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.
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
