Tag archives: data breach

Another One Bites the Dust: Court once again finds data breach forensic report isn’t protected by privilege

Norton Rose Fulbright - Data Protection Report blog

On July 22, 2021, a federal court in Pennsylvania held that an investigative report created by Kroll (the “Kroll Report”), the defendant’s third party cybersecurity consultant, and related communications were not protected by privilege. The court found that the Kroll Report was not protected by the work-product doctrine or attorney-client privilege. The decision comes after the widely publicized Capital One decision, where plaintiffs were also forced to turn over a forensic report.

Work-Product Doctrine

With respect to defendant’s work-product arguments, the court found that the doctrine did not apply. First, in the opinion of the court, the Kroll Report was … Continue Reading

Connecticut enacts cybersecurity breach safe harbor

By David Kessler (US) and Susan Ross (US) on July 16, 2021 Posted in Cybersecurity, Data breach

On July 6, 2021, Connecticut enacted a new law (Public Act 21-119) that creates a safe harbor for companies that followed certain cybersecurity protocols in the event there’s a security breach. … Continue Reading

NYDFS settles cybersecurity regulation matter for $3 million

By David Kessler (US) and Susan Ross (US) on April 22, 2021 Posted in Cybersecurity, Data breach, Regulatory response

Data Protection Report - Norton Rose Fulbright

On April 14, 2021, the New York Department of Financial Services (NYDFS) announced a $3 million settlement with insurance company National Securities Corp. (NSC), relating to violations of three different requirements of the NYDFS cybersecurity regulation during the period 2018 to 2020.… Continue Reading

US banking regulators propose a rule for 36-hour notice of breach

By David Kessler (US) and Susan Ross (US) on January 5, 2021 Posted in Data breach

US banking regulators propose a rule for 36-hour notice of breach

On December 18, 2020, the US Department of the Treasury (Office of the Comptroller of the Currency), Federal Reserve and Federal Deposit Insurance Corporation (FDIC) jointly announced a 53-page proposed rule that would require banks to notify their regulators within 36 hours of a “computer-security incident” that rises to the level of a “notification incident.” The proposed rule would also affect companies that provide certain services to those banks, including data processing. Those service providers would be required to notify “at least two individuals at affected banking organization customers immediately after the bank service provider experiences a computer-security incident that … Continue Reading

New York’s Breach Law Amendments and New Security Requirements

By David Kessler (US) and Susan Ross (US) on October 1, 2019 Posted in Compliance and risk management, Enforcement, General

Although California has recently captured the lion’s share of attention with respect to privacy and security, on October 23, 2019, New York’s amended security breach law goes into effect, and on March 1, 2020, new security safeguards go live (N.Y. S.B. 5575). Anyone with personal information about a New York resident is potentially affected by these far-reaching amendments.

Breach Law Changes

Readers may recall that New York’s security breach notification law (N.Y. Gen. Bus. Law § 899-aa) differs from most states’ law in several ways including (1) using separate definitions of “personal information” and “private information;” and (2) providing factors … Continue Reading

Cyber law firm of the year nomination

By Chris Cwalina (US), Ffion Flockhart (UK) and Steven Hadwin (UK) on July 29, 2019 Posted in General

We are pleased to report that Norton Rose Fulbright has been shortlisted for cyber law firm of the year at the 2019 Insurance Insider Cyber Rankings Awards. Many thanks to everyone who has voted for us so far. The winner will be determined from the results of a wide-ranging survey of insurers and brokers and will be announced on 20 September 2019. We encourage our insurer and broker clients and contacts to respond to the survey if they have not already done so.… Continue Reading

FTC to levy unprecedented $US5bn fine against Facebook

By Andrea D'Ambra (US) and Max Kellogg (US) on July 16, 2019 Posted in Data breach, Regulatory response

On Friday, July 12, 2019, the Wall Street Journal reported that Federal Trade Commission and Facebook reached a settlement to resolve Facebook’s privacy issues surrounding the Cambridge Analytica disclosure discovered last year. The settlement imposes a US$5 billion dollars on the tech giant, which represents roughly 9% of Facebook’s total yearly revenue and is the largest civil and privacy fine ever imposed by the FTC. The fine largely surpasses the FTC’s previous imposed fine in a privacy action, when the FTC fined Google US$22.5 million to settle claims it misrepresented privacy assurances to Safari users.… Continue Reading

New CNIL €400,000 fine for data security breaches and non-compliance with data retention period under the GDPR

By Nadège Martin (FR) and Nilofar Moini Shabestari (FR) on July 8, 2019 Posted in Data breach, Enforcement

Following the now famous €50m fine imposed on Google LLC in January 2019,[1] the French Data Protection Authority (the CNIL) published a decision taken on 28 May 2019[2] imposing a fine of €400,000 on SERGIC, a company specialised in real estate development, purchase, sale, rental and property management.… Continue Reading

New Chinese Measures for Personal Data Cross-Border Transfer Security Assessments

By Barbara Li (CN) and Bohua Yao (CN) on July 1, 2019 Posted in Cybersecurity, Data breach

Introduction

On June 13, 2019 Measures for Personal Data Cross-Border Transfer Security Assessments (Draft for Comment) (Measures) were issued by the Cyberspace Administration of China, along with an invitation for submissions to be made as part of a public consultation. The Measures lay down stricter requirements in relation to cross-border transfers of personal data with the intention to better safeguard internet users’ rights, public interests and national security.

The Measures set out a number of general requirements and implementing provisions for aspects of a network operator’s assessment obligation, assessment standards and reporting procedures. They also introduce specific requirements for contracts … Continue Reading

UK Supreme Court grant Morrisons permission to appeal vicarious liability finding

By Ffion Flockhart (UK), Marcus Evans (UK), Lara White (UK) and Steven Hadwin (UK) on April 17, 2019 Posted in Data breach

The UK Supreme Court has confirmed that permission has been granted to Morrisons for it to appeal against the judgment of the Court of Appeal in Morrison Supermarkets PLC v Various Claimants [2018] EWCA Civ 2338.… Continue Reading

First multi-million Euro GDPR fine: Google LLC fined €50 million under GDPR for transparency and consent infringements in relation to use of personal data for personalized ads

By Marcus Evans (UK), Lara White (UK) and Cécile Auvieux (FR) on January 25, 2019 Posted in Compliance and risk management, Cybersecurity, Enforcement, Regulatory response

On January 21,2019 the French data protection authority (the CNIL) imposed a major fine on the U.S. Google entity, Google LLC. It follows two complaints filed as soon as the GDPR came into force by two consumer rights associations, None of Your Business and La Quadrature du Net.

We focus here on four key aspects of the decision: (a) why the Irish Data Protection Commission (Irish DPC) did not take the case; (b) the consent mechanism failings; (c) the privacy policy failings; and (d) the amount of the fine.… Continue Reading

Transition period under New York Cybersecurity Regulation ends March 1, 2019

By Kathleen Scott (US), Susan Ross (US) and Tristan Coughlin* (US) on January 7, 2019 Posted in Compliance and risk management, Cybersecurity, Enforcement, Fintech, General, Vendor management and transactions

The two-year transitional period under the New York State Department of Financial Services (“DFS”) Cybersecurity Regulation, 23 NYCRR 500 (the “Regulation”), will expire on March 1, 2019, with the final remaining requirement becoming effective. Entities covered by the Regulation that utilize third party service providers, which include not only banks and insurers, but also other financial services institutions and licensees regulated by the DFS, will be required to implement third-party risk management programs by March 1.… Continue Reading

Pennsylvania Supreme Court holds common law duty for employers extends to protecting sensitive employee information

By Andrea D'Ambra (US) and Max Kellogg (US) on December 7, 2018 Posted in Compliance and risk management, Data breach, General, Regulatory response

On November 21, 2018, the Pennsylvania Supreme Court broke new ground by holding that employers have a legal duty to take reasonable care to safeguard its employees’ sensitive personal information from cyberattacks. Dittman v. UPMC, 2018 Pa. LEXIS 6072199 (Pa. Nov. 21, 2018).… Continue Reading

Vicarious liability in the data breach context – bad news for UK employers?

By Steven Hadwin (UK), Mya Joel (UK), Marcus Evans (UK), Catrina Smith (UK) and Amanda Sanders (UK) on October 29, 2018 Posted in Data breach

The Court of Appeal has upheld a decision of the High Court holding that an employer can be vicariously liable for data breaches caused by the actions of an employee, even where the employee’s actions were specifically intended to harm the employer. This decision is significant as it means a company can be held liable to compensate affected data subjects for loss caused by a data breach, even where the company has committed no wrongdoing and regardless of the employee’s motive.… Continue Reading

Lloyd v Google – putting the brakes on English data breach litigation?

By Steven Hadwin (UK), Ffion Flockhart (UK), Jonathan Ball (UK), Marcus Evans (UK), Charlie Weston-Simons (UK) and Rahul Mansigani (UK) on October 8, 2018 Posted in Data breach, Dispute resolution and litigation

A judgment handed down today by the English High Court will be welcomed by UK data controllers. Lloyd v Google [2018] EWHC 2599 represents a corollary to recent case law expanding the circumstances in which litigation may be brought in relation to breaches of data protection legislation.

Most notably, the case:

reinforces the need for “damage” to be proven by claimants before compensation can be obtained in these circumstances; and
makes clear that the courts will not permit representative claims to be brought on behalf of a potentially large population of claimants without close scrutiny of the basis of those

FERC issues notice of proposed rulemaking to extend reporting requirements for cyberattacks targeting the energy sector

By Susan Ross (US) and Alexis Wilpon (US) on August 9, 2018 Posted in Compliance and risk management, Cybercrime, Data breach

On July 23 and 25, 2018, the U.S. Department of Homeland Security (DHS) held public briefings about an attempt by a state-sponsored Russian hacking group to target control systems for U.S. electrical grids and power plants. DHS’ webinar explained that the hackers obtained access to vendors providing computer services to electric utilities companies. This initial access enabled the hackers to gain entry to power company control systems through a complex series of security compromises lasting quite some time. … Continue Reading

Massachusetts Senate passes data protection bill targeting consumer credit agencies

By on May 8, 2018 Posted in Compliance and risk management

On Thursday, April 26, 2018, the Massachusetts Senate unanimously passed a data breach protection bill that strengthens consumer protections after security breaches involving consumer credit reporting agencies. If passed, the proposed legislation would amend Massachusetts’s current breach notification law. The bill aims to help consumers protect their sensitive information before, during, and after a data breach.… Continue Reading

Canada’s Mandatory Privacy Breach Reporting Requirements coming into force November 1, 2018

By Julie Himo (CA) and John Cassell (CA) on April 10, 2018 Posted in Data breach

Starting on November 1, organizations across Canada subject to the Personal Information Protection and Electronic Documents Act (PIPEDA) will be required to provide notice of certain privacy breaches.

The breach reporting requirements relate to a “breach of security safeguards,” which is defined in PIPEDA as: the loss of, unauthorized access to or unauthorized disclosure of personal information resulting from a breach of an organization’s security safeguards, or from a failure to establish those safeguards.

If it is reasonable to believe the breach of security safeguards creates a real risk of significant harm to the individual:

Organizations will be required to

Ninth Circuit further entrenches circuit split over standing in data breach cases

By Spencer Persson (US) on March 20, 2018 Posted in Data breach, Dispute resolution and litigation

On March 8, 2018, the Ninth Circuit issued its highly anticipated decision in In re Zappos.com, Inc., finding that allegations of future risk of identity theft from a data breach are sufficient to confer standing. This decision fuels an ongoing circuit split, pitting the D.C., Sixth, Seventh and now Ninth Circuits against the Second, Fourth, and Eighth Circuits over whether the mere exposure of personal information – without actual identity theft or credit/debit card fraud – establishes Article III standing.… Continue Reading

Vicarious liability in UK data breach-related litigation – is Morrisons a game-changer?

By Steven Hadwin (UK), Jonathan Ball (UK), Ffion Flockhart (UK), Marcus Evans (UK) and Ralph Wilkinson (UK) on December 4, 2017 Posted in Data breach, Dispute resolution and litigation

The High Court in London has handed down a judgment establishing that, as a matter of English law, a company can be held vicariously liable in respect of data breaches caused by its employees.

Draft mandatory data breach reporting regulations released for comment in Canada

By John Cassell (CA) on September 20, 2017 Posted in Data breach

On September 2, 2017, the Government of Canada published proposed new data breach regulations in the Canada Gazette.

These regulations set out specifics regarding the mandatory data breach reporting requirements under the Personal Information Protection and Electronic Documents Act.

The PIPEDA Amendments were passed in June, 2015 but are not yet in force.

Overview

The Regulations set out the proposed requirements for the reporting of data breaches of security safeguards (each, a Breach). Under the PIPEDA Amendments, a report to the Privacy Commissioner of Canada is required if it is reasonable in the circumstances to believe that the … Continue Reading

“But the emails” – companies’ SEC filings reflect ransomware risks

By Anna Rudawski (US) on September 11, 2017 Posted in Compliance and risk management, Data breach

The Equifax breach will likely devour the entire breach news cycle in the near term, given the size of the incident and that it gets to the essence of the company’s business of maintaining some of the most sensitive consumer information. Still, in what for the moment might seem like a more pedestrian risk, companies continue to be affected by ransomware. One of the unique aspects of ransomware is that it does not involve just stealing information, but makes the information unavailable to the business. If critical information is unavailable, there is operational impact and often a material effect that … Continue Reading

Delaware amends data breach notification law

By on August 29, 2017 Posted in Data breach

Earlier this month, Delaware revamped its data breach notification law, with changes to go into effect April 14, 2018. Most notably, the new law requires any entity that has suffered a data breach that includes social security numbers to provide free credit monitoring services to affected residents for one year. The entity must provide all information necessary for the resident to enroll in such services as well as instructions for how to implement a credit freeze. This makes Delaware the second state to require credit monitoring services be provided to residents at no cost following a breach. (Connecticut has a … Continue Reading

Target Resolves State Attorney Generals’ Investigation

By on May 25, 2017 Posted in Data breach, Regulatory response

On May 23, 2017, it was announced that Target Corporation had settled the investigation initiated by the Attorneys General[1] of 47 states and the District of Columbia resulting from its 2013 data security incident. Besides the $18.5 million being paid (the largest State AG data breach settlement amount to date), it is the promised remedial measures that are of most interest to those following data breach enforcement actions.… Continue Reading