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Cybersecurity Business Law Blog

The Intersection of Cybersecurity, Business, and Law

Managing Cybersecurity Risks for Boards of Directors

Ethical Boardroom Winter 2016In his latest Ethical Boardroom article, Shawn Tuma explains why it is important for board members to have an active role in their company’s cybersecurity preparation and tells them several key steps they can take to do so. Tuma also explains why cybersecurity is as much a legal issue and business issue as it is an IT issue.

You can read the full text of the article in the Winter 2016 Ethical Boardroom magazine, starting on page 116: Managing Cybersecurity Risks for Boards of Directors

You can also read Tuma’s article in the Spring 2015 issue of Ethical Boardroom titled Cybersecurity Risk: Law and Trends

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Shawn Tuma (@shawnetuma) is a business lawyer with an internationally recognized reputation in cybersecurity, computer fraud and data privacy law. He is a Cybersecurity & Data Protection Partner at Scheef & Stone, LLP, a full-service commercial law firm in Texas that represents businesses of all sizes throughout the United States and, through its Mackrell International network, around the world.

What is Data Privacy Day and How are You Observing It?

Cybersecurity Business Law Blog

Data Privacy DayIf you have been wondering “what is Data Privacy Day?” then this is your lucky day because not only is today Data Privacy Day, but here is the answer and an explanation for why it really matters to you and your company’s future success.

What is Data Privacy Day?

Data Privacy Day is observed every year on January 28 and is led by the National Cyber Security Alliance (NCSA), a nonprofit, public-private partnership dedicated cybersecurity education and awareness. According to the NCSA,

Data Privacy Day is an international effort to empower and educate people to protect their privacy and control their digital footprint.

Data Privacy Day began in the United States and Canada in January 2008 as an extension of the Data Protection Day celebration in Europe. Data Protection Day commemorates the January 28, 1981, signing of Convention 108, the first legally binding international treaty dealing with privacy and…

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How Scheef & Stone’s clients can benefit from Mackrell International

Scheef & Stone, L.L.P. is proud to be a member of Mackrell International. This video offers a short explanation of how Mackrell International works and how it can benefit our clients worldwide.

Cybersecurity Legal Year in Review – #DtSR Podcast

Do not miss this podcast discussing key cybersecurity legal events from 2015. Shawn Tuma joined the DtSR Gang [Rafal Los (@Wh1t3Rabbit), James Jardine (@JardineSoftware), and Michael Santarcangelo (@Catalyst)] on the Down the Security Rabbit Hole podcast.

In this episode…

  • Most important cybersecurity-related legal developments of 2015
    • Tectonic Shift that occurred with “standing” in consumer data breach claims
      • Discussion of law prior to Neiman Marcus case, and post-Neiman Marcus
      • Does this now apply to all consumer data breach cases?
      • Immediate impact? Companies now liable?
      • Lesson is in seeing the trend and how incrementalism works
      • Michaels & SuperValu case dismissals in light of Neiman Marcus
  • Regulatory Trends
    • FTC & SEC gave hints in 2014, post-emergence of Target details
    • Wyndham challenged authority – came to fruition in August 2015
    • SEC not far behind – significant case in September 2015
    • Aggressiveness of FTC is substantial – FTC v. LabMD … all over LimeWire
  • Officer & Director Liability
    • 2014 – SEC Comm. fired the warning shot … pointed the finger
    • Shareholder derivative litigation
    • Individual liability of IT / Compliance / Privacy “officers”
  • Anticipated 2016 Legal Trends
    • Regulatory enforcement … which, by the way, is why NIST is becoming default
    • Shareholder Derivative – much more likely than consumer class actions at this time
    • Lessons from both of these: when you need to persuade the “money folks” that they need to act, mention D&O Liability (especially Caremark) and Regulatory focus on individuals … now they’re in the cross-hairs
    • Realization that cybersecurity is more of a legal issue than anything else (IT or business) b/c it is the legal requirements and consequences that ultimately drive everything

Go HERE to listen to the Podcast!

Court Order Provides CFAA Authorization to Access Computer, Even if Later Overturned

A party who accesses a computer pursuant to a court order authorizing him to seize and access the computer will not be found in violation of the Computer Fraud and Abuse Act if such order is later overturned.

“An essential element of a CFAA claim under 10 U.S.C. § 1030 is that the [defendant] accesses a computer ‘without authorization or exceeds authorized access.’ Hunn v. Dan Wilson Homes, Inc., 789 F.3d 573, 583-84 (5th Cir. 2015) (holding that ‘because [the defendant] did not exceed authorized access, he did not violate the Computer Fraud and Abuse Act’). Here, the state-court turnover orders authorized Shor to access the computers. Even though those orders were ultimately overturned, because Shor had authorization at the time pursuant to a court order to access the computers, Black does not state a claim under the CFAA. See id. (discussing CFAA claim, reasoning that the defendant accessed the computer while still employed at the plaintiff’s company). Land and Bay Gauging, L.L.C. v. Shor, 2015 WL 4978993 (5th Cir. Aug. 21, 2015).

See earlier post.

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