Data breaches that result in the unwanted dissemination of personal information are prevalent in the news of late, particularly given the rapid growth of electronically stored information and online commerce. A data breach can be very, very expensive even for the smallest of companies. On average, a relatively small breach that involves less than 10,000 records reportedly costs about $2.4 million in out-of-pocket expenses, $3 million in lost revenue, and no small amount of lost client confidence. Despite this risk, another recent study found that …
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Insider Trading at Law Firms? You Bet.
Law firms house a treasure trove of sensitive documents, confidential information, trade secrets and other materials of immeasurable value. Most professionals are aware of these risks and take steps to safeguard cyber and hard copy materials. Yet, the frightening ease with which materials land in the wrong hands was made public recently when a stock broker and a law firm employee were arrested on charges of fraud in connection with a $33 million insider trading scheme.
According to reports, here is how the scheme …
Continue ReadingCybercrime Strikes Target Corp
Target Corporation, the nation’s number two general retailer (after Wal-Mart), was recently the center of a cybercrime attack that may have compromised as many as 40 million credit and debit card accounts. Target revealed that a third-party had breached its security safeguards during the height of the holiday shopping season and gained access to private customer data, including shoppers’ names, credit card numbers, expiration dates, and three-digit security codes. This highly publicized debacle highlights the risks of cyber exposure.
Target’s large scale data breach is …
Continue ReadingTime to Revisit your Password
It is time to revisit your password because it may be susceptible to an easy hack. The risk of cyber loss is well documented. We’ve routinely warned of these risks previously and, no doubt, will continue to do so because cyber losses are reportedly increasing, and the cost to recover from a data breach can be staggering. All professionals maintain personally identifiable data that would be a goldmine to hackers. Most professionals – hopefully all – at the very least utilize the most fundamental type …
Continue ReadingLove Triangles and Liability: Walgreens hit with $1.4 Million Verdict
Walgreens pharmacy was recently hit with a $1.4 million verdict for divulging sensitive patron information. The suit arises from one of the more peculiar set of facts you’ll encounter but the takeaway is important to all. Pharmacy chains have increasingly become the targets of lawsuits mostly stemming from the improper administration of prescriptions or the failure to give appropriate warnings. But some recent suits involve a dilemma that all professionals face in this digital age: the failure to adequately protect sensitive and confidential data.
Last …
Continue ReadingCyber-liability: An International Problem
Legislation was recently introduced in the Australian parliament that would require companies to publicly disclose data security breaches. The legislation is intended to protect the public by ensuring they are promptly notified if their personal data is compromised. Under the proposed legislation, an administrative agency in Australia would be empowered to levy fines of up to $1.7 million on companies that fail to comply with the disclosure requirements. Clearly, cyber-liability is an international problem.
While the proposed legislation has the purpose of protecting the public …
Continue ReadingArrests Follow Massive, International Cyber-Heist
Recent arrests followed one of the more complex cyber attacks in history. $45 million was reportedly stolen in the blink of an eye but it may take years to comb through the unprecedented cyber-liability issues. Two major banks are now evaluating novel liability issues and presumably deciding whether to lodge a series of lawsuits with major implications on the landscape of cyber-liability.
This week the press reported that the Oman-based bank of Muscat and the United Arab Emirates-based National Bank of Ras Al Khaimah PSC …
Continue ReadingYou’ve Just Been Hacked, Now What?
All professionals utilize computers in the workplace. These devices are a must for providing professional services, meeting customer needs, marketing, billing functions and countless other tools available to professionals through the use of computer equipment. Make no mistake, however, the very equipment that is so crucial to your business is under cyber-attack and is constantly at risk of a virus or hack. Yet, inexplicably, 25% of all computers worldwide are not adequately protected. Professionals cannot afford to be a victim of cyber-liability.
According to Microsoft…
Continue ReadingLinkedIn Escapes Cyber-Liability Exposure
In June 2012, the popular social networking website LinkedIn was hacked resulting in approximately 6.4 million passwords stolen from the website. Within hours of the incident, the passwords were posted on the internet and were used to direct traffic to fraudulent websites. The massive security breach also resulted in a class action lawsuit against “the world’s largest professional network” in the Northern District of California. The plaintiff class alleged that LinkedIn failed to adequately and properly secure the personal information stored on its …
Continue ReadingHollywood Heist Leads to Cyber Liability Suit
The fact pattern sounds like it was ripped from the pages of a Hollywood screenplay. Two criminals back a trailer to a pharmaceutical warehouse and cut a hole in the ceiling of the facility. They proceed to utilize the company’s own forklifts to load over $80 million in prescription drugs into the trailer and exit without detection on any security cameras. All told, authorities estimate that the heist represents the largest known theft of prescription drugs in US history. The last scene in this …
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