

Business TREND. Data Security Helps Business.

4 Key Pieces of Intel from how strong data security laws protect businesses:

  • Global market. EU contracts require strong data protections clauses
  • U.S. weak data security laws create uncertainty in the global market
  • Cost Opportunities. What might cost small companies to comply in the short run, the harm to innovation of not having high data standards cost U.S. businesses more. 
  • U.S. should be a leader in data security standards.

TechCrunch | Startups to Congress: Strong data security keeps us competitive

INTERIM. Another Student Privacy Bill. 7 New Requirements for Education Contractors & Vendors.

Who are the targets of Connecticut’s student data privacy bill?

  • contractors with local boards of education, the State Board of Education and the State Department of Education
  • operators of websites, online services and mobile apps

What will be required of education vendors?

  • outline and maintain security practices
  • prohibited from using personally identifiable student information for :
    • advertising purposes
    • any purpose apart from what their contract stipulates
  • vendors cannot retain student records after the contract services have been fulfilled
  • vendors must have procedures to alert school boards and parents of any suspected breach of data in no more than 48 hours.

Additional requirements specific to online vendors and contractors:

  • no targeted advertising using student information
  • prohbition from using student information for purposes unrelated to school
  • required deletion of student information upon:
    •  request of a student, parent or school board
    • failure to do so results  in a civil penalty 

Connecticut HB 5469

Wilton’s HamletHub | Student Privacy Bill Heads to Governor’s Desk: Parents Get High Praise for Advancing this Groundbreaking Legislation!

TREND: Government Contracts + Data Security = New Federal Contracting Data Security Rule

Which entity promulgated the new federal contracting rule? Federal Acquisition Regulations (“FAR”) Council

Which data security rule for contractors are we talking about? Basic Safeguarding of Contractor Information Systems

Which contracts will be hit by the new rule?

  • all acquisitions by any federal executive agency
  • beginning June 15, 2016
  • If a contractor’s information system may contain “Federal contract information,” 
  • Applies to all subcontractors too

All contractors, and affected subcontractors will be required to meet 15 safeguards:

 

  • Limit information system access to authorized users, processes acting on behalf of authorized users, or devices (including other information systems);
  • Limit information system access to the types of transactions and functions that authorized users are permitted to execute;
  • Verify and control/limit connections to and use of external information systems;
  • Control information posted or processed on publicly accessible information systems;
  • Identify information system users, processes acting on behalf of users, or devices;
  • Authenticate (or verify) the identities of those users, processes, or devices, as a prerequisite to allowing access to organizational information systems;
  • Sanitize or destroy information system media containing Federal Contract Information before disposal or release for reuse;
  • Limit physical access to organizational information systems, equipment, and the respective operating environments to authorized individuals;
  • Escort visitors and monitor visitor activity; maintain audit logs of physical access; and control and manage physical access devices; 
  • Monitor, control, and protect organizational communications (i.e., information transmitted or received by organizational information systems) at the external boundaries and key internal boundaries of the information systems; 
  • Implement subnetworks for publicly accessible system components that are physically or logically separated from internal networks;
  • Identify, report, and correct information and information system flaws in a timely manner; 
  • Provide protection from malicious code at appropriate locations within organizational information systems;
  • Update malicious code protection mechanisms when new releases are available; and
  • Perform periodic scans of the information system and real-time scans of files from external sources as files are downloaded, opened, or executed

Lexology | Wilmer Cutler Pickering Hale and Dorr LLP | Final Government Contractor Basic Data Security Rule Issued

Pensions & Data Security. 6 Issues Identified.

  • Performing due diligence on all data and security protocols when selecting and monitoring vendors;

  • Developing privacy provisions for contracts with TPAs and other service providers over and above standard confidentiality agreements;

  • Limiting access to sensitive information to necessary personnel;

  • Training personnel on the law and the fiduciary responsibilities;

  • Developing written policies and procedures detailing for personnel the applicable state and federal laws;

  • Continuing to monitor and watch over service providers with access to sensitive data.

National Law Review | Jackson Lewis P.C. | Employee Benefit Plans and Data Security Issues

Banking Regulator Announces 2 New Data Security Initiatives

The FDIC announced on May 9th, 2 new data security initiatives:

  • improved software to force encryption of portable devices
  • hiring of a third party to assess FDIC information technology security and privacy programs

Bloomberg BNA | FDIC Takes New Initiative on Data Security Following Breaches

Executive GOV | FDIC Plans New Security Measures After Retroactive Data Breach Report

TREND in data hacking. SEXTORTION.

Will this be a legislative trend? Yes, because sextorition is not a crime. Individuals are charged under usual hacking crimes.

How does sextortion differ from ransomware?

  • Ransomware is about money
  • Sextorition is about power
  • Ransomware holds your computer hostage
  • Sextorition threatens to expose “secrets” unless certain nude images are transmitted

Who are the victims?

  • 71% are under 18
  • 91% are targeted by social media manipulation
  • 7.3 years is the average state criminal sentence
  • 29 years is the average federal criminal sentence

Sextortion | Brookings Institute