The U.S. Department of Justice (the “DOJ”) has unsealed an indictment accusing nine Iranian nationals of engaging in a “massive and brazen cyber assault” against at least 176 universities, 47 private companies and 7 government agencies and non-governmental organizations, including the Federal Energy Regulatory Commission (“FERC”). According to the DOJ, the nationals worked for Mabna Institute, an Iranian-based company, as “hackers for hire,” stealing login credentials and other sensitive information to sell within Iran and for the benefit of the Iranian government. Continue Reading DOJ Accuses Iranian Nationals of “Brazen Cyber Assault” on Universities and Government Agencies

On August 11, 2017, the FTC published the fourth blog post in its “Stick with Security” series. As we previously reported, the FTC will publish an entry every Friday for the next few months focusing on each of the 10 principles outlined in its Start with Security Guide for Businesses. This week’s post, entitled Stick with Security: Require secure passwords and authentication, examines five effective security measures companies can take to safeguard their computer networks.

Continue Reading FTC Posts Fourth Blog in Its “Stick with Security” Series

The U.S. Department of Health and Human Services’ Office for Civil Rights (“OCR”) and the Health Care Industry Cybersecurity Task Force (the “Task Force”) have published important materials addressing cybersecurity in the health care industry.

Continue Reading OCR and Health Care Industry Cybersecurity Task Force Publish Cybersecurity Materials

On December 27, 2016, the Securities and Exchange Commission (“SEC”) announced charges against three Chinese traders who allegedly made almost $3 million in illegal profits by fraudulently trading on nonpublic information that had been hacked from two New York-based law firms. This is the first action in which the SEC has brought charges in connection with an incident involving hacking into a law firm’s computer network.

Continue Reading SEC Charges Chinese Traders with Trading on Information Stolen from Law Firms

On July 25, 2016, Lisa Sotto, partner and head of the Global Privacy and Cybersecurity practice at Hunton & Williams LLP, was interviewed on KUCI 88.9 FM radio’s Privacy Piracy show. Lisa discussed the changing regulatory landscape, information security enforcement actions, the threat actors who attack companies’ data and how to manage the aftermath of a data breach. “There is no industry sector that is exempt [from being targeted],” Lisa says. She notes that, because “data can be sold for a monetary sum, data is now the equivalent of cash.”

Listen to the full interview.

On February 23, 2016, the Federal Trade Commission announced that it reached a settlement with Taiwanese-based network hardware manufacturer ASUSTeK Computer, Inc. (“ASUS”), to resolve claims that the company engaged in unfair and deceptive security practices in connection with developing network routers and cloud storage products sold to consumers in the U.S.

Continue Reading FTC Settles with Router Manufacturer over Software Security Flaws

On August 24, 2015, the United States Court of Appeals for the Third Circuit issued its opinion in Federal Trade Commission v. Wyndham Worldwide Corporation (“Wyndham”), affirming a district court holding that the Federal Trade Commission has the authority to regulate companies’ data security practices.

Continue Reading Third Circuit Upholds FTC’s Authority to Regulate Companies’ Data Security Practices

Last week, the Cybersecurity Unit of the U.S. Department of Justice (the “Justice Department”) released a guidance document, entitled Best Practices for Victim Response and Reporting of Cyber Incidents (“Guidance”), discussing best practices for cyber incident response preparedness based on lessons learned by federal prosecutors while handling cyber investigations and prosecutions. The Guidance is intended to assist organizations with preparing to respond to a cyber incident, and emphasizes that that the best time to plan a cyber response strategy is before an incident occurs. The Justice Department drafted the Guidance with smaller, less-experienced organizations in mind, but also believes that larger organizations may benefit from its summary of best practices.

Continue Reading Justice Department Releases Guidance on Best Practices for Cyber Incident Preparedness

On October 8, 2014, the Department of Homeland Security reported that over the course of several months, the network of a large critical manufacturing company was compromised. According to the ICS-CERT Monitor, the compromised company is a conglomerate that acquired multiple organizations in recent years, resulting in multiple corporate networks being merged. The Department of Homeland Security concluded that these mergers introduced latent weaknesses into the company’s network, allowing hackers to go largely undetected for a significant period of time.

Continue Reading Cybersecurity Incident Highlights Questions about Cyber Insurance Coverage