Category

Information Security

17 July 2019

Another UK ICO GDPR Privacy Fine of £99m ($123m) Proposed Just One Day After the Largest Ever

Just a day after the ICO provided notice of its intention to fine British Airways £183m ($228m) over a separate breach (please see our blog post here), on Tuesday, July 9, 2019, the ICO released another statement of its intention to fine Marriott International, Inc. (“Marriott”) over £99m ($123m) in relation to a security incident affecting the Starwood reservation database which Marriott had acquired in 2016 and discovered in November 2018. The statement came in response to Marriott’s filing with the US Securities and Exchange Commission that the ICO intended to fine it for breaches of the GDPR.

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08 July 2019

UK ICO Issues Largest Ever GDPR Privacy Fine of £183m ($228m)

Today we saw the ICO issue a notice of its intention to fine British Airways £183.39m for infringements of the GDPR – a record fine and the largest seen in the UK and the EU. The proposed fine relates to a cyber incident which BA notified to the ICO (as BA’s lead data protection authority, DPA) in September 2018. The incident involved the theft from the BA website and mobile app of personal data relating to customers over a two-week period. In terms of next steps, BA now has an opportunity to make representations to the ICO as to the proposed findings and sanction.

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19 March 2019

Important Changes to the Singapore Data Privacy Regime

Singapore may soon mandate data breach notifications and data portability via amendments to the Singapore Personal Data Protection Act, or PDPA. The PDPA applies to all organizations that collect, use and disclose data in Singapore, and the PDPA has extraterritorial effect as it applies to all organizations collecting, using or disclosing personal data from individuals in Singapore (whether or not the company  has a physical presence in Singapore).

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12 March 2019

FTC Seeks Comment on Proposed Changes to its GLBA Safeguards and Privacy Rules

Over the last few years, States have enacted increasingly aggressive legislation concerning data privacy and security, raising concerns that companies will be subject to a patchwork of different standards.  Congress has recently taken notice, convening hearings on potential federal privacy legislation, with the possibility of preemption a hot topic during the hearings.  Last week, the Federal Trade Commission (“FTC”) got into the act as well, releasing two notices of proposed rulemaking (“NPRM”) on potential changes to its the Standards for Safeguarding Customer Information (“Safeguards Rule”) and Privacy of Consumer Financial Information Rule (“Privacy Rule”) under the Gramm-Leach-Bliley Act.  The proposed amendments – and particularly the proposed changes to the Safeguard Rule – signal the FTC’s desire to align its rules with those of key states and to further protect customer information held by financial institutions.

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28 February 2019

FCA Publishes Wholesale Banks and Asset Management Cyber Multi-Firm Review Findings

The UK Financial Conduct Authority (“FCA”) has carried out a multi-firm review of cybersecurity practices with a sample of 20 firms in the wholesale banking and asset management sectors (the “Report”). The review aimed to look more closely at how wholesale banking and asset management firms oversee and manage their cybersecurity, including the extent to which firms identify and mitigate relevant cyber risks and their current capability to respond to and recover from data security incidents.

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26 February 2019

NERC $10,000,000 Fine of Public Utility Highlights the Need for Cybersecurity Preparedness and CIP Compliance Programs

On January 25, 2019, the North American Electric Reliability Corporation (“NERC”) asked the Federal Energy Regulatory Commission (“FERC”) to approve a settlement issuing a record $10 million fine against an unidentified utility resulting from violations of critical infrastructure protection standards (“CIP”) occurring mostly between 2015 and 2018 (referred to hereafter as the “Settlement Agreement”).  Although none of the violations resulted in any reported outages, NERC concluded that the cumulative effect of the violations posed a serious risk to the reliability of the bulk U.S. power grid because “many of the violations involved long durations, multiple instances of noncompliance, and repeated failures to implement physical and cyber security protections.” Settlement Agreement at 12.

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11 February 2019

Michigan Adopts National Association of Insurance Commissioners’ (NAIC) Insurance Data Security Model Law

On December 28, 2018, Michigan adopted the National Association of Insurance Commissioners’ (NAIC) Insurance Data Security Model Law in the form of Michigan H.B. 6491 (Act). By doing so, Michigan joins Ohio and South Carolina as the third state to adopt the Model Law and the fifth state – along with Connecticut and New York – to have enacted cybersecurity regulations focused on insurance companies. See CT Gen Stat § 38a-999b (2015); 23 NYCRR 500. (Please see our prior coverage for more information on Ohio and South Carolina’s adoption of the Model Law).  Moreover, adoption of the Model Law is still gaining steam with Rhode Island potentially next in line.

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29 January 2019

FINRA Issues Its 2019 Risk Monitoring and Examination Priorities Letter

On January 17, the Financial Industry Regulatory Authority (FINRA) released its annual Risk Monitoring and Examination Priorities Letter (Letter), which identifies topics that FINRA will focus on in 2019. Unlike in previous years, this Letter primarily discusses new topics and priorities in areas of ongoing concern while not repeating topics that have been at the center of FINRA’s attention over the years. FINRA notes, however, that while traditional topics such as cybersecurity,1 recidivist brokers and anti-money-laundering (AML) may not be discussed extensively in the Letter, FINRA will nonetheless review firms for compliance regarding these areas of focus.

As always, firms should use the Letter to review their compliance and supervisory procedures carefully and make any necessary revisions. Firms also should be prepared to explain their compliance and supervisory policies in these areas in their upcoming FINRA examinations and provide documentation of relevant reviews. The following is a discussion of some of the more salient points of the FINRA Letter. (more…)

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14 January 2019

Ohio Adopts National Association of Insurance Commissioners’ (NAIC) Insurance Data Security Model Law

On December 19, 2018, Ohio adopted the National Association of Insurance Commissioners’ (NAIC) Insurance Data Security Model Law.  By doing so, Ohio joins South Carolina as the second state to have adopted the Model Law and the fourth state – along with Connecticut and New York – to have enacted cybersecurity regulations for insurance companies.  See CT Gen Stat § 38a-999b (2015); 23 NYCRR 500.  (For more information on South Carolina’s adoption of the Model Law, see our prior coverage.)  (more…)

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08 January 2019

HHS Releases Cybersecurity Guidance for Healthcare Organizations

On December 28, 2018, the U.S. Department of Health and Human Services (HHS) released a four-volume cybersecurity guidance document for healthcare organizations. The publication, “Health Industry Cybersecurity Practices: Managing Threats and Protecting Patients” (HICP), is the result of a government and industry collaboration mandated by the Cybersecurity Act of 2015. The HICP is not limited to individually identifiable health information but instead covers organizations’ enterprise-level information security more generally. HHS describes the publication as “practical, understandable, implementable, industry-led, and consensus-based voluntary cybersecurity guidelines to cost-effectively reduce cybersecurity risks for healthcare organizations of varying sizes.” Notwithstanding their voluntary nature, these HHS-backed cybersecurity recommendations are likely to serve as an important reference point for the industry. (more…)

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