Ransomware is a scary term for many business leaders and CISOs who dread being hit with a malware attack that locks up their data and could shut down operations. They expect to find that oddly-worded ransom note advising how they could recover access to their data, for a sizable fee of course. For a variety
Reminder: The FTC “Safeguards Rule” Compliance Date is Next Month
The Federal Trade Commission updated its “Standards for Safeguarding Customer Information” (“Safeguards Rule”) and extended the compliance deadline to June 9, 2023. Some entities still may be wondering – “Do these regulations apply to my business?” and “What do I have to do?”
Back in 2021, we provided a high-level summary of the Safeguards Rule
Stolen Databases Obtained In Transaction Leads to $400K Settlement with PA and OH Attorneys General
This post deals with another data breach, yes, hackers were able to compromise the organization’s systems and exfiltrate personal information relating to over 45,000 Pennsylvania and Ohio residents. However, there are several important takeaways from this case, including cybersecurity in corporate transactions, data retention and destruction, and incident response planning.
According to the Assurance of
Getting Healthcare in 2023 and Beyond…Virtually…and Securely
Much is being written about “remote work” – is it productive, will demand for it continue or be curtailed in a recession, is cybersecurity compromised, does it inhibit workplace culture, collaboration, etc. Lots of questions, few clear answers. The discussion seems largely centered on office workers, professional services providers like me, who generally can perform
Nevada Gaming Commission Adopts Cybersecurity Regulations
On December 22, 2022, the Nevada Gaming Commission (NGC) adopted regulations creating new cybersecurity requirements for certain gaming operators. This action joins agencies in other jurisdictions moving quickly to protect consumers and their personal information in the gaming industry. The NGC adopted the October 17, 2022 version of the regulations, which become effective January
OCR Reminds Healthcare Providers and Their Business Associates – You Need an Incident Response Plan!
We have been quite busy this October, which happens to be National Cybersecurity Awareness Month. But, we did not want to let the month go by without some recognition; and we are grateful to the HHS Office for Civil Rights (OCR) for this always timely reminder for HIPAA covered entities and business associates – have
North Carolina Prohibits Public Sector Entities from Paying Ransom in a Ransomware Cyberattack
Organizations attacked with ransomware have a bevy of decisions to make, very quickly! One of those decisions is whether to pay the ransom. Earlier this year, I had the honor of contributing to a two-part series, entitled Ransomware: To pay or not to pay? (Part 1 and Part 2). Joined by Danielle Gardiner
Indiana Tightens the State’s Deadline for Providing Notification of a Data Breach
States continue to tinker with their breach notification laws. The latest modification to the Indiana statute relates to the timing of notification. On March 18, 2022, Indiana Governor Eric Holcomb, signed HB 1351 which tightens the rules for providing timely notice to individuals affected by a data breach.
Prior to the change, the relevant section
FTC Blog: “The FTC Act creates a de facto breach disclosure requirement”
On May 20, 2022, the Federal Trade Commission’s Team CTO and the Division of Privacy and Identity Protection published a blog post entitled, “Security Beyond Prevention: The Importance of Effective Breach Disclosures.” In the post, the FTC takes the position that in some cases there may be a de facto data breach notification
Cyber Incident, Ransom Payment Reporting to DHS Mandatory for Critical Infrastructure Entities
Included within the Consolidated Appropriations Act, 2022, signed by President Joe Biden on March 15, the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (Act) creates new data breach reporting requirements. This new mandate furthers the federal government’s efforts to improve the nation’s cybersecurity, spurred at least in part by the Colonial Pipeline cyberattack that snarled the flow of gas on the east coast for days and the SolarWinds attack. It’s likely the threat of increasing cyberattacks from Russia in connection with its war effort in Ukraine also was front of mind for Congress and the President when enacting this law.
In short, the Act requires certain entities in the critical infrastructure sector to report to the Department of Homeland Security (DHS):
- a covered cyber incident not later than 72 hours after the covered entity reasonably believes the incident occurred, and
- any ransom payment within 24 hours of making the payment as a result of a ransomware attack (even if the ransomware attack is not a covered cyber incident to be reported in i. above)
Supplemental reporting also is required if substantial new or different information becomes available and until the covered entity notifies DHS that the incident has concluded and has been fully mitigated and resolved. Additionally, covered entities must preserve information relevant to covered cyber incidents and ransom payments according to rules to be issued by the Director of the Cybersecurity and Infrastructure Security Agency (Director).
The effective date of these requirements, along with the time, manner, and form of the reports, among other items, will be set forth in rules issued by the Director. The Director has 24 months to issue a notice of proposed rulemaking, and 18 months after that to issue a final rule.
Some definitions are helpful.
- Covered entities. The Act covers entities in a critical infrastructure sector, as defined in Presidential Policy Directive 21, that meet the definition to be established by the Director. Examples of these sectors include critical manufacturing, energy, financial services, food and agriculture, healthcare, information technology, and transportation. In further defining covered entities, the Director will consider factors such as the consequences to national and economic security that could result from compromising an entity, whether the entity is a target of malicious cyber actors, and whether access to such an entity could enable disruption of critical infrastructure.
- Covered cyber incidents. Reporting under the Act will be required for “covered cyber incidents.” Borrowing in part from Section 2209(a)(4) of Title XXII of the Homeland Security Act of 2002, a cyber incident under the Act generally means an occurrence that jeopardizes, without lawful authority, the integrity, confidentiality, or availability of information on an information system, or an information system. To be covered under the Act, the cyber incident must be a “substantial cyber incident” experienced by a covered entity as further defined by the Director.
- Information systems. An information system means a “discrete set of information resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of information” which includes industrial control systems, such as supervisory control and data acquisition systems, distributed control systems, and programmable logic controllers.
- Ransom payment. A ransom payment is the transmission of any money or other property or asset, including virtual currency, or any portion thereof, which has at any time been delivered as ransom in connection with a ransomware attack.
A report of a covered cyber incident will need to include:
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