U.S. and Foreign Cybersecurity and Intelligence Agencies Recommend Measures to Counteract Threat of Russian Cyberattacks

On January 11, 2022, the Cybersecurity and Infrastructure Security Agency (CISA), the Federal Bureau of Investigation (FBI), and the National Security Agency (NSA) recently released a joint Cybersecurity Advisory warning critical infrastructure operators about the threat of Russian state-sponsored cyberattacks and recommended best practices to minimize disruption from such an attack (the “Advisory”).

The advisory was promptly endorsed by the National Cyber Security Centre, a division of Government Communications Headquarters (“GCHQ”), a UK intelligence agency. Within a few days, data security experts at Microsoft, Palo Alto Networks (“PANW”), and Mandiant confirmed reports of increasing Russian cyberactivity and offered their own recommendations for hardening measures (many of which overlap with the Advisory). (more…)

Caremark’s Comeback Includes Potential Director Liability in Connection With Data Breaches

Caremark­-based claim against a board of directors alleging a failure to monitor corporate operations has been said to be “the most difficult theory in corporation law upon which a plaintiff might hope to win a judgment,” or at least to withstand a motion to dismiss.  Yet, Caremark has taken on renewed importance — as noted by this blog — following recent high-profile successes on duty-to-oversee claims, most notably in Marchand v. Barnhill in 2019 and In re Boeing in September 2021, and recent shareholder lawsuits alleging that data breach- and cybersecurity-related failures would have been preventable were it not for oversight failures by corporate officers and directors, are being plead asserting Caremark claims. (more…)

U.S. Commerce Department Proposes Expansion of Information and Communications Technology and Services Review Process

On November 26, 2021, the U.S. Department of Commerce (Commerce) issued a notice of proposed rulemaking (Proposed Rule) implementing Executive Order 14034 on Protecting Americans’ Sensitive Data from Foreign Adversaries (EO 14034). The Proposed Rule would bring “connected software applications” into the scope of Commerce’s authority to review certain transactions involving information and communications technology and services (ICTS) in the U.S. supply chain and approve or prohibit such transactions or require mitigating measures.1

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FFIEC Guidance on Authentication and Access to Financial Institution Services and Systems

On August 11, 2021, the Federal Financial Institutions Examination Council (FFIEC)1 issued guidance establishing risk management principles and practices to support the authentication of users accessing a financial institution’s information systems and customers accessing a financial institution’s digital banking services (the Guidance). The Guidance is not intended to serve as a comprehensive framework but rather provides financial institutions with examples of effective risk management practices without endorsing any specific information security framework or standard.

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TSA Issues Directive to Enhance Pipeline Cybersecurity

The U.S. Department of Homeland Security’s Transportation Security Administration (“TSA”) issued a Security Directive, “Enhancing Pipeline Cybersecurity” on May 28, laying out new cybersecurity requirements for operators of liquids and natural gas pipelines and LNG facilities designated as critical infrastructure.

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