Cybersecurity & Data Privacy

468453132On April 3, 2016, the public learned that millions of client documents from the Panamanian law firm and corporate services provider Mossack Fonseca & Co. (MF) had made their way to an international organization, the International Consortium of Investigative Journalists (ICIJ), and that the information would be used to publish potentially damaging stories. In addition, authorities across the globe, from Japan to Switzerland to the United States, are reviewing the documents and investigating potential tax implications, regulatory violations and criminal activity.

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WebA recent Washington Post article examined the issue of patient privacy complaints after medical providers responded to negative Yelp® reviews about medical care. The issue of how a professional can (or should) respond to negative online reviews is not limited to physicians or medical facilities. While attorneys are not subject to HIPAA, they are all well aware that attorney-client communications are privileged and confidential and only the client can waive that privilege.

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Consider this scenario: A young couple entrusts you, an experienced real estate attorney, to assist them in the purchase of their first home. Days before closing, your unsecured email account gets hacked and your client receives an email, which to all appearances is from you, telling them to wire funds to a third-party account instead of bringing the cash to closing. You only find out about “your” email to your client after the transfer has been made and your clients’ savings, accumulated over many years, is gone. What exactly do you think you can say to your clients to make it better?

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iStock_000074015155_LargeWilson Elser’s Cyber Incident Response Team has seen an alarming uptick in cyber-criminal activity targeted at professional services firms, particularly accounting firms. As described in more detail below, the criminal activity follows a very specific pattern. We take this opportunity to remind all professionals of the need to be wary and skeptical of what communications they receive electronically. Consider starting the New Year with training and education for yourself as well as your partners, staff and employees on cyber risk and how to best avoid an attack and mitigate any damages if an attack occurs. In the past three months, we have noticed a pattern of activity targeted at small to midsize professional services firms. Attackers attempt to gain access to computer systems containing sensitive financial information, which may result in a legal duty on the part of the professional to notify their clients that their confidential information was or may have been exposed.

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California SB 178 Seeks to Apply Warrant Requirement to Electronic Devices and Online Data

Gavel-onKeyboard_iStk-11481160_300x200px (2)The California Senate is currently reviewing the proposed California Electronic Communications Privacy Act (SB 178), which generally requires law enforcement entities to obtain a search warrant before accessing data on an electronic device or from an online service provider. The purpose of the bill is to codify and expand on existing case law pertaining to electronic devices and online privacy. SB 178 is co-sponsored by the Electronic Frontier Foundation and the California Newspaper Publishers Association.

Among other things, the bill requires the issuance of a search warrant or wiretap order before a government entity can (1) compel the production of or access to electronic communication information from a service provider, (2) compel the production of or access to electronic device information from any person or entity except the authorized possessor of the device, and (3) access electronic device information by means of physical interaction or electronic communication with the device.


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