Cybersecurity and Vulnerability Assessments: Evolving Law on Hacking and Extortion in the Age of Bug Bounties

Companies and law enforcement are increasingly turning to white hat hackers for help.  The FBI apparently paid consultants over $1,000,000 to unlock an iPhone used by one of the shooters in the San Bernardino attacks, and companies such as Microsoft, Uber, Facebook, and Google are paying hackers tens of thousands of dollars to find vulnerabilities in their systems.  Davis Polk’s recent cybersecurity webcast discusses why companies are using pools of white hat hackers for certain … Continue Reading

Another Law Firm Suffers a Major Cyber Breach as Millions of Sensitive Client Documents Are Made Public in the “Paradise Papers”

Appleby, a multi-national law firm known for its tax planning services, is the latest law firm to suffer a major cyber breach in an event that has been dubbed the “Paradise Papers.”  This breach mirrors the Panama Papers leak from two years ago, which exposed millions of documents from the Mossack Fonseca law firm.

Appleby, like Mossack Fonseca, is known for its high-net-worth clients and its use of offshore entities to assist them in tax … Continue Reading

More Tough Penalties for Late Breach Notification

On Halloween, the New York and Vermont attorneys general obtained a $700,000 settlement from Hilton for, among other violations, late breach notification.  Earlier this week, we noted that the Reserve Bank of India (“RBI”) imposed a $1 million USD fine on India’s Yes Bank for violating RBI’s 2 to 6 hour data breach notification requirement.   So, as we have been predicting for some time, it seems that regulators are starting to step up enforcement and … Continue Reading

One Million Dollar Breach Notification Fine for Indian Bank Shows Increased Efforts by Regulators to Force Information Sharing Following a Breach

The $1 million fine that was recently levied against Yes Bank shows the increasing risks of failing to provide timely breach notification.  On October 23, 2017, the Reserve Bank of India (“RBI”) announced that it was fining India’s Yes Bank $1 million USD for failing to comply with RBI’s breach notification requirement, among other violations.  Yes Bank experienced a cyber breach around May 2016, but did not become aware of the incident until September 2016.  … Continue Reading

Upcoming Webcast: Cyber Security and Vulnerability Assessments: Evolving Law on Hacking and Extortion in the Age of Bug Bounties

Register for Webcast

Please join us on November 15, 2017, 12:00 pm to 1:00 pm ET for a discussion on cyber vulnerability assessments and the evolving law on hacking and/or extortion, including:

  • Why companies are turning to pools of hackers to test their cyber defenses.
  • The line between lawful and unlawful conduct for white hat hackers trying to uncover a company’s cyber vulnerabilities.
  • The new DOJ guidelines on these kinds of vulnerability assessments.
  • How to
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Reducing Unneeded Data Becoming Part of Cybersecurity Best Practices

In our cybersecurity and data management webcast now available below, Davis Polk partners Avi Gesser, Gabe Rosenberg, and associate Matt Kelly, recently discussed getting rid of old documents to reduce cyber risk.

To avoid ending up in the news as the latest victim of a cyber-attack, companies are looking to improve their data security.  One way is data reduction─getting rid of old data that you don’t need for business purposes and you … Continue Reading

After Equifax, to Whom Should the CISO Report?

During congressional hearings earlier this month, senators grilled Richard Smith, the former Equifax CEO, on the company’s reporting structure for cybersecurity; specifically, on the appropriateness of Equifax’s CISO reporting to the general counsel.  This has caused several companies to question their own reporting structures for cybersecurity issues.  So what is the right structure for CISO reporting?  As usual, there is no one right or wrong answer.

We have seen many different reporting structures for CISOs … Continue Reading

FinRegReform Blog Post: Security Concerns Prompt Questions Regarding Whether the SEC Should Delay the CAT

The Davis Polk Financial Regulation Reform Team recently blogged about the breach of the SEC’s EDGAR database and how that breach impacts the Consolidated Audit Trail (“CAT”)

“In the wake of a highly-publicized cybersecurity breach involving the SEC’s EDGAR system, SEC Chairman Jay Clayton has been in the hot seat at recent congressional hearings, fielding pointed questions as to whether the SEC should delay implementation of the Consolidated Audit Trail (“CAT”).  The SEC has not … Continue Reading

Your Sensitive Information Was Accessed in a Government Hack? You May Have No Remedy.

In a statement issued on Wednesday, September 20th, the U.S. Securities and Exchange Commission (SEC) revealed that it was investigating a 2016 data breach of its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) database.  The SEC does not believe that personally identifiable information was exposed, but the investigation is still ongoing and raises questions regarding government agencies’ obligations to protect sensitive information, and the potential litigation challenges facing individuals who are impacted by hacks of … Continue Reading

Will Equifax Lead to Increased State-Level Cybersecurity Enforcement?

Regulators in almost every U.S. state have the authority to enforce cybersecurity compliance under their state’s laws, but until recently, they have rarely exercised this power, leaving enforcement mostly to federal agencies like the FTC.  With the recent Equifax breach, this appears to be changing.

The Massachusetts Attorney General filed a complaint against Equifax on September 17, 2017, asserting that Equifax violated Massachusetts Data Security Regulations by failing to safeguard personal information of credit applicants.  … Continue Reading

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