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 …
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The Target Data Breach Litigation Begins
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 ReadingCy-“Burned” – The New Importance of Cyber Insurance
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 ReadingInsider 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…
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