Archives: Cyber Liability

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Payment Instruction Fraud and Cyber Insurance Coverage

As I have noted in prior posts, a recurring challenge many organizations face these days is the threat of “payment instruction fraud,” also sometimes called “social engineering fraud” or “payment impersonation fraud.” In these schemes scammers use official-seeming email communications to induce company employees to transfer company funds to the imposters’ account. Among the many … Continue Reading

Insurer’s Bid to Dismiss Complaint Seeking Coverage for Payment Instruction Loss Denied

One of the more challenging issues businesses must confront as wrongdoers have turned Internet tools into criminal devices has been the rising threat of payment instruction fraud, or, as it is sometimes called, social engineering fraud. Along with these crimes have come vexing questions of insurance coverage for the ensuing losses. Courts have struggled to … Continue Reading

Guest Post: Some Good News for the Cybersecurity Class Action Bar

As discussed in the following guest post from John Reed Stark, a recent development in the class action litigation arising out of the massive Marriott International data breach could have significant ramifications for other claimants asserting class action claims — including securities class action claims — based on data breaches or other cybersecurity incidents. Stark … Continue Reading

Guest Post: Time to Face the Music – Cyber Risk is D&O Risk – And Things Are Getting Worse!

As this blog’s readers know, there have been a number of management liability claims that have been raised against companies that have experienced cybersecurity incidents. In the following guest post by Paul Ferrillo and Chris Veltsos, the authors argue that cyber risk is in fact D&O risk and that the risk is growing. The authors … Continue Reading

Guest Post: Buckle up Directors: Cybersecurity Risk and Bankruptcy Risk Are Not Mutually Exclusive

In the following guest post, Paul Ferrillo and Christophe Veltsos consider the implications of the recently announced bankruptcy of the corporate parent of a medical billing company following a high-profile date breach at the billing company. Paul is a shareholder in the Greenberg Traurig law firm’s Cybersecurity, Privacy, and Crisis Management Practice. Chris is a … Continue Reading

Guest Post: Rating Agency Downgrades Following Cyber Breaches — Are They the Canary in the D&O Coal Mine?

In the following guest post, Paul Ferrillo and Chris Veltsos take a look at the latest consequences that companies are now facing following a data breach – a rating agency downgrade. Paul is a shareholder in the Greenberg Traurig law firm’s Cybersecurity, Privacy, and Crisis Management Practice. Chris is a professor in the Department of … Continue Reading

Guest Post: Cyber Risk Health Factors Case Study — Technology Alone Can’t Fix Security

In the second part of a three part series, Paul Ferrillo and Christophe Veltsos explain how cyber risk assessments can provide value. Paul is a shareholder in the Greenberg Traurig law firm’s Cybersecurity, Privacy, and Crisis Management Practice. Chris is a professor in the Department of Computer Information Science at Minnesota State University, Mankato where … Continue Reading

Guest Post: Claims Against Directors for Failure to Insure Against Cyber Risk Are More Likely Now

In the following guest post, Francis Kean, Executive Director FINEX Willis Towers Watson, take a look at an interesting and arguably surprising recent U.K. judicial decision in which a supermarket chain was held liable for the unauthorized Internet disclosure of its employees’ personal data. Francis has some interesting observations about the decision’s possible implications as … Continue Reading

Guest Post: The Missing Link of Cybersecurity — Time for a Cyber Risk Check-Up

The threats to data security are substantial. Every organization faces some level of cyber risk. So how do we get better at cybersecurity? That is the question that Paul Ferrillo and Christophe Veltsos ask in the following guest post. Paul is a shareholder in the Greenberg Traurig law firm’s Cybersecurity, Privacy, and Crisis Management Practice. … Continue Reading

Guest Post: Information Security and Privacy – What Business Leaders Need To Know

In the current environment, most people are aware that there are serious pitfalls and problems involved with data security and privacy. However, business leaders may not always be aware of their legal and ethical duties for securing employee, customer, and partner information. In the following guest post, Libby Benet, JD, CIPP US, Principal Benet Consulting, … Continue Reading

Guest Post: War Exclusions and Cyber Attacks

In June 2017, the food company Mondelez International was one of the companies hit by the major global computer malware attack dubbed NotPetya. According to news reports, the malware caused damage to the company’s network servers and computers in excess of $100 million. Various sources have attributed the malware attack to the Russian military. Mondelez … Continue Reading

Guest Post: Beat the Clock: 5 Important Steps to Deal with Today’s Complicated Cyber Breach Disclosure World

Cybersecurity threats are on the rise. Companies that find themselves hit with data breaches face a number of challenges, including in particular the challenge of responding to strict breach disclosure and notification requirements. In the following guest post, Paul A. Ferrillo, a shareholder in the Greenberg Traurig law firm’s Cybersecurity, Privacy, and Crisis Management Practice, … Continue Reading

Guest Post: Ransomeware’s Dirty Little Secret: Most Corporate Victims Pay

As cybersecurity has become an increasingly important consideration for all corporate operations, one of the most pernicious problems has been the rise of so-called “ransomware” attacks – that is, systems breaches in which hackers take control of corporate networks and demand ransom payments as a condition of unlocking the systems. In the following guest post, … Continue Reading

Yahoo Data Breach-Related Derivative Suit Settled for $29 Million

In recent years, plaintiffs’ lawyers have filed a number of management liability lawsuits against the executives of companies that have experienced high-profile data breaches. These lawsuits have either been filed as shareholder derivative lawsuits or securities class action lawsuits. By and large, the cases filed as shareholder derivative lawsuits have been unsuccessful. However, in a … Continue Reading

Are GDPR Fines and Penalties Insurable?

When the European Union’s updated General Data Protection Regulation (GDPR) went into effect on May 25, 2018, media reports focused on the potentially massive fines that the regulation authorizes – the regulation authorizes fines of up to €20 million or 4 percent of a company’s annual worldwide revenue, whichever is higher, for noncompliance with the … Continue Reading

Cybersecurity Disclosure Practices and Standards

In February 2018, the SEC updated its cybersecurity disclosure guidelines for reporting companies, emphasizing the importance to investors and markets for prompt and robust disclosure relating to cyber issues. Indeed, in April, the agency brought its first enforcement action relating to cybersecurity enforcement issues. In its recent annual report, the agency’s enforcement division emphasized that … Continue Reading

SEC Warns of Need for Internal Controls to Prevent Cyberscams

The threat of cyberscams in the form of what has been called “social engineering fraud” or “payment instruction fraud” has become pervasive. In these swindles, imposters posing as senior corporate executives or company vendors direct company personnel to transfer funds to accounts that the imposters control. Losses from these frauds can be substantial, and, as … Continue Reading

Guest Post: The Speed of Breaches and Other Bad News in Cybersecurity Incident Response

 For any organization experiencing a data breach, the organization’s response to the incident remains one of the most important and yet one of the most challenging next steps. In the following guest post, Paul Ferrillo, a partner in the New York office of the Greenberg Traurig law firm, examines the ways that an organization can … Continue Reading
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