Texas AG: Business Must Implement and Maintain Reasonable Cybersecurity Safeguards

Texas AG - Reasonable Cybersecurity

Go here to read: Texas Businesses Must Implement and Maintain Reasonable Cybersecurity Safeguards According to State Attorney General

Texas Bar Journal 2018 Year-End Cybersecurity & Data Privacy Update

The Texas Bar Journal’s year-end update on Cybersecurity & Data Privacy law was once again provided by Shawn Tuma and addressed the following issues:

  • Lawyers’ Cybersecurity and Data Breach Obligations that are required under Texas law and the ABA’s Ethics Opinion 483 titled Lawyers’ Obligations After
    an Electronic Data Breach or Cyberattack
  • Whether an IT service provider’s locking a customer out of its computer violates the Texas “hacking” law
  • Whether a woman viewing pictures on her boyfriend’s iPhone violates the Texas “hacking” law

Protect Your Company Against W-2 Business Email Compromise Attacks During Tax Season

The most likely “cyber attack” that your company will face will come in the form of an email. One of the most common forms of email attack is the business email compromise (BEC) and the most popular time of the year for the W-2 version of BEC is right now — tax season.

Read the full blog post to make sure you and your company are equipped with answers to:

• What is a W-2 BEC Attack?
• How Do Attackers Use the W-2 Information?
• Why Do So Many of These Attacks Happen During Tax Season?
• What Can You Do Now to Protect Your Company?
• What To Do if Your Company is Hit by this Attack?

READ MORE

Scientists warn brain implants can be hacked and used to control people (and you thought I was kidding?)

shutterstock_66449896Back in early 2012, I wrote a blog post about whether hacking a human would violate the federal Computer Fraud and Abuse Act. Shortly after publishing it, I received a call from a guy in Austin who said: “dude, someone finally gets it, I need your help!” … I responded that I was a lawyer, not a psychiatrist and that I was just kidding when I wrote that, kinda.

Now, here we are 6 years later and it seems this is becoming a thing more and more of a thing. What do you think?  Vulnerabilities in brain implants used to treat Parkinson’s disease could be hacked by cyber attackers and used to control people, scientists have claimed.

former employee = current data thief

Fifth Circuit Upholds CFAA Conviction for Former Employee’s Misuse Causing Damage Based on Circumstantial Evidence

In United States v. Anastasio N. Laoutaris, 2018 WL 614943 (5th Cir. Jan. 29, 2018), the United States Fifth Circuit Court of Appeals affirmed a jury verdict finding Laoutaris guilty of two counts of computer intrusion causing damage, in violation of 18 U.S.C. § 1030(a)(5)(A) and (c)(4)(B)(i) of the Computer Fraud and Abuse Act.

Laoutaris had been an IT engineer for Locke Lord LLP; following the termination of his employment, he accessed to the firm’s computer network and issued instructions and commands that caused significant damage to the network, including deleting or disabling hundreds of user accounts, desktop and laptop accounts, and user e-mail accounts. This post-termination access was without authorization. He was ordered to pay restitution in the amount of $1,697,800 and sentenced to 115 months’ imprisonment.

On appeal, Laoutaris argued that “the evidence at trial was insufficient to support the jury’s verdict for both counts of conviction because there was no proof he was the person who accessed Locke’s network and caused the damage that occurred on the relevant dates.” Further, Laoutaris had an expert testify that the attacks came from China.

The Fifth Circuit disagreed and found “[t]he evidence at trial shows a rational jury could have found each essential element for the § 1030(a)(5)(A) offenses charged against Laoutaris, who elected to testify. Contrary to his assertions, there was ample circumstantial evidence identifying him as the perpetrator of these offenses.”

The government’s brief indicates that the following evidence was admitted on this issue, beginning at page 6:

At trial, the government presented a substantial volume of circumstantial evidence identifying Laoutaris as the intruder. Logs created by the servers on the Locke Lord network showed that the intruder on December 1 and December 5 connected to the network using LogMeIn, which was installed on the HOBK01 backup server in Houston, and accessed the network using the credentials of a Windows “master services account” called svc_gn and its associated password. (ROA.1463-1515, 2835-47.) The IP address of the intruder on December 1 and December 5 was 75.125.127.4. (ROA.2768, 2835.)
That IP address was assigned to The Planet. (ROA.1077-79.) Laoutaris was an employee of The Planet at the time. (ROA.1068-70; see also ROA.2635-83.) Kelly Hurst, Laoutaris’s supervisor at The Planet, testified that the IP address was The Planet’s public wireless network at the Houston corporate office, which employees would be able to use while working out of The Planet’s corporate office. (ROA.1077-78.)
*7 Laoutaris was also associated with the LogMeIn software running on the Houston backup server. The software program was installed by a person who identified his email address as “c_hockland@hotmail.com.” (ROA.1304-07, 2848.) Records from Microsoft established that the account was created by “A.N. Laoutaris.” (ROA.2587.) Further, several Locke Lord employees testified that “c_hockland@hotmail.com” was an email address they knew to be associated with Laoutaris. (ROA.1306.) Additionally, Laoutaris’s personnel file included his resume, where he used the email address, and an email he sent on his last day providing c_hockland@hotmail.com as his forwarding email address. (ROA.2550.) Even after he quit, Laoutaris used that email address to send a message to a former colleague at Locke Lord making disparaging comments about the firm and his former supervisor. (ROA.2559-60.) Laoutaris continued using the email address as recently as July 2014, after he was indicted. (ROA.2681.)
The government also presented evidence establishing that Laoutaris had the password for the “svc_gn” account. The “svc_gn” account was the “master of all masters” account that had “no limits” on what it could do within the Locke Lord network. (ROA.1147.) IT engineers at Locke Lord explained that all of the engineers would from time to time use the “svc_gn” account when performing various tasks on the network and that all the *8 engineers had the password. (ROA.1147.) The jury heard evidence that Laoutaris asked for, and received, the password for the “svc_gn” account shortly before quitting the law firm. On August 10, 2011, a few days before Laoutaris quit, he requested the password from Michael Ger and Stan Guzic, two of the other IT engineers at Locke Lord. (ROA.2556-57.) Guzic testified that Laoutaris “constantly asked us for the password” and thus “to help him remember it, we used his name within the password itself” – specifically, “4nick8.” (ROA.1151.)
Not only was Laoutaris specifically tied to the December 1 and December 5 attacks, the government presented evidence tying him to at least 12 unauthorized intrusions into the Locke Lord network through LogMeIn. (ROA.2703-16, 2746, 2756, 2758, 2760, 2762, 2764, 2766, 2768, 2835, 2849.) Each of those intrusions originated from an IP address that was tied back to Laoutaris – either his home or his place of employment. (ROA.2703-16.)
The government’s brief also provides an excellent example of how to calculate a loss in a case such as this, beginning at page 12.

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Shawn Tuma (@shawnetuma) is an attorney with an internationally recognized reputation in cybersecurity, computer fraud, and data privacy law. He is a Cybersecurity & Data Privacy Attorney 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.