Helpful FTC Guidance on Cybersecurity for Small and Midsize Companies

FTCIt is important for all companies — especially small and midsize companies — to have a basic understanding of what the FTC considers to be reasonable cybersecurity. The FTC is known for being one of the more aggressive regulators that are investigating and enforcing (what it views as) inadequate cybersecurity by companies doing business in the United States. In the watershed case solidifying the FTC’s authority to regulate companies’ cybersecurity under the FTC Act, F.T.C. v. Wyndham Worldwide Corp.,  the U.S. Third Circuit Court of Appeals looked to resources published on the FTC’s website and found that Wyndham’s cybersecurity was very rudimentary and contravened recommendations in the FTC’s 2007 guidebook, Protecting Personal Information: A Guide for Businesses.

The FTC recently published a couple of helpful resources on its website and companies of all sizes would be well-served to spend some time reviewing the recommendations in these resources:

______________________

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.

Allscripts EHR Ransomware Attack is Huge–How Will it Impact Healthcare Practices?

OCR LogoSee recommendations below

On January 19, 2018, cybercriminals were successful in a ransomware attack on Allscripts, an electronic healthcare record (EHR) provider for healthcare providers across the United States. The attack encrypted some of Allscripts systems and prevented those healthcare providers who use those systems for their EHRs from being able to access their patient records. Not only is there the obvious impact this has had on those healthcare providers’ ability to treat their patients, but also, under HIPAA, the Office of Civil Rights presumes that all cyber-related security incidents where protected health information was accessed, acquired, used, or disclosed are reportable breaches unless certain criteria are satisfied. (See checklist in this post and this post for further explanation).

TMLT LogoThe Texas Medical Liability Trust (TMLT)’s blog post, Allscripts EHRS Falls Victim to Ransomware Attacks, goes into much greater detail in describing the facts of this event and what has taken place since the initial attack. The blog also provides an excellent analysis of the Business Associates considerations in a situation such as this and the post features several important recommendations for what practices need to do now from my friend and excellent cybersecurity and data privacy attorney Adrian Senyszyn (LinkedIn) and myself. So, what are you waiting for, go read the TMLT post … and hope and pray that you planned ahead and have cyber insurance!

See Also:

______________________

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.

Complimentary Webinar: Countdown to #GDPR – Compliance for Non-EU Companies

Countdown to GDPR Compliance is a complimentary webinar that I will be moderating on Thursday, December 7, 2017, at 12:00 PM Central.  This is the second webinar in a three-part series sponsored by Mackrell International and will focus on Compliance for Non-EU Companies. You don’t want to miss it!

Moderator: Shawn Tuma
Presenter: Marta Stephanian, Ten Holter/Noordam
Presenter: Henrik Nilsson, Wesslau Söderqvist Advokatbyrå

 

COUNTDOWN TO GDPR COMPLIANCE: Compliance for Non-EU Companies
Sponsored by Mackrell International
Thursday, December 7, 2017 @ 12:00 PM CT
LINK for more information
Register via email: GDPR@hogefenton.com

GDPR Invite 2 11_21

I hope you are able to attend the webinars and find the information helpful in your business. As always, please let me know if you have any questions or if I can help you.

Shawn E. Tuma | Scheef & Stone, L.L.P.
Cybersecurity & Data Privacy Attorney
2600 Network Blvd., Suite 400, Frisco, TX 75034
214.472.2135 (direct) | 214.726.2808 (mobile)
Email: shawn.tuma@solidcounsel.com
Firm: www.solidcounsel.com
Blog: www.businesscyberrisk.com

Invitation for 2 Webinars: Protecting Data Exchanged in Discovery and Securing IoT Data

I thought you may like an invitation to attend two complimentary webinars that I will be doing this coming week:

YOURS, MINE, OURS: Protecting the Data Gathered and Exchanged in Litigation, Association of Certified E-Discovery Specialists (ACEDS)
Monday, August 7, 2017 @ 12:00 CDT
LINK for more information FULL VIDEO (see below)

Securing IoT Data: Compliance, Privacy, and New Regulations, SecureWorld (webinar panel with Andrew Lance of Thales e-Security, Jay Irwin of Teradata, and Craig Spiezle of the Online Trust Alliance)
Wednesday, August 9, 2017 @ 12:00 CDT
LINK for more information

I hope you are able to attend the webinars and find the information helpful in your business. As always, please let me know if you have any questions or if I can help you.

Shawn E. Tuma | Scheef & Stone, L.L.P.
Cybersecurity & Data Privacy Attorney
2600 Network Blvd., Suite 400, Frisco, TX 75034
214.472.2135 (direct) | 214.726.2808 (mobile)
Email: shawn.tuma@solidcounsel.com
Firm: www.solidcounsel.com
Blog: www.businesscyberrisk.com

Webinar: Global reaching Cybersecurity Regulations in New York, will they impact your company?

Now that the WannaCry ransomware has your attention and the attention of everybody else, it is time to start thinking about your company’s cybersecurity legal and compliance obligations.

Do you know whether your company will be impacted by New York’s expansive and global reaching Cybersecurity Regulations? The new Regulations govern many companies that do business in New York as well as other companies they do business with, even if they are not located in or doing business in New York.

The Regulations became effective in March and enforcement begins on August 28, 2017. For companies directly regulated (Covered Entities), the Cybersecurity Regulations provide an outline of essential standards, dictate who should lead the process,andmandate top down buy-in by management and the Board of Directors through these mechanisms:

  • Each Covered Entity must assess its unique risk profile and design a cybersecurity risk management program that addresses its risks in a robust fashion.
  • Each Covered Entity must designate a qualified individual to serve as its Chief Information Security Officer responsible for overseeing and implementing its cybersecurity program that must include things such as cybersecurity-focused policies and procedures and workforce training, penetration testing, third party service provider policies and procedures, development of an incident response plan, and stringent reporting obligations.
  • Each Covered Entity’s senior management must be responsible for its cybersecurity program and file an annual certification confirming compliance with the Cybersecurity Regulations that is attested to by either a Senior Officer or the Chairman of the Board of Directors.

I am inviting you to a COMPLIMENTARY WEBINAR I will be hosting to explain which companies will be impacted and the details about this new law.

Date: Tuesday, May 23, 2017
Time: 10:00 CST
Can’t attend at that time? No problem, register to view it online at your convenience.

REGISTER HERE!

The webinar is being brought to you courtesy of Boldon James, Cyber Future Foundation, and Scheef & Stone. I look forward to your joining us for this webinar and welcome any questions you may have.

______________________

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 Privacy 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.

Computer Use Policies – Are Your Company’s Illegal According to the NLRB?

4c00b10767cf8a5c15a4cde1b4c4f0a4_f120The National Labor Relations Board (NLRB) has continued its assault on businesses and their ability to legitimately protect their computer systems and information against unauthorized non-business use by employees.

A few weeks ago, I wrote 3 Important Points on Computer Policies in which I stressed (1) why your company must have them but (2) that such policy must comply with the NLRB’s Purple Communications case. The NLRB has struck again.

On May 3, 2016, an NLRB Administrative Law Judge struck down as overbroad a Computer Use Policy in Ceasars Entertainment Corporation d/b/a Rio All-Suites Hotel and Casino (NLRB Docket Sheet). The policy, titled Use of Company Systems, Equipment, and Resources, was part of the company handbook and stated that computer resources may not be used to do several things that were listed out and is standard in many similar policies. The NLRB decision (Decision) found that prohibitions against the following was illegal:

  • Share confidential information with the general public, including discussing the company, its financial results or prospects, or the performance or value of company stock by using an internet message board to post any message, in whole or in part, or by engaging in an internet or online chatroom
  • Convey or display anything fraudulent, pornographic, abusive, profane, offensive, libelous or slanderous
  • Send chain letters or other forms of non-business information
  • Solicit for personal gain or advancement of personal views
  • Violate rules or policies of the Company

The NLRB found that prohibiting the conduct mentioned above made the policy overbroad and could effectively limit employees’ use of their employer’s email system to engage in Section 7 communications during nonworking time. Because of that, it found the employer has engaged in an unfair labor practice prohibited by the National Labor Relations Act.

Welcome to Wonderland.

______________________

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.

3 Important Points on Computer Use Policies

IMPORTANT POINT #1: YOUR BUSINESS MUST HAVE A COMPUTER USE POLICY IN PLACE

Computer Use Policies (or Acceptable Use Policies, as they are often referred to) are must haves for today’s businesses. Such policies are a foundational component in how a business creates a culture of security with its workforce by establishing expectations on what are and are not permissible ways to use and safeguard the businesses’ digital assets, as well as third parties’ information that it may be holding. Continue reading “3 Important Points on Computer Use Policies”

The #1 Reason NIST Cybersecurity Framework is Becoming the Standard

NIST-logoAn article in eCommerce Times offers a well-reasoned argument for why the NIST (National Institute of Standards and Technology) Cybersecurity Framework is the guiding force in shaping the United States’ federal cybersecurity strategy: NIST Risk-Assessment Framework Shapes Federal Cybersecurity Strategy You should read it — but only after you read the following explanation because it is a lot simpler.  Continue reading “The #1 Reason NIST Cybersecurity Framework is Becoming the Standard”

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. Continue reading “Managing Cybersecurity Risks for Boards of Directors”

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!