Over half of US states require annual compliance certifications from insurance providers. While the filing time frames for this year draw to a close, companies may want to keep them in mind not only for next year, but as a reminder of the information security programs that are expected to be in place.Continue Reading Insurance Cybersecurity Certifications: An (Updated) State Roundup
The New York Attorney General recently entered into an assurance of discontinuance with Root Insurance Company following a 2021 data incident. According to the AG, the threat actors obtained people’s drivers’ license numbers by exploiting a website error on its car insurance application portal. Namely, upon entering a publicly available name and address, the site would generate a prefilled PDF that included that person’s drivers’ license number, which numbers were pulled from third-party databases. Threat actors used an automated bot to exploit this vulnerability, and gathered drivers’ license numbers of 44,449 New Yorkers (more than half of the total 72,852 people impacted). The threat actors then used many of these people’s information to file fake unemployment claims with New York, which according to the AG, was the goal of the attack.Continue Reading Auto Insurer Settles With New York AG Over Insurance Application Platform Security Issues
On February 20, the SEC announced the creation of its Cyber and Emerging Technologies Unit (CETU) to address misconduct involving new technologies and strengthen protections for retail investors. The CETU replaces the SEC’s former Crypto Assets and Cyber Unit and will be led by SEC enforcement veteran Laura D’Allaird.Continue Reading SEC Creates New Tech-Focused Enforcement Team
January brings us new year’s resolutions, and an opportunity to look back at the prior year. As we have done in years past (2023, 2022, 2021
Continue Reading Sheppard Mullin’s 2024 Eye on Privacy Year in Review
As 2024 came to a close, New York Gov. Hochul signed two bills (A8872A and S2376B) amending New York’s data breach law. The modifications change both what constitutes personal information under the law, as well as modifying notification timing. The notice modification is now in effect; the change to the definition of personal information does not take effect until March 21, 2025.Continue Reading New York Modifies Data Breach Law Heading Into 2025
In the waning months of the current administration, the White House issued a memo setting forth actions focused on national security as directed in the AI Executive Order from last year. As a reminder, the order -while directed to government agencies- also had impacts on how businesses use of artificial intelligence.Continue Reading ‘All Hands on Deck’ – White House Continues to Call on Agencies for AI National Security Plan
The New York Attorney General’s Office recently settled with Albany ENT & Allergy Services over claims that the healthcare provider failed to protect over 200,000 consumers’ private health information. The claims stem from two ransomware attacks in 2023. The AG argued that the company had violated New York’s data security law, resulting in the incident. As part of the settlement, Albany ENT agreed to pay $2.75 million in civil penalties and to implement additional security measures.Continue Reading New York AG Settles EnforcemENT Action with ENT
The New York Department of Financial Services has modified its cybersecurity requirements for regulated entities. These requirements are in addition to those included in the regulations as last updated in November of last year. The new requirements go into effect November 1, 2024. They modify several parts of the rule, including:Continue Reading Amendments to NYDFS’ Cybersecurity Regulations Take Effect November 1
The New York Department of Financial Services (“NYDFS”) recently published guidance on managing cyber risks related to AI for the financial services and insurance industry. Though the circular letter does not introduce any per se “new” obligations, the guidance speaks to the Agency’s expectations for addressing AI within its existing cybersecurity regulations. Continue Reading NYDFS Speaks Out on AI and its Cybersecurity Risks
Verkada, a manufacturer and retailer of security cameras, has settled FTC accusations of lax security measures. The company sells its products to businesses, including schools and medical facilities. It markets its products as “plug and play:” the cameras connect to the cloud and allow customers’ remote access into both live and archived video footage. Among other features, the cameras have a “people analytics” tool that lets users “search images through facial recognition or face-matching technology.” A review of the settlement raises many reminders for companies about (1) security claims in privacy policies and marketing, (2) remediation concerns following a breach, (3) adherence to the Privacy Shield, and (4) a reminder about related (and often overlooked) laws like CAN-SPAM.Continue Reading Camera Company Will Pay $2.95 Million to Settle Security Claims
The SEC recently issued an order and settlement against a company from a pair of cyberattacks in which millions of dollars of client funds were stolen. While the company was able to recover a portion of the funds and ultimately reimbursed clients for the money lost, the SEC still fined the company $850,000 for failure to provide the necessary safeguards to protect its clients’ funds.Continue Reading SEC Continues its Cybersecurity Focus, Settles with Company over Lax Security Measures