KMK Law Cybersecurity & Privacy Blog

On August 11, 2015, federal prosecutors in New York and New Jersey filed criminal charges against two alleged hackers and seven other individuals who allegedly traded securities based upon stolen information. The Securities and Exchange Commission filed a related civil complaint against those same nine individuals, as well as 23 other individuals and corporate entities.

As promised, the U.S. Office of Management and Budget on Tuesday released a set of proposed cybersecurity guidelines to help government agencies draft contracts with information technology contractors.

As the Supreme Court revels in its summer hiatus, and the federal government slows to its August halt, here is a status update and forecast on pending data breach litigation: 

Last week, the Eastern District of Louisiana joined the growing majority of district courts around the country that have held increased risk of future identity theft or identity fraud posed by a data breach is not sufficient to confer Article III standing on individuals whose information has been compromised but not yet misused.

On April 29, the Department of Justice published its “Best Practices for Victim Response and Reporting of Cyber Incidents”, which is an excellent, easy to read summary of steps companies can take to protect against cybersecurity incidents 

Cyber insurance
The risk of a data breach now tops the list of concerns of many in-house counsel and C-suite executives. Cyber insurance is an important component in managing this risk and mitigating the damages and loss that follow a data breach.