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 Reading
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 Reading
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 Reading
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 Reading
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 Reading
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 Reading
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 …Continue Reading
As you’ve no doubt heard, hackers recently accessed dozens of female celebrities’ personal cloud-based storage accounts, releasing hundreds of nude photographs and videos onto the web. Many of the photographs were taken by cell phones, which automatically backed up the files to popular cloud services, such as iCloud and Dropbox. Some suspect that the hackers then employed targeted attacks in which “brute force” programs were used to randomly guess weak passwords for a given username until it found a match. Once inside the celebrities’ cloud …Continue Reading
In November 2013, in the midst of the holiday shopping season, hackers targeted Target Corporation with one of the largest security breaches of its kind. The hackers installed malware on the company’s security and payment systems to steal credit card information. The result impacted over 100 million customers. Given the magnitude of the breach, it may be surprising to learn that Target had prepared for an attack. It invested over $1.5 million in malware detection software in 2013 alone and hired a leading security firm …Continue Reading
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 …Continue Reading