Scarinci Hollenbeck, LLC
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Author: Scarinci Hollenbeck, LLC
Date: April 16, 2014
The Firm
201-896-4100 info@sh-law.comWith cybersecurity being at the forefront of clients’ and customers’ minds, businesses should take reasonable precautions to protect digital data that they create, collect, process, and/or maintain. And, according to The New York Times, companies are now requiring their law firms to increase their security and demonstrate that their confidential information is protected. In fact, it has been reported that some financial institutions are requesting their law firms to complete lengthy questionnaires detailing their security measures to protect sensitive digital data.
Reportedly, the Target data breach was accomplished by hackers using electronic credentials stolen from a vendor. Moreover, with the Internet of Things (IoT) making it easier to create, collect, process, and/or maintain data in a variety of ways, potential vulnerability points of entry are increasing in scope and frequency. Focusing on vendor’s security measures is essential for reducing legal liability in this area. Requiring a vendor to show proof of cybersecurity can also assist with holding the vendor accountable. It will also help ensure the vendor continues to provide reliable and consistent online security efforts and stay apprised of the latest threats to data security.
Finally, businesses may consider inquiring about obtaining additional insurance to cover digital data breaches.
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