Remember when you chose your first online login credentials? Perhaps it was for your brand new Hotmail account, or that lightning fast AOL dial-up internet. Like many people, it was probably the first time you ever had to choose a password and it was also probably some combination of your kids’ names, your spouse’s name or your mailing address. Like far too many people, your password in 2016 may not be much different from the one you made in 1996. Despite the best efforts of …
Continue ReadingCategory: Cyber-Liability
Liability for Hacked Emails?
Professionals depend on third-party email services to operate their business. As a result, professionals may assume that the vendor is safeguarding their electronic information and therefore the professional is not exposed. False. Consider an attorney sued recently for malpractice arising from an e-mail hacking scam.
A New York real estate attorney‘s e-mail account was hacked recently. The attorney was hired to represent wealthy clients in the purchase of a multi-million dollar condo. When the hackers gained access to the attorney’s email account, they identified …
Continue ReadingCyber Risks for Contractors
Professional have become increasingly reliant on digital technology to run their practices. This digital revolution has reshaped the way that many professionals operate and has allowed professionals to better service their clients. At the same time, reliance on technology has created new areas of exposure for professionals.
A recent report from Chubb analyzed how this technological revolution has reshaped the construction industry. Under the traditional design-bid-build process, a project would be designed by architects under a separate contract with the owner, and then put out …
Continue ReadingLiability for Failing to Prevent Cyber Risk
Cyber liability threats continue to pose a danger for companies and professionals. In order to help mitigate the damages of cyber breaches, businesses are becoming increasingly reliant on third-party security vendors to provide cyber consulting and to manage their data security risks. While prioritizing data security is an important step for firms to take to minimize their own exposure, it is not always possible to eliminate threats entirely. And when breaches do occur, businesses and their customers may look to hold these third-party data security …
Continue ReadingRecent Survey: You’re Not Cyber Ready
Cyber liability claims are on the rise. Recent breaches against Home Depot, Target and Walmart have grabbed media attention. However, it is not only large retailers who are targets for attack. In fact, the majority of attacks are directed to small businesses. According to a recent study, the average total insurance claim for cyber breaches against small companies is over $600,000 and the average for larger companies is close to $5 million. Are you prepared?
Despite this growing threat, many businesses and professional firms …
Continue ReadingAttorneys: Don’t Hack Your Adversaries’ Files
Professionals look for ways to gain an edge over their competition. Taking extra time to prepare, investigate claims, and anticipate an adversary’s strategy can often mean the difference between success and failure. However, professionals must ensure that their attempts to gain a tactical advantage do not run afoul of ethics rules. When professionals cross the line, they not only jeopardize their clients’ interests, but also put themselves at risk of litigation or disciplinary action. Some lines are clearer than others. For example, one firm recently …
Continue ReadingEmployer Liability for Privacy Breach?
Professionals are often entrusted with confidential information. Ethical rules as well as federal and state laws limit when such information may be accessed by professionals and under what circumstances it may be disseminated. Sure, professionals may be held accountable for errors that result in the unintended disclosure of confidential or sensitive data. However, liability is not limited to the professional directly responsible for the breach; rather, employers may be on the hook too. In fact, the employer may be responsible even if the employee’s conduct …
Continue ReadingNational Cyber-Security: The President Weighs In
Data breaches and cyber-security issues are hot topics. Any company that utilizes electronic means to conduct business, obtain and store information or customer data is subject to the risk of a data breach. The effects of a breach can be devastating. We have recently blogged about practice pointers and tips for companies and boards of directors to be gleaned from high-profile breaches such as the one facing Sony. Against the backdrop, President Obama weighed-in on the significance of cyber crime.
In a January 12, 2015 …
Continue ReadingLessons from Sony: Cyber Attack
Sony Pictures recently became the target of a sophisticated and debilitating digital attack. The first signs of the hack appeared in late November, when an image of a skull flashed on every employee’s computer screen accompanied by a threatening message that the company’s internal data had been compromised. The company initially experienced a shutdown of many of its computers. In the following days, the hackers began to leak private company data. Five Sony films, including four unreleased projects were leaked online, along with compensation …
Continue ReadingCyber Liability in the C-Suite
Everything is electronic. Companies are increasingly reliant on electronic processes to obtain and store valuable customer data, confidential, privileged and proprietary information. With that increased reliance comes the increased risk that this information can be compromised. In light of many recent high-profile data breaches, litigation surrounding data and privacy protection is increasing. A side effect of this litigation is the attention now paid to the role of boards of directors in managing and responding to cyber liability risks. Boards concerned about potential liability of its …
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