For years, corporate boards have hired third-party companies to conduct financial audits to assure that there is no fraud or other breaches of fiduciary responsibility by management. Cyber risks should be managed similarly. Who can thoroughly evaluate whether management is prepared to protect the company when its systems are attacked or when a data breach occurs? Is management prepared to execute the company’s incident response plan, or is it just sitting on the shelf untested?
Continue Reading Effective Incident Response Requires Good Cyber Exercise—Is Your Company in Shape?

Welcome to a three-part series that provides an overview of the California Invasion of Privacy Act (CIPA), examines recent CIPA litigation involving smart speakers, and proposes defenses in response to an alleged violation.

CIPA in the Age of Smart Devices

The California Invasion of Privacy Act (CIPA)[1]—traditionally used by law enforcement and the plaintiffs’ bar to address illegal recording/eavesdropping on phone calls—has seen renewed interest in the age of smart speakers. Smart speakers, such as Amazon’s Alexa, Google Home and Apple’s Siri, are voice-enabled devices where the user utters a “wake word” to activate a “virtual assistant”.  A number of putative class actions have recently been filed over these “virtual assistants” and whether they illegally record individuals without their consent.  This recent spate of lawsuits highlights CIPA-compliance risks associated with these new technologies. This article provides an overview of CIPA’s history and features, addresses recently filed CIPA smart-device cases, and recommends defenses for responding to a smart device CIPA action.
Continue Reading The Revitalization of CIPA Claims in the New Age of “Smart” Speakers (Part I)

U.S. Department of Defense (DoD) contractors face new cybersecurity compliance requirements, including a significant deadline set for December 31, 2017.

Most DoD contracts now include clauses imposing obligations on contractors’ protection of government information and reporting of cyber incidents. These obligations include a requirement for contractors to comply with the cybersecurity standards set forth in the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171.

Contractors must comply with the NIST standards no later than the end of calendar year 2017. Submission of a proposal to DoD now serves as a specific representation that the offeror meets these compliance requirements. Failure to meet the NIST standards potentially opens the door to more stringent government enforcement actions and liability under the False Claims Act.
Continue Reading DoD Cyber Compliance Deadline Fast Approaching – Here’s What Government Contractors Need to Know

On Tuesday, October 4, 2016, the Department of Defense (DoD) issued a long-awaited final rule implementing statutory requirements (10 U.S.C. §§ 391, 393) as part of 32 C.F.R part 236 regarding the reporting, by defense contractors, of certain cyber incidents relating to the contractor’s electronic systems.  These reporting requirements are above and beyond what contractors