What is “reasonable cybersecurity” and how do courts view it? (SecureWorld interviews)

What is “reasonable cybersecurity” and how do courts view “reasonable cybersecurity”?

See KnowB4’s discussion of these interviews

These are two excellent questions that I was asked and I answered, as succinctly as I could, in two short interviews with SecureWorld. Tell me what you think about my answers.

What Is Reasonable Cybersecurity? – SecureWorld article

How Courts & Attorneys View ‘Reasonable Cybersecurity’ in 2018 – SecureWorld article

Here are the videos.

 

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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.

Uber’s CISO Makes Case for Uniform National Data Breach Notification Law

UberUber’s Chief Information Security Officer (CISO), John Flynn, made a case for a uniform national data breach notification law in his testimony to members of Congress (see penultimate paragraph of full written testimony):

I would like to conclude by stating that we strongly support a unified, national approach to data security and breach standards. We are proactively engaged in the many conversations in both the technical and policy communities to help identify what the critical components of federal data breach legislation should be, and are pleased to see this robust conversation taking place with various Members of Congress and your staff. We welcome the opportunity to be at the table to help all stakeholders understand the best practices.

I agree!

NTSC LogoIf you are a CISO of a company and are interested in participating in this discussion, please considering joining the National Technology Security Coalition (NTSC) in this effort to get an appropriate uniform federal data breach notification law passed. (Disclaimer, I am a member of the NTSC’s Policy Counsel and will be assisting in drafting proposed legislation.)

See these related posts:

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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.

State data breach notification law mishmash would get worse with proposed NC and SD legislation — is instant notification by clairvoyant next?

electrical-cable-mess-2654084_1920The push for a single uniform national data breach notification law gained strength in the wake of the Equifax breach. Now proposed legislation in North Carolina would amend its law in a way that would add momentum to this push. And, now South Dakota is tired of being one of only two states without a breach notification law and wants to abandon Alabama and join the other 48 states by getting a law of its own.

See Why Do Data Breach Disclosures Take So Long? Let’s Ask the SEC Chairman

North Carolina, in a never-ending race to see which state can come up with the most impractical breach notification law, has proposed legislation that would (1) now requiring that companies notify consumers and the state Attorney General of data breaches within 15 days; and (2) adopt the HHS’ view under HIPAA that a ransomware attack is a data breach that requires notification and reporting. You can read more details about the new law here, but this is enough to help you see why even this Texan believes we need a federal breach notification law in place before some state requires instantaneous notification of consumers by a clairvoyant.

South Dakota’s proposed legislation is at least generally consistent with the existing laws of many of the other 48 states. It would require companies to notify its residents whose personal or protected information was, or is reasonably believed to have been, acquired by an unauthorized person, within 45 days from the discovery or notification of the breach. Breaches affecting more than 250 of its residents would require notifying the state’s Attorney General as well. You can read more details about the proposed law here.

Under the proposed laws for both the North Carolina and South Dakota, the failure to comply with the breach notification requirements would be a violation of the respective states’ deceptive trade practices laws.

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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.

 

Happy Data Privacy Day!

WHAT ARE YOU DOING TO OBSERVE IT?

Data Privacy DayToday is Data Privacy Day! If 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 DATA PROTECTION. DATA PRIVACY DAY IS NOW A CELEBRATION FOR EVERYONE, OBSERVED ANNUALLY ON JANUARY 28.

DATA FLOWS FREELY IN TODAY’S ONLINE WORLD. EVERYONE – FROM HOME COMPUTER USERS TO MULTINATIONAL CORPORATIONS – NEEDS TO BE AWARE OF THE PERSONAL DATA OTHERS HAVE ENTRUSTED TO THEM AND REMAIN VIGILANT AND PROACTIVE ABOUT PROTECTING IT. BEING A GOOD ONLINE CITIZEN MEANS PRACTICING CONSCIENTIOUS DATA STEWARDSHIP. DATA PRIVACY DAY IS AN EFFORT TO EMPOWER AND EDUCATE PEOPLE TO PROTECT THEIR PRIVACY, CONTROL THEIR DIGITAL FOOTPRINT, AND MAKE THE PROTECTION OF PRIVACY AND DATA A GREAT PRIORITY IN THEIR LIVES.

14 Tips For Keeping Your Company’s Data Secure

In honor of Data Privacy Day, the International Association of Privacy Professionals (iapp) has posted an article with 14 tips you need to consider when evaluating how to keep your company’s data secure:

  1. Know Thy Data. Determine what data you collect and share. Classify it according to its level of criticality and sensitivity. What could be considered PII? Define whether data is “in use,” “in motion” or “at rest.” Know where the data is physically stored.
  2. Terms and Conditions May Apply. Make sure your privacy policy reflects current data practices (see Tip #1). This includes the use of third-party advertisers, analytics, and service providers. Periodically review and confirm these third parties comply with your written policies.
  3. You Don’t Know What You’ve Got Till It’s Gone. Conduct annual audits to review whether your data should be retained, aggregated or discarded. Data that’s no longer used needs to be securely decommissioned. Create a data retention policy dictating how long you keep information once it’s fulfilled its original purpose. And, of course, continually ask whether that purpose is still valid and relevant.
  4. Practice or You’ll Breach. Forged e-mail, malvertising, phishing, social engineering exploits and data snooping via unencrypted transmissions are on the rise. From simple controls to sophisticated gears, make sure you’ve implemented leading security “best practices.”
  5. AYO Technology! Data Loss Prevention (DLP) technologies identify vulnerabilities of potential exposures. These work in conjunction with existing security and antivirus tools. From early warnings of irregular data flows to unauthorized employee access, DLP solutions help minimize and remediate threats.
  6. BYOD Is Like a BYOB House Party. The lack of a coherent bring-your-own-device (BYOD) program can put an organization at risk. User devices can easily pass malware and viruses onto company platforms. Develop a formal mobile device management program that includes an inventory of all personal devices used in the workplace, an installation of remote wiping tools and procedures for employee loss notification.
  7. Insist on a List. To mitigate the grave impact on your organization, inventory key systems, access credentials and contacts. This includes bank accounts, registrars, cloud service providers, server hosting providers and payroll providers. Keep this list in a secure yet accessible location.
  8. Forensics – Don’t Do This at Home. The forensics investigation is essential in determining the source and magnitude of a breach. This is best left to the experts as it’s easy to accidentally modify or disrupt the chain of custody.
  9. Where the Logs At? Logs are fundamental components in forensics analysis, helping investigators understand what data was compromised. Types of logs include transaction, server access, firewall and client operating system. Examine all logs in advance to ensure correct configuration and time-zone synchronization. Routinely back them up; keep copies, and make sure they’re protected.
  10. Incident Response Team to the Rescue! Breaches are interdisciplinary events requiring coordinated strategies and responses. The team should represent every functional group within the organization, with an appointed executive who has defined responsibilities and authority. Establish “first responders” available 24/7 (hackers don’t work a 9 to 5 schedule).
  11. Get Friendly With the “Fuzz.” Reach out to law enforcement and regulators prior to an incident. Know who to contact so you won’t have to introduce yourself in the “heat of the battle.” When you have bad news to report, make sure they hear directly from you (a courtesy call goes a long way). Don’t inflame the situation by becoming defensive; focus on what you’re doing to help affected parties.
  12. Rules, Rules, Rules. Become intimately familiar with the international, domestic and local regulations that specifically relate to your organization. The failure to notify the appropriate governmental body can result in further inquiries and fines.
  13. What Did You Say? A well-executed communications plan not only minimizes harm and potential legal consequences, it also mitigates harm to a company’s reputation. Address critical audiences and review applicable laws before notifying. Tailor your message by geographic region and demographics. Knowing what to say is just as important as knowing what NOT to say.
  14. Help Me Help You. Customers want organizations to take responsibility and protect them from the potential consequences of a breach. The DIP should include easy-to-access remedies that offset the harm to affected parties.

Here is a link to the full post: How to Lose Your Data in 10 Days

The 14 tips are a great place to start when thinking about securing your company’s data. As shown by the recent data breaches that have hit Target, Neiman Marcus, Michaels, and Barnes & Noble, the question is no longer one of if your company will have a data breach, but when.

When Your Company is Breached, Your Preparation Will Be Vital to the Company Surviving the Crisis

A data breach is a crisis situation for any company–especially given the amount of attention data breaches are getting these days. From a very big picture perspective, there are two goals to strive for when a company responds to a data breach: (1) avoid, or at least mitigate, any legal and regulatory trouble; and, (2) more importantly, minimize the impact of the breach on the company’s overall business. (see related data breach discussions) The only way your company can achieve these goals is to be proactive by getting prepared before the inevitable occurs–the breach.

If your company is prepared, it is in a much better position to minimize the loss of data, be better able to respond to the breach, and demonstrate to the legal and regulatory authorities that it acted reasonably in protecting its data, which can be very helpful in minimizing the legal and regulatory repercussions, which is the first step. By being prepared and better able to address the first step, the company is then able to focus more of its efforts on polishing its response to be more palatable for its customers and better addressing their feelings and concerns. In other words, if the company is prepared, it is not panicking and scrambling just to get out a response–any response–but instead can take the time to analyze the situation through its customers’ eyes and provide a much better response that takes their feelings and concerns into consideration. This is the vital step because this is what helps preserve the company’s customer relationships.

The best way to be prepared for this is for your company to have a thorough and custom data breach incident response plan. The data breach incident response plan should be tailored to fit your company in many ways, including the following ways just to name a few:

  • the nature of your company’s culture, both internally and externally
  • the nature of your company’s customers
  • the nature of your company’s products or services
  • the nature of your company’s operations and management structure
  • the type, volume, and sensitivity of the data your company collects and retains
  • the security measures your company has in place
  • the resources your company has to devote to data security issues
  • the security standards of your company’s particular industry

Could you figure these things out on your own, with enough time and effort? Probably so — but would that really be efficient? More importantly, and I can not over-emphasize this point enough: You need an attorney to assist you with many of these things because, when done under the guidance of an attorney and if the proper formalities are observed, much of the process can be protected by the attorney-client privilege, but not if you don’t have an attorney assisting with the process.

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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 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.

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:

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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.