The Commodity Futures Trading Commission (CFTC) has made another foray into data security, announcing today an order settling charges against AMP Global Clearing LLC (AMP) stemming from AMP’s failure to supervise the implementation of its information systems security program. Between June 21, 2016 and April 17, 2017, AMP stored thousands of customer records in an improperly protected internal network. This fact was discovered after an unknown third-party, with no affiliation to AMP, accessed AMP’s network and copied 97,000 files containing personally identifiable information. The third party then contacted federal authorities, and later AMP. Although AMP cooperated with the CFTC and worked to fix the issue, the CFTC later brought charges against the company for failing to supervise the implementation of critical provisions of AMP’s information systems security program. Continue Reading CFTC Settles Charges Against AMP Global Clearing for Failing to Supervise Implementation of its Security Program
Lyft recently confirmed that it is investigating whether its employees were accessing its customer database without appropriate authorization to obtain personal information, including rides taken by Facebook CEO Mark Zuckerberg. The investigation was announced less than six months after Uber entered into a Federal Trade Commission (FTC) consent order to resolve allegations of similar behavior by its own employees.
The investigation demonstrates the importance of revisiting internal compliance measures in the wake of legal developments that may be relevant to a particular company or industry. Companies need to maintain comprehensive privacy programs to ensure the confidentiality of the personal information that they collect. Such programs should include, at a minimum: Continue Reading Lyft Employees Demonstrate Need for Privacy Compliance Management
Federal contractors may soon be required to meet heightened requirements for information security under two new proposed rules issued by the General Services Administration (GSA). The first proposed rule, GSAR Case 2016-G511 “Information and Information Systems Security,” will require that federal contractors “protect the confidentiality, integrity and availability of unclassified GSA information and information systems from cybersecurity vulnerabilities and threats in accordance with the Federal Information Security Modernization Act of 2014 and associated Federal cybersecurity requirements.” This proposed rule builds on new cybersecurity requirements mandated by the Department of Defense for federal contractors, DFARS Section 252.204-7012 which recently became effective. Continue Reading Proposed GSA Rules Will Require Federal Contractors to Meet New Cybersecurity Standards
A bipartisan group of Colorado legislators proposed legislation that, if enacted, would significantly change the requirements for how Colorado entities protect, transfer, secure, and dispose of documents containing personal identifying information. The proposed legislation also would expand the types of information covered by the Colorado Breach Notification Law and add additional requirements for companies that have suffered a data breach, such as a 45-day deadline to provide notice to affected individuals. Click here for a discussion of the proposed legislation.
2017 brought a new trend in cybersecurity law – state agency rulemaking independent of legislative action. To be sure, Massachusetts has long had cybersecurity regulations on the books, but those regulations were enacted based on a legislative mandate. What occurred in 2017 is different because individual state agencies in New York, Colorado, and Vermont took it upon themselves to promulgate regulations directed at filling a perceived need to ensure that regulated entities were taking proper steps to protect confidential information. That action – and the expectation that we will see more in 2018 – has added another level of complexity to the web of state and federal laws that govern this area. In fact, in another sign that we can expect even more action in this area, at the end of 2017, the National Association of Insurance Commissioners issued a 13 page model data security law. Continue Reading State Cybersecurity Regulations: A Look Back at 2017