Happy Cyber Monday!

In honor of Computer Security Day (which was Saturday), we have a quiz designed to test your grasp of key laws, regulations, and best practices that keep your personal, financial, and sensitive information safe.

Financial institutions are now required to notify the Federal Trade Commission about any security breach that involves the information of 500 customers or more. The breach must be reported no later than 30 days after it is discovered.

Joseph Sullivan, Uber’s beleaguered former Chief Information Security Officer, was back in the news last month when he appealed his 2023 conviction for his role in concealing a 2016 breach of Uber’s network and customer data. 

New York’s Cybersecurity Regulation continues its phased roll-out on November 1, when licensed financial services companies face a host of new requirements aimed at bolstering breach readiness and improving their ability to recover from disastrous situations. Companies will be required to put in writing how they would address several common pressure points in the breach response and mitigation process – including how they plan to recover from backups if critical data is lost.

Data breaches have become a serious issue for businesses, leading to numerous putative class action lawsuits alleging that the defendants failed to prevent the unauthorized disclosure of personally identifiable information or protected health information of their employees or customers.

On October 1, Montana became the newest state with a comprehensive data privacy law, the Montana Consumer Data Privacy Act.

The Commonwealth of Pennsylvania has amended its Breach of Personal Information Notification Act. The amendments, available here 2024 Act 33 - PA General Assembly (state.pa.us), took effect last week, on September 26. The key provisions are as follows:

On April 24, the Federal Trade Commission announced that it had finalized changes to its Health Breach Notification Rule - to address emerging technologies.

Specifically, the Rule was broadened to (1) apply to entities not currently subject to the Health Insurance Portability and Accountability Act, (2) clarify what a breach of security is, (3) expand notification methods, (4) impose additional requirements for the content of notifications, and (5) amend the timeframe for issuing required notifications to the FTC.

Businesses continue to be subjected to a steady stream of consumer class action lawsuits alleging improper collection or disclosure of information from their websites. A variety of laws and legal claims are used to support the suits. Some lawsuits assert violation of laws that are not particularly cutting edge, such as the Video Privacy Protection Act, or cite to non-disclosed use of more modern technology such as tracking pixels. In many of the lawsuits, both types of claims are asserted.  

Laura Balson in our Chicago office recently discussed an amendment to the Illinois Biometric Information Privacy Act. At that time, the Illinois House and Senate had passed an amendment to Illinois Biometric Information Privacy Act, or “BIPA,” which was awaiting the signature of Gov, J.B. Pritzker (D). The amendment has now been signed and must be a consideration in BIPA litigation and in the use of biometric data.

Most significantly, the amendment specifies that an individual is limited to one recovery, even if there were multiple scans that violated the Act. This is good news for businesses.