As the year winds down, we take a look back at the business law issues that generated the most buzz in each of our practice areas. In the area of cybersecurity and data privacy, we saw new threats emerge as regulators and businesses struggle to keep pace.
In case you missed some of our posts regarding cybersecurity and data privacy, below is a brief recap:
Internet of Things: As the Internet of Things continues to grow, so do the associated security risks, including unauthorized access, misuse of personal information, and personal safety concerns. In 2015, the risks associated with “connected” cars took center stage with the much-publicized hack of the Jeep Grand Cherokee. Due to a security flaw, hackers were able to remotely control the SUV via its UConnect entertainment system.
Government Coordination: The Obama Administration and Congress have both claimed that they made cybersecurity a top priority. Earlier in the year, the President signed an Executive Order intended to promote information sharing regarding cyber threats impacting the private sector. Both chambers of Congress have passed versions of the Cybersecurity Information Sharing Act (CISA), which is intended to address the growing number of corporate data breaches. However, critics of the controversial bill contend that the lack of privacy protections opens the door for wide scale government surveillance.
FTC Oversight: In recent years, the Federal Trade Commission (FTC) has been increasingly bringing administrative actions under Section 5 of the Federal Trade Commission Act against companies that suffered data breaches due to allegedly deficient cybersecurity. In August, the Third Circuit Court of Appeals affirmed the agency’s cybersecurity authority, which confirms that businesses should take the FTC seriously when it comes to data security.
Third-Party Vendor Vulnerability: Regulators, such as the Securities and Exchange Commission and New York State Department of Financial Services, have recently raised concerns that corporate cybersecurity policies and procedures fail to provide sufficient oversight of outside vendors that often have access to secure networks and sensitive data. Hackers are also aware of such vulnerabilities and are using third parties to infiltrate their primary targets. Accordingly, it is imperative that businesses conduct sufficient due diligence regarding the privacy and data security measures adopted by third-parties vendors that have access to sensitive data.
Sophisticated Email Scams: The Business Email Compromise (BEC) scam, a sophisticated email scheme, has resulted in an estimated $1.2 billion in losses worldwide. In the United States, scammers defrauded more than 7,000 companies between October 2013 and August 2015. The fraud typically targets businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The perpetrators compromise legitimate business e-mail accounts by utilizing social engineering or computer intrusion techniques to conduct unauthorized transfers of funds.
Do you have any feedback, thoughts, reactions or comments concerning cybersecurity and data privacy? Feel free to leave a comment below for Fernando M. Pinguelo If you have any questions about this post or would like assistance with your legal needs, please contact me or the Scarinci Hollenbeck attorney with whom you work.
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Cybersecurity and Data Privacy Year in Review
Author: Scarinci Hollenbeck, LLC
As the year winds down, we take a look back at the business law issues that generated the most buzz in each of our practice areas. In the area of cybersecurity and data privacy, we saw new threats emerge as regulators and businesses struggle to keep pace.
In case you missed some of our posts regarding cybersecurity and data privacy, below is a brief recap:
Internet of Things: As the Internet of Things continues to grow, so do the associated security risks, including unauthorized access, misuse of personal information, and personal safety concerns. In 2015, the risks associated with “connected” cars took center stage with the much-publicized hack of the Jeep Grand Cherokee. Due to a security flaw, hackers were able to remotely control the SUV via its UConnect entertainment system.
Government Coordination: The Obama Administration and Congress have both claimed that they made cybersecurity a top priority. Earlier in the year, the President signed an Executive Order intended to promote information sharing regarding cyber threats impacting the private sector. Both chambers of Congress have passed versions of the Cybersecurity Information Sharing Act (CISA), which is intended to address the growing number of corporate data breaches. However, critics of the controversial bill contend that the lack of privacy protections opens the door for wide scale government surveillance.
FTC Oversight: In recent years, the Federal Trade Commission (FTC) has been increasingly bringing administrative actions under Section 5 of the Federal Trade Commission Act against companies that suffered data breaches due to allegedly deficient cybersecurity. In August, the Third Circuit Court of Appeals affirmed the agency’s cybersecurity authority, which confirms that businesses should take the FTC seriously when it comes to data security.
Third-Party Vendor Vulnerability: Regulators, such as the Securities and Exchange Commission and New York State Department of Financial Services, have recently raised concerns that corporate cybersecurity policies and procedures fail to provide sufficient oversight of outside vendors that often have access to secure networks and sensitive data. Hackers are also aware of such vulnerabilities and are using third parties to infiltrate their primary targets. Accordingly, it is imperative that businesses conduct sufficient due diligence regarding the privacy and data security measures adopted by third-parties vendors that have access to sensitive data.
Sophisticated Email Scams: The Business Email Compromise (BEC) scam, a sophisticated email scheme, has resulted in an estimated $1.2 billion in losses worldwide. In the United States, scammers defrauded more than 7,000 companies between October 2013 and August 2015. The fraud typically targets businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The perpetrators compromise legitimate business e-mail accounts by utilizing social engineering or computer intrusion techniques to conduct unauthorized transfers of funds.
Do you have any feedback, thoughts, reactions or comments concerning cybersecurity and data privacy? Feel free to leave a comment below for Fernando M. Pinguelo If you have any questions about this post or would like assistance with your legal needs, please contact me or the Scarinci Hollenbeck attorney with whom you work.
