“Cyber threats cannot be eliminated but they can be managed. Cyber experts say that it is not a question of if you will have a cyber-attack, rather it is a question of when. The next question is what you are going to do about it. In addition to taking action to minimize cybersecurity risk, all
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Retirement Plans Incur Data Breaches; ERISA Council Addresses Cyber Risks
Until relatively recently, retirement plans have not made the news as targets of data breaches. This is somewhat surprising, given the wealth of participants’ personal data stored online by these plans. This past summer, however, two plans experienced cybersecurity incidents, one involving theft and one involving ransomware.
While earlier this month, the ERISA Advisory Council…
State Legislatures Protect Student Data and Mandate Greater Transparency
Public schools have generated and maintained massive amounts of student information for decades. Standardized test scores, grades, conduct records, psychological and medical information, student assessments, child and parent personal information, and teacher evaluations of children’s performance are all essential to providing and improving educational services. But with such massive amounts of data comes great risk…
Industry Insight: Information Governance – Leverage Your Business Intelligence and Reduce Risk
“The goal is to turn data into information, and information into insight.” – Carly Fiorina, former CEO, Hewlett-Packard Co.
The most valuable asset of every organization is information. Organizing, analyzing and optimizing this complex source of business intelligence can be daunting. In addition, assuring the security of sensitive data for legal compliance and reputational purposes…
8th Circuit: Financial Institution Bond Provides Coverage for Fraudulent Wire Transfers
With policyholders facing increased losses from hacking and business email compromise, insurers are fighting hard to escape their obligations under financial institution bonds, crime policies and cyber insurance policies. In a case that bolsters policyholders seeking coverage for digital fraud, the U.S. Court of Appeals for the Eighth Circuit held that a bank’s financial institution…
Arizona Court Rules That Chubb Cyber Policy Does Not Cover Credit Card Theft Losses
As cyber attacks increase at an unprecedented pace, more and more businesses are purchasing cyber insurance to protect against that risk. The insurance industry now faces an avalanche of claims, and those claims now are moving to the litigation phase. In one of the first decisions interpreting a cyber insurance policy, an Arizona federal court…
ERISA and Cybersecurity
Employee benefit plan data stored online may include participants’ names and Social Security numbers, account information and protected health information (PHI), all of which are inviting targets for hackers. Highly-publicized data breaches in recent years have called attention to the obligations of benefit plan administrators (typically the employers sponsoring the plans) under the Health Insurance…
Social Media’s Expanding Distribution of Internet Advertising Impacts Privacy and Security
Last week, social media giant Facebook announced an expansion of its online advertising business to include serving ads to users who are not members of Facebook. Under a press posting titled “Bringing People Better Ads,” Facebook decried ads that are “annoying, distracting or misleading” and talked about its efforts to do better. This move highlights…
Supreme Court: Plaintiff Alleging Statutory Procedural Right Violation Must Show Concrete Injury
On May 16, 2016, the U.S. Supreme Court held in Spokeo, Inc. v. Robins that a bare procedural violation of a statutory requirement, divorced from any concrete harm, does not establish the injury-in-fact necessary to maintain a lawsuit in federal court. The Court acknowledged, however, that an alleged violation of a procedural statutory right could…
The CFPB Files First Consent Order Involving Data Privacy
On March 2, 2016, the Consumer Financial Protection Bureau (CFPB) filed the first consent order (Order) addressing data privacy since the CFPB’s inception in 2010. The Order serves as a warning to all companies that collect, store and use sensitive customer information that misrepresentation of security practices, as well as noncompliant data protection procedures, will…