Only four months in and 2021 has already been a big year for state cybersecurity safe harbor legislation. Two states, Utah and Connecticut, have recently enacted or introduced a breach litigation safe harbor to incentivize businesses to protect personal information by adopting industry-recognized cybersecurity frameworks such as the National Institute of Standards and Technology’s (NIST) […]
Data Security
NYDFS Announces Cybersecurity Settlement, Addresses Multi-Factor Authentication Rules
On April 14, 2021, the New York Department of Financial Services (“NYDFS”) announced a settlement with National Securities Corporation (“National Securities”), a licensed insurer, in connection with claims under the NYDFS Cybersecurity Regulation (23 NYCRR Part 500). The consent order requires payment of a $3M penalty and mandatory remediation in response to alleged failures to […]
NYDFS Reports Major Cybersecurity Settlement
In early March, the New York Department of Financial Services (NYDFS) announced a settlement involving a $1.5M penalty and mandatory remediation in response to a mortgage lender’s alleged failure to report a cyber breach, and other alleged cybersecurity failures. This enforcement action marks the second public enforcement action under 23 NYCRR Part 500 (the “Cybersecurity […]
Virginia Ready to Pass First State Privacy Statute after CCPA
Both houses of Virginia’s legislature recently passed the Virginia Consumer Data Protection Act (S.B. 1392; H.B. 2307) (the “VCDPA”). If approved by the state governor, the VCDPA would become the United States’ second comprehensive state privacy law behind the California Consumer Privacy Act (CCPA). The VCDPA is similar to the CCPA and the European Union’s […]
New Law Requires HHS to Consider Recognized Security Practices as Mitigating Factor When Determining Penalties
On January 5, 2021, the president signed into law H.R. 7898, an Act that amends the Health Information Technology for Economic and Clinical Health (HITECH) Act to require the Secretary of Health and Human Services (HHS) to consider specific recognized security practices of covered entities and business associates when making certain determinations regarding fines, penalties, […]