As a part of National Cybersecurity Month, last week the Federal Trade Commission (FTC) launched a campaign to help educate and assist small businesses with cybersecurity. In conjunction with the Department of Homeland Security (DHS), the National Institute of Standards and Technology (NIST), and the Small Business Administration (SBA), the FTC has published a collection
SEC Report Reiterates Cybersecurity Implications for Internal Control Requirement
On October 16, 2018, the Securities and Exchange Commission (SEC) issued a report on the results of investigations made by the SEC’s Division of Enforcement into nine public companies that were victims of cyber-related frauds. In each case, the SEC investigation focused on whether the target companies had complied with the applicable requirements of the Securities Exchange Act of 1934, as amended (Act). The Act requires public companies to devise and maintain a system of internal control over financial reporting designed to provide reasonable assurance that, among other things, transactions are executed in accordance with company management’s authorization, that transactions are properly recorded and that access to assets is permitted only with management’s authorization.
Ultimately, the SEC did not pursue enforcement actions against any of these companies, but released the report to advise public companies that cyber-fraud incidents must be taken into account when designing and maintaining internal control procedures.
Continue Reading SEC Report Reiterates Cybersecurity Implications for Internal Control Requirement
CTIA Reveals Cybersecurity Certification for IoT Devices
CTIA, a trade association representing the wireless communications industry, recently announced a new cybersecurity certification program for IoT cellular-connected devices. The announcement comes shortly after NIST hosted a workshop in July regarding Considerations for Managing IoT Cybersecurity and Privacy Risks.
CTIA states, “[t]he program will protect consumers and wireless infrastructure, while creating a more
NIST Small Business Cybersecurity Act
On August 14, 2018, President Trump signed into law S. 770, the “NIST Small Business Cybersecurity Act.” This Act requires the National Institute of Standards and Technology (NIST) to develop and disseminate resources for small businesses to help reduce their cybersecurity risks. The Act states that the resources should be:
- “Generally applicable and usable by
NYDFS Cybersecurity Deadline Approaching
The eighteen month transitional period under the New York Department of Financial Services (NYDFS) Cybersecurity Requirements for Financial Services Companies expires on September 4, 2018. These requirements apply to entities, “operating under or required to operate under a license, registration, charter, certificate, permit, accreditation or similar authorization under the Banking Law, the Insurance Law or
U.S. Treasury Recommends National Data Breach Standard
The U.S. Treasury recently released a report identifying improvements that would support nonbank financial institutions but also embrace innovation and technology. Among other things, the report recommends the creation of a national data breach notification standard and the development of effective national and international Fintech policies, including Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) efforts.
Sixth Circuit Finds Coverage Under Crime Policy for Business Email Compromise
This post originally appeared in our sister publication, Insurance Recovery Blog.
For the second time in ten days, a federal appeals court ruled a crime insurance policy provides coverage for losses arising from a business email compromise. In American Tooling Center, Inc. v. Travelers Casualty and Surety Company of America, No. 17-2014, 2018 WL 3404708 (Sixth Circuit July 13, 2018), the Sixth Circuit held that Travelers was obligated to provide coverage for a loss the insured suffered when it wired $834,000 to a thief’s bank account, believing that it was transmitting a payment to one of its Chinese subcontractors.
Losses arising from business email compromise exceeded $12.5 billion between October 2013 and May 2018. Business email compromise is a form of social-engineering fraud that targets both businesses and individuals who make payments by wire transfer. Thieves accomplish business email compromise by accessing e-mail accounts of vendors or customers of the insured or by invading the computer system of the insured. The thief then provides fraudulent instructions to the insured to wire funds to the thief’s bank account, usually for the stated purpose of paying legitimate invoices.Continue Reading Sixth Circuit Finds Coverage Under Crime Policy for Business Email Compromise
NIST to Withdraw Outdated Cybersecurity Publications
On August 1, 2018, NIST will withdraw eleven SP 800 publications that are considered out of date. These publications will not be revised. According to NIST the following publications will be withdrawn:
- SP 800-13 (October 1995), Telecommunications Security Guidelines for Telecommunications Management Network
- SP 800-17 (February 1998), Modes of Operation Validation System (MOVS): Requirements and
Cybersecurity & Retirement Plans
It seems that most employees and plan participants “think” their retirement money and data are not at risk. This is due, in part, because:
- there are few published incidents of breaches or potential hacks;
- there has been not a single legal decision involving a cybersecurity breach and a retirement plan; and
- there is no comprehensive federal regulation that protects qualified retirement plans and service providers.
This blog discusses whether retirement plans are really at risk; and if so why. It concludes with some helpful hints and practical advice to reduce such risks, some of which are tips employers (or plan sponsors) can share with retirement plan participants.Continue Reading Cybersecurity & Retirement Plans
South Carolina Requires Cybersecurity Program for Insurance Licensees
South Carolina has become the first state to enact cybersecurity legislation for the insurance industry.
On May 3, Governor McMaster signed a bill requiring South Carolina insurers to “develop, implement, and maintain a comprehensive information security program” for their customers’ data. 2017 SC H.B. 4655 (NS). Based on the insurance industry model rules, the South Carolina Insurance Data Security Act has three primary aims: it requires “licensees” to prevent, detect and remediate insurance customer data breaches.Continue Reading South Carolina Requires Cybersecurity Program for Insurance Licensees