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Kari M. Rollins is a partner in the Intellectual Property Practice Group and Office Managing Partner of the New York office.

The New York State Department of Financial Services recently announced new guidance addressing ransomware attacks, and highlighting cybersecurity measures to significantly reduce the risk of an attack.  The guidance comes as ransomware rates have been increasing, and builds on the post SolarWinds guidance from NYDFS about supply chain management. It was released just prior to the most recent large attack, namely the July 2nd supply-chain ransomware attack centered on the U.S. information technology firm Kaseya.

Continue Reading NYDFS Issues Ransomware Guidance

New York City recently enacted a biometric ordinance that is set to come into effect July 9, 2021. With this ordinance, NYC joins other cities (like Portland) in regulating the use of biometric information. The ordinance may impact retailers, restaurants, and entertainment venues in the city that use security cameras with facial-recognition technology or otherwise collect biometric identifiers from their customers.
Continue Reading New York City Biometric Ordinance Effective July 9, Are You Ready?

The Supreme Court’s recent decision in Van Buren addressed the meaning of the term “exceeds authorized access” under the Computer Fraud and Abuse Act (CFAA). The Court held, in a criminal case that alleged that the person used information for an improper purpose, that the law’s definition of this term does not include situations when people have improper motives for obtaining computerized information they are otherwise authorized to access.
Continue Reading The Impact of the Narrowed Scope of CFAA Liability in the Privacy and Security Realm

NYDFS Issues Supply Chain Management Guidance

The New York State Department of Financial Services recently issued recommendations to financial institutions in the aftermath of the SolarWinds cyberattack. In that attack, hackers inserted malware into SolarWinds software which was then distributed to SolarWinds’ customers (many of which were financial institutions). After discovery, SolarWinds released a series of hot fixes to address vulnerabilities in their software associated with the attack. Although NYDFS found that most companies responded quickly to patch the vulnerabilities, it did identify additional steps to reduce supply chain risk:
Continue Reading NYDFS Issues Supply Chain Management Guidance

The Dutch Data Protection Authority recently imposed a €475,000 fine ($558,000) against the hotel website Booking.com for waiting longer than 72 hours to report a data breach. According to the Dutch DPA press release, Booking.com learned of the breach on January 13, 2019 and reported it to the DPA on February 7, 2019. The DPA did not make it clear in that release whether Booking.com had, in fact, determined on January 13, 2019 that a security breach impacting personal information of Dutch citizens had occurred or whether January 13, 2019 was date that Booking.com was first alerted to suspicious activity.

Continue Reading Booking.com Fined By Dutch DPA For Breach Notice Delay

The Illinois Biometric Information Privacy Act (BIPA) has spawned hundreds of class action lawsuits and a raft of unresolved issues.  A core issue from a litigation perspective—as well as for companies bracing for potential lawsuits—is one of “standing,” and in particular, what BIPA claims can be brought by plaintiffs in what venues.

Continue Reading Beware BIPA Bifurcation: Plaintiffs’ New Gambit to Split BIPA Claims Between State and Federal Courts 

Cyberattacks have become big business from the standpoint of attackers.  Threat actors range well beyond cults of old, and now including sophisticated state actors, large businesses organized for the very purpose of cyber breach and theft, and complex threat networks that aggregate information formerly treated as innocuous.  This is a real risk for companies as we look forward to the remainder of 2021. At the same time, ransomware is changing the state of cyber insurance, with regulators across the globe entering the field to govern the conduct of attacked businesses in this climate. Regulations cover terms of ransom payments and subsequent obligations to persons whose information goes out the pipes.  For more on these risks, you can listen to the recent Nota Bene podcast episode (on Apple PodcastsGoogle PodcastsSpotify, or Stitcher) with Sheppard Mullin partners Kari Rollins and Michael Cohen.
Continue Reading Managing the World of Cybersecurity in a New Era

A class action lawsuit filed against PayPal in connection with a breach it suffered in 2017 was dismissed recently because the plaintiffs did not adequately allege PayPal’s intent to deceive investors.  The litigation began after PayPal’s acquired TIO Networks Corporation, a smaller payment processor and platform.  Post-acquisition, PayPal announced that it had discovered “security vulnerabilities” in TIO’s operations and it thus suspended TIO’s operations.  At that point, TIO had not yet been integrated into PayPal’s platform.  PayPal confirmed that it was investigating TIO’s security measures with the help of outside assistance, and that PayPal customers’ data remained secure.  PayPal further confirmed that it was not aware of any breach of personal information maintained by TIO.  The following month, however, PayPal announced that a breach of personal information had in fact occurred.  Confidential information belonging to 1.6 million customers had been potentially compromised, causing PayPal’s stock price to drop by 5.75%.
Continue Reading Successful Dismissal of PayPal Class Action Over Breach Disclosures Serves as Risks Reminder

Late this summer the New York Department of Financial Services (NYDFS) announced its first enforcement action since the cybersecurity rules went into effect in March 2017. The action was brought against First American Title Insurance Co. as a result of a 2018 data breach exposing 850 million customer records containing sensitive personal information.
Continue Reading What the First Enforcement Action under NYDFS Cybersecurity Reg Means to Companies