Cybersecurity & Tech

The Legislation: Strengthening State and Local Cyber Crime Fighting Act of 2017

What does the bill do? Allows the National Computer Forensics Institute to train law enforcement to combat cyberthreats

Will training be available for state and local law enforcment? yes

Rep. Ratcliffe introduces bill to provide cybersecurity training to local law enforcement

• Manufacturing is the 2nd most hacked industry, behind health care
• Cybersecurity risks include:
  • operational downtime
  • physical damage
  • product manipulation
  • theft of intellectual property and sensitive data
• Cybersecurity in  manufacturing isn’t an IT issue, its a business issue

Global Manufacturing | The importance of data security in manufacturing

The Agencies: FTC and NHTSA

The goal of rulemaking: fight cybersecurity and privacy threats from vehicles with systems that connect to the internet

Bloomberg Privacy & Security Law Report | CONNECTED CAR CYBERSECURITY: DRIVING HARD FOR PRIVACY AND SECURITY

State: California

The legislation: 

• require manufacturers to secure the cyberprotections of consumer goods sold in the state
• require consumer consent before the device stores consumer data

Sacramento Bee | Are your household items spying on you? One California lawmaker has an answer

California SB 327 (2017) 

State: Indiana

Indiana legislation: HB 1444

What Indiana’s legislation does to penalize ransomeware users:

• Creates a new cyber crime for ransomeware
• Currently ransomeware would be a misdemeanor, this bill makes it a felony

Do other states treat ransomeare differently from other cyber crimes? Yes, California and Wyoming

SC Media | Cybercrime bills advance in two states

Wyoming legislature had a package of student data privacy bills which will:

• A bill to protect college students’ work and privacy- passed
• 2 bills protecting students’ digital information privacy
• A bill which would require the state superintendent and other agencies to develop guidelines for student data privacy, security and privacy- passed

Uinta County Herald | Legislative session wraps

State: California

The student data security bill:  Removes schools from the  California Electronic Communications Privacy Act

Where would student daat security responsibility lie? each school district

The profferred reasons why: Cyber bullying, schools need access to student electronic use

Record Bee | Bill would strip privacy protections from students and teachers

California’s AB 165 (2017)

State: Kansas

Details of the new Kansas agency on cybersecurity:

•  centralizing cybersecurity operations of state government within a new Cabinet-level agency
  • Kansas Information Technology Enterprise Agency.
• $10 M in annual funding just to combat hackers
• Exempts:
  • Elected state officials
  • Board of Regents’ at Kansas’ colleges and universities
  • Will exempt pension systems based on federal investment standards

Kansas House Bills 2331 and 2359 (2017)

Hutchinson News | In effort to shore up cybersecurity, Kansas panel supports formation of agency

The legislation:  Active Cyber Defense Certainty Act

The decriminlaization of hacking: If you’re a vicitm of hacking, this bill would allow you to hack the hackers. It’s like a Castle Doctrine for your Cyber Home.

Sophos | Bill proposes letting victims of cybercrime hack the hackers

The lawmakers: Rep. Joaquin Castro (D-Texas) and Sen. John Cornyn (R-Texas)

The legislative concept: Allow agencies, like Department of Homeland Security, to work with consortia

What could the private entities do for the agencies?

• help train local law enforcement and other government
• develop information sharing programs
• plan local cybersecurity strategies

The Hill | Bipartisan bill would let DHS team with consortiums on cybersecurity

Goals of Georgia’s Cyber Innovation Center:

• bring together government, universities and the private sector to develop and practice protocols that will mitigate attacks
• protect  Georgia’s citizens, businesses and institutions
• give Georgia’s technology economy a boost

Georgia’s Investment in the Cyber Innovation Center:

• Millions in state funds
• 15,000 sq.ft. facility to be an incubator for startup cybersecurity companies

State Tech Magazine | Q&A: Georgia CIO Calvin Rhodes on Launching a Cyber Innovation Center

• Influencing standards and best practices that are relevant to the understanding, adoption and widespread application of secure solutions, including smart cards, embedded chip technology, and related hardware and software
• Serving as an educational resource to its members and industry stakeholders implementing secure solutions
• Providing a forum for cutting-edge discussions and projects on issues surrounding the implementation of secure solutions
• Maintaining a voice in public policy that affects adoption and implementation of smart card, embedded chip and other security technologies
• Supporting the adoption and implementation of smart cards and smart card technology

Secure Technology Alliance | Smart Card Alliance Becomes Secure Technology Alliance as the Organization Expands Its Mission to Include a Broader View of Security Technologies

Pennsylvania courts have determined that an employer owes no duty to an employee against a data breach. Next Stop: Codification via the Legislature.

Data Protection Report | Pa. Appellate Court: Employer Owes No Duty of Care to Protect Employee Data Against Breach

The State:  Kansas

The issues that are clouding a bill to protect data stored in the cloud:

• Language that protects attorneys who strore client information in the cloud.
  • Opponents say it elevates this privilge above other privileges
• Language that limits release of the information to the subscriber.
  • Law enforcment says they can now gain access without a warrant to the information.
• Language that requires a warrant.

Topeka Capital Journal | Kansas House panel debates security of high-tech ‘cloud’ information storage

Long live the bitcoin in the Texas Constitution thanks to HJR 89 that protects all mediums of currency.

Texas HJR 89 (2017) 

The race: Ft. Lauderdale A1A Half Marathon

The runner’s claim to fame: 2nd fastest time for the race

Any guesses, man or woman who claimed the fast time? a woman

How did she get caught? She posted her GPS race data

SC Media | Char-IOTs of Fire: Marathon cheater exposed by own fitness tracking device, app

• 88% of ransomware attacks are health care
• In June 2016, health care records breached hit a high of 10,880,605
• cybersecurity breachs cost health care $6.2 BILLION
• 300% increase in big breaches- hackers are looking for data in large quantities

Health Care Dive | Charts: Must-know healthcare cybersecurity statistics

What screams fix cybersecurity laws? A breach of a voice recording teddy bear

What’s the issue that would be addresed in legislation?  The Teddy Bear company stored customer data and information on a public database that required no authentication. 

What does no authentication mean? No security protocols, no passwords, no limited IP addresses etc… It’d be like leaving your credit card statement on a public park bench.

TechHive | Smart teddy bears for kids suffer a contentious data breach

FoxNews | CloudPets data breach: Toy security in the spotlight

• 88% of hackers at the 2016 DEF CON conference say they can hack a target in 12 hours
• 81% of hackers say that they can identify and exfiltrate a target’s data in 12 hours
• 50% of hackers change their method each time
• 84% of hackers social engineer their vicitms- hello Facebook profiles
• 52% say training employees is effective

SC Media | Survey explores the minds of hackers: 81% claim they can compromise target in under 12 hours

Alexa, the Amazon product, home guru records voices. 

Alexa also records suspected murderers, at least it did in Arkansas. 

What kind of protection is Amazon seeking for the Alexa recordings? 

• Until law enforcement creates a compelling enough case, no Alexa recordings
• Amazon wants prosecutors to “prove the data isn’t available anywhere else and that it’s sufficiently related to the subject of the investigation”

Next step: Legislative fixes

The Verge | Amazon says Alexa’s speech is protected by the First Amendment

The Public Private Partnership: Virginia and Amazon

The role of Amazon: to support scalable cloud infrastructure and collaborate on cybersecurity educational efforts 

How far down the state employee food chain will education go? The partnership will also help educate teachers with cybersecurity courseware

Governor Terry McAuliffe | Governor McAuliffe Announces New Strategic Relationship With Amazon Web Services to Expand Cybersecurity Education  

A former top national security adviser says the cybersecurity legislation that is necessary is:      uniform definitions for cybersecurity across all government levels.

Why do we need uniform definitions?  Uniform defintions improve strategy for enforcement and legislation.

Defense of Democracies | Framework and Terminology for Understanding Cyber-Enabled Economic Warfare

5 ways oil and gas comapnies can minimize legal exposure from a data breach:

• Plan ahead. Have an incident reponse team in place.
• Insurance. Lots of policies cover data security now, check your policy.
• Stay up to date on data security laws & regulations. There are overlapping levels of laws between state and federal and overlapping agency jurisdictions.
• Create & Maintain a data policy. Prescribe what is retained and for how long.
• Train and test your employees.

Oil and Gas Financial Journal | Legal Liability From Cyber Attacks

What group is launching a new campaign fundraising tool? the Internet Association (Google, Facebook, et.al.)

How does the new fundraising tool work? 

• The Internat Association selects candidates for virtual meetings
• The virtual meetings allows people to ask candidates questions
• During which, people can donate money to the association’s political action committee and will be directly transferred to the candidate featured during the virtual meeting

The Hill | Internet group rolls out new political fundraising tool

What survey reveals that 1 in 4 U.S. Consumers had a health care data breach?  An Accenture survey released at HIMSS2017 in Orlando

What is the impact to health care providers? 25% changed health care providers

The Chair of the National Governor’s Association lays out 3 ways states can tackle data and cyber security:

• share disruption response plans
• establish cybersecurity operations centers
• convening cooperation among public safety agencies, the National Guard, and private partners.

3 States with model public-private partnerships, task forces, and cybersecurity commissions:

• California
• Indiana
• Virginia

The state landscape: Virginia

The cyber security proposals: make it a felony for cyber criminals to use ransomware

The reasons that the change in law may do more harm than good:

• the laws a jumbled with overlapping enforcement of multiple agencies
• the jumbled laws make it overburdensome for businesses to comply
• technology advances more quickly than laws

What do good cyber security laws do?

• They are principle-based
• Specify outcomes
• Do not target specific methods of action 
• Respect a business’s right to make informed, risk-based decisions 

Virginia Business | Cybersecurity legislation may do more harm than good

New Mexico’s House Bill 15  wants to put the state on par with other states by remedying  a gap in our existing consumer protections by:

• Requiring notice within 45 days 
• After Personal Identifying Information is Compromised
• With notification to the state attorney general and consumer credit reporting agencies

Los Alamos Daily Post | House Passes Data Breach Notification Act

A lawyer for Google says new laws are needed to cover data stored on the cloud for these reasons:

• Clear guidance for law enforcement and corporations
• Takes corporations out of the untenable position of being in the middle between customer privacy and law enforcement
• Laws crafted before cloud storage are not keeping up. Cloud data can’t be treated like paper documents

The Recorder | Google Lawyer Says New Laws Needed to Govern Cloud Data

Who was targeted by hackers? Backers of Mexico’s soda tax

The hack: text messages that family members had died, with funeral information. Dark, dark stuff.

It’s dark hacktivism in repsonse to activism.   Indeed there are companies that sell services in these dark arts.

NY Times | Spyware’s Odd Targets: Backers of Mexico’s Soda Tax

The Legislature: Congress

The data protection bill: Email Privacy Act to update a 1986 law on email

Where is the bill? It passed the House and is moving to the Senate

What’s the fundamental change in the Email Privacy Act? To universally require warrants for emails stored on 3rd party servers

Is this in line with industry standards? Yes, Google, Facebook, Apple, Microsoft and Verizon require warrants before they release emails stored on their servers

The Hill | House passes bill requiring warrants for email searches

State: California

Who pays for ID Protection when a private corportation has a data breach? The corporation

Who currently pays for ID protection when a locla government has a data breach? The person whose data was hacked

Is there a bill to make local governments pay for ID protection when a hack occurs? Yes, California Assembly Bill 241

Government Technology | When a Data Breach Happens, Will California Pay for Protection?

Long gone are the days when data breach notifications only applied to retailers, or so says New Mexico.

The Bill: House Bill 15 (2017) The Data Breach Notification Act

What it does:

• Any person who possess personal information about a New Mexican has 30 days to disclose any data breach
• Requires the state attorney general office to work with any person who has suffered a data breach that triggers notification to New Mexicans.

KOB 4 | Lawmaker sponsors data breach notification bill

The Company: Vizio 

The privacy breach:  installed software in televisions that recorded consumers tv habits

The regulatory enforcement: Federal Trade Commission and the New Jersey Attorney General

The fine: $2.2 million + must delete customer data by March

Engadget | Vizio tracked and sold your TV viewing habits without consent (updated)

the hospital: Children’s Medical Center of Dallas 

the data security charge: years of noncompliance with HIPAA rules and after failing to request a hearing on the penalty. Since 2010 the hospital used unencrypted devices to store HIPAA protected info

the regulator: U.S. Department of Health and Human Services’ Office for Civil Rights

the fine: $3.2 million civil money penalty

Day Pitney LLP | United States: Hospital Hit With $3.2M Penalty for Ongoing Health Data Security Lapses

Add Nevada to the list of states moving to create an Office of Cyber Defense. Governor Sandoval proposes funding it with $3.5 million.

The Office of Syber Defense will be within the Nevada Department of Public Safety and will offer assistance to local government agencies and private industry.

Las Vegas Review Journal | Marijuana, cybersecurity among debates to happen in Nevada Legislature

Where: California

How is cybersecurity impacting education statutes? Requiring instruction on determining truth. 

Is this a way to repsond to fake news and election hacking? Yes. 

How did they wrap this up in pretty policy words?  By requiring instruction in “civic online reasoning” means the ability to judge the credibility and quality of information found on Internet Web sites, including social media.”

California’s AB 155 (2017)

Holland- the country, not the city in Michigan, will count all its ballots by hand as a reaction to the possibility of election tampering by hackers.

USA Today | Amid hacking fears, Dutch to use pen, paper for vote

The Government cannot compete with tech companies for the employees. Money, money, money.

The Recorder | NY Law Journal | FBI Official: Feds Can’t Compete With Top Tech Companies for Cybersecurity Analysts

Where:  Maryland

The Governor’s cybersecurity proposal:  tax credit accessibility to investors in cybersecurity startups

The state goal: Make Maryland a leader in cybersecurity

WCBM | Governor Larry Hogan’s Robust 2017 Legislative Agenda

Which police department? Cockrell Hill Police Department

What digital data was lost by way of a ransomware attack? video evidence & digital documents

How was the ransomware attack triggered?  “someone clicked on a cloned email made to look like it was sent from a department email address”

What did the police department do in response to the ransomeware? wiped their servers in lieu of paying the ransom

WFAA | Cockrell Hill police lose years worth of evidence in ransom hacking

A ransomware attack hit Washington D.C.’s closed circuit tv 8 days before inauguration. Here’s what you need to know to get up to speed:

• 70% of storage devices recording data from D.C. police surveillance cameras were hit
• Forced major city wide reinstallation
• The city addressed the ransomeware without paying a ransom by:
  • taking devices offline
  • removing all software
  • restarting the system

Washington Post | Hackers hit D.C. police closed-circuit camera network, city officials disclose

The legislation:  Security and Privacy in Your Car Study Act of 2017

The authors:  Reps. Joe Wilson (R-SC) and Ted Lieu (D-CA)

What does the bill do? Brings together the following entities to determine how to regulate data for connected cars:

• National Highway Traffic Safety Administration
• Federal Trade Commission
• National Institutes of Standards and Technology
• Department of Defense
• OEMs and suppliers
• SAE international
• academics

What elements do these groups need to consider in their recommendations for regulation?

• identify what’s necessary to isolate critical systems in a vehicle from the rest of its software
• relevant standards for firewalls and anomaly detection systems
• techniques to prevent or discourage malicious intrusions
• best practices for storing the data generated by connected cars
• timeline for implementing all of this

How fast would they need to make recommendations?  Within 1 year

Ars Technica | Worried about cybersecurity and the connected car? There’s a bill for that

How constituents feel about data breach laws:

• 68% of internet users believe current laws are not good enough
• 64% believe the government should do more to regulate advertisers
• Favor limits on how long the records of their activity are stored
•  74% of Americans say it is “very important” to be in control of their personal information
• 64% of Americans have personally experienced a major data breach
• 49% feel that their personal information is less secure than it was 5 years ago
•  41% of Americans have dealt with fraudulent charges on their credit card
• 15% have received notice that their Social Security number had been compromised.
• 70% of Americans anticipate major cyberattacks in the next 5 years on our nation’s public infrastructure

EPIC.ORG | Pew Survey Finds Support for New US Privacy Laws, Limits on Data Retention: | Pew Survey Finds Majority of Americans Are Data Breach Victims

• 9.2 % were medical sector breaches
• 51% were business sector breaches
• 23.4% unknown industry sector
• 11.7% government breaches
• 4.7%  education sector breaches

Becker’s Review Health IT & CIO | Medical industry accounted for 9.2% of breaches in 2016

• adding biometric and geolocation data to the definition of personal information that triggers a data breach notification
• regulations related to surveilance equipment used by law enforcement
• protecting disclosure of a a person’s religious affilaition from the government

The Recorder | What to Expect in California Data Security and Privacy in 2017

• State Affairs recommendations:
  • a dedicated and collaborative cybersecurity initiaitive 
  • clear legislative direcetives
  • direct agencies to collaborate
  • a central repository for its cybersecurity program
• Urban Affairs recommendations:
  • appropriate funds for a grant program to support cybersecurity training and information sharing costs for small municipalities and utilities
  • creation of cybersecurity training and information sharing programs within agencies
  • increase the level of cybersecurity expertise in state agencies
  • statewide cybersecurity coordinator in the Governor’s office and improving the cybersecurity resources and structure of the Department of Information Resources 
• Government Operations and Transparency recommendations:
  • Require Executive Director, Commissioner, CEO level approval for annual agency cyber security risk report 
  • Increase the number of cybersecurity practitioners in Texas 
  • Create a Central Legislative Committee Responsible for Cyber Security Risks 
  • Funding to upgrade legacy systems
  • promoting collaboration, innovation, and entrepreneurship in cyber security to facilitate the commercialization of university research and development  
• Investments and Financial Services recommendations:
  • support fully funding strategies within the Texas Department of Information Resources’ (DIR) Legislation Appropriations Request (LAR) to protect the state government’s computer network from cybersecurity threats, including security policy and awareness and security services.
• County Affairs recommendations:
  • require all counties to install and maintain appropiate level of cybersecurity 

Massachusettes, home of the Draft Kings, passed new fantasy sports regulations.

The editorial board reactions: Fantasy Sports Regulations have no cybersecurity

The cybersecurity response from daily fantasy sports: 

• fantasy sports regulations do require comapnies to have security measures
• comapnies are subejct to prosecution for not following the regulations
• the beauty of fantasy sports is that the playing information is public information

What cybersecurity experts say:

• fantasy sports has 3 levels of cybersecurity to be concerned about: its operating platform, the application used by the player, and the network.
• target for hackers could either be player information or impacting the game itself
• recommend policymakers “borrow from other established security benchmarks, such as NIST, CIS, and ISO”

Legal Sports Report | Daily Fantasy Sports Regulation And Cybersecurity: A Closer Look

 CryptoMove embraces a business model that replaces encryption with breaking data into pieces and moving it around. 

Instead of hackers having  way to your document in a garbage can, hackers have to reassemble microshredded pieces. 

Beware regulators who set a standard level of encryption as a requirement. The industry changes.

Tech Crunch | Security startup CryptoMove fragments data and moves it around to keep it secure

1. Multidisciplinary application. Cybersecurity is not just for the Information Officer.
2. Data is an asset. Protect it. Have a game plan for how long you’re keeping the asset.
3. Data lives on mobile devices and moveable devices too. Protect those too.
4. Know the information you keep.
5. Train employees. Employees create cybersecurity breaches too.
6. Legislative and regulatory data security standards are the floor, not the ceiling.

Tech Target | Six keys to creating strong data-security measures

Train teachers in cybersecurity. Make data security part of the faculty and administrator school culture. 

In 2013,  400 school data security bills were considered.

Only 1, Colorado’s, included teacher training. 

Slate | The Best Way to Protect Students’ Personal Data

The European Union Agency for Network and Information Security recommends  3rd party cybersecurity evaluations for self driving and connected cars. 

Why the need for 3rd parties? The current cybersecurity standards for vehicles is not enough.

Bonjour, new opportunities to provide cybersecurity evaluations…

The European Union Agency for Network and Information Security | Cyber Security and Resilience of smart cars

Texas House Rules debate on Wednesday, January 11, 2017, added cybersecurity issues to the jurisdiction of the House Committee on Government Transparency and Operation.

Local governments are concerned about federal DHS cybersecurity regulations for local elections, because those federal regulations may :

• Add an unnecessary layer of bureaucratic oversight
• Would centralize an inherently local — and decentralized — system

What did DHS do to trigger these concerns? Declared elections to be critical infrastructure, which triggers additional protections and resources from the federal government.

Governing | New Election Cyberprotections Cause Confusion and Concern

New York Governor Andrew Cuomo set forth his plan for protecting the cybersecurity of New Yorkers by:

• Creating a “response team” to handle confidential information breaches from state & local governments 
• Create a graduated system of punishments for computer tampering crimes based on the amount of damage
• More severe punishments for identity Theft

New York Law Journal | Cuomo Promises New Cybersecurity Measures in 2017

States are changing their cybersecurity statutes to include as protected information:

• usernames
• email addresses
• passwords
• security questions
• security  answers

Mondaq | Morgan Lewis | Three States Join Others to Expand Personal Information Definition to Include Usernames or Email Addresses

What entity promulgated new medical device cybersecurity rule guidance? The FDA

What prompted the new guidance? Claims of heart device hacking

Policy Issues around medical device hacking:

• assess whether the risk of patient harm is sufficiently controlled or uncontrolled
• protection of PHI- protected health information- by devices
• comprehensive risk management programs
• NIST cybersecurity protocols should be the standard

Where did the data breach occur? State of Nevada medical marijuana database

How many people had personally identifiable records affected? more than 11,000, but no patient records

The response by the state: Take the database offline

Weed News | Nevada Medical Marijuana Data Breach Highlights Need For Industry Information Security

Reno Gazette Journal | Thousands of Nevada medical marijuana dispensary applications exposed online

• 3.7 million patients and customers affected
• Phoenix, AZ
• Banner Health
• Hackers accessed credit card processing information + patient data information

Beckers Health IT & CIO Review | 11 of the biggest healthcare data breaches of 2016

Banner Health | Banner Health Identifies Cyber Attack

The state upping the ante on data security rules for the finance industry: New York

The new New York rules announced December 28th will:

• Effective Date will be March 1, 2017 instead of January 1st
• Require annual reporting to the state about data security compliance
• Requires financial institutions to maintain comprehensive audit trails
• Mandatory reporting of any cybersecurity event within 72 hours
• Financial institutions must appoint a Chief Information Security Officer (CISO)
• Required multifactor authentication for staff accessing internal networks or information systems externally

Business Insider | New York delays new cybersecurity rules for financial firms​

What do you need to know about data breaches?

• 93% could have been prevented according to the Internet Society Study
• breaches cost the US $500 billion per year

The carrot & the stick:

• Increase the accountability of entities that hold data
• By requiring the entities to shoulder more of the cost of a breach
• Allow these entities to offer “credible security signals to the market” to provide a benefit to the entity

Tech Crunch | The carrot and stick of data breaches

The state: Maryland

The data breach: Student records, including names, brthdates and Social Security numbers in Frederick County Public Schools

Why legislation was triggered? 

• A state senator didn’t think he was getting enough answers from education officials
• An April 2015 audit called for increased data security measures for student data

The legislative proposal: 

• Requiring up to 5 years of identity and credit monitoring for data breach victims
• Not require schools to transfer student records to the state education agency until the state has “an industry-accepted standard in their information technology systems”

Government Technology | Maryland Delegate Promises New Legislation in Wake of Student Data Breach

• Support the establishment or continuation of a valid patient-physician relationship;
• Have a clinical evidence base to support their use in order to ensure mHealth app safety and effectiveness;
• Follow evidence-based practice guidelines, to the degree they are available, to ensure patient safety, quality of care and positive health outcomes;
• Support care delivery that is patient-centered, promotes care coordination and facilitates team-based communication;
• Support data portability and interoperability in order to promote care coordination through medical home and accountable care models;
• Abide by state licensure laws and state medical practice laws and requirements in the state in which the patient receives services facilitated by the app;
• Require that physicians and other health practitioners delivering services through the app be licensed in the state where the patient receives services, or be providing these services as otherwise authorized by that state’s medical board; and
• Ensure that the delivery of any services via the app be consistent with state scope of practice laws.

Data Law Insights | Crowell Morning | Illinois’ First Settlement under Biometric Law; AMA Adopts Principles for Mobile Health Apps; Ecuador to Enact Data Privacy Law

On the horizon is rulemaking to make cars talk to each other. Cars will transfer information about how the car is moving and where it is, that gives rise to these legislative and regulatory questions?

• Can the data stored or transmitted by cars be used in tort litigation?
• Can the data stored or transmitted by cars be used in any litigation?
• Do data breach standards apply of this information is hacked?

The future is here. U.S. Department of Transportation is proposing new rules to require new cars to talk to each other.

NY Times | Cars Talking to One Another? They Could Under Proposed Safety Rules

The U.S. Air Force forewarns that data security is more than computers. Its networked mechanics and platforms.

There’s even handy jargon sure to catch on- operationalize cyber security.

Sound familiar? Sounds likeutilize medical equipment that transmits information, or dolls that contain information about children, or your Fitbit.

Defense Systems | Air Force: Cyber security extends beyond IT

• 60+ carriers offer stand-alone cyber insurance policies
• $3.25 billion in gross written premiums
• growth potential to $7.5 billion
• Cyber security breaches are the 3rd highest global business risk
• $7 million is the average cost of a breach

Insurance Information Institute | U.S. Cyber Insurance Market Grows Amid Data Breach Concerns

• 23 of the 47 states that have data breach laws require the state Attorney General to be notified
• State Attorney Generals litigate data breaches
  • in Texas, the Attorney General reached a settlement with Paypal app, Venmo, for $175,000 requiring the company to “improve disclosures regarding security and privacy”
• many state Attorney Generals set policy like hio Attorney General who launched, CyberOhio

Lexology | McGuirre Woods | In Data Privacy, Don’t Forget the State Attorneys General

What to do when retired Lt. Gen. Michael Flynn is reported to have installed secret data lines in his Pentagon office?

If you’re a U.S. Senator you request a denial of security clearance.

U.S. Senator Shaheen | Shaheen, Blumenthal Call on Top Intelligence Officials to Review Security Clearance Given to Lt. Gen. Michael Flynn

Internal data security threats top all but 0.3% of cyber security concerns.

What are examples of internal data security threats? 

• malware being installed by workers
• stolen or compromised credentials
• stolen data
• abuse of administrative privileges

SC Media | Everyone is worried about internal cybersecurity threats, report

To meet federal data security requirements in contracts, GSA added Adobe’s data-centric security and electronic signature solutions to GSA’s IT Schedule 70.

The key facts from GSA:

• Increased acquisition efficiency for data security and electronic signatures.
• Over $350 million in potential cost savings for the American taxpayer.
• Agencies will be afforded tiered discounts by leveraging the buying power of the federal government.
• Reduced contract duplication and administrative cost with clear Terms & Conditions.
• Enhanced security of government data.
• Users afforded the option to replace paper processes with fully automated electronic signature workflows.

GSA | GSA & Adobe to Deliver Streamlined Data Security, Electronic Signature Solutions for Government

FCW| The Business of Federal Technology | GSA adds data security solutions to Schedule 70

• Experian predicts hackers will target hospital networks above insurance companies.
• Why? hospital patient data is very valuable
• How? hospital networks are decentralized and its harder to maintain data security protocols

Becker’s ASC Review | Data breach forecast for 2017: Cyber criminals to target healthcare

The gift: talking dolls

The data security threat: The dolls record, without consent, children’s voices and saves the voices.

The laws and rules at issue both federal and state: Deceptive Trade Practices Act. Federally enforced by the FTC, and by the AG in Texas. 

Wallstreet Journal | Talking Dolls Pose Privacy Risk to Children, Advocacy Groups Allege

Tech companies are calling for a Treasury Department UnderSecretary for Technology.

Which tech companies? The big ones- Google, Amazon and Apple- and others

What tech issue are they wanting eyes on? FinTech- of technology in finance

FinTech laws coming to a state near you…

The Hill | Apple, Google, Amazon ask Trump for focus on financial tech

What data was shared? Chicago Public Schools improperly shared student information that led to direct advertising by a Charter School. 

How did a 3rd party gain access to public school data? A school employee willingly shared it with the Charter School.

SC Media | Chicago Public School data improperly shared

The legislative step that could protect utility districts from ransomeware threats? 15 minute backup intervals

The 15 minute regular backup allowed Nebraska’s Central Platte Natural Resources District to thwart a ransomeware attack.

SC Media | Nebraska irrigation district thwarts ransomware attack with automatic backup

How did San Francisco’s Muni system stop a ransomeware attack that held its system hostage? In 3 steps:

• Shut down electronics- opened fare gates & shut down ticket machines
• Contacted Homeland Security
• Relied on its technology team to restart the system from a backup

The success of Muni’s actions:

• Friday night the electronic ticketing shut down, by Monday the system was up and running
• No confidential information was obtained by the hackers
• Muni never communicated with the hackers during the process

Governing | How San Francisco’s Transit System Warded Off Ransomware Hackers

Where: Michigan

The regulators who want to impsoe data security standards on utilities: Michigan Public Service Commission

What data security requirements would be added to utlities?

• require annual reporting that overivews:
  • utility cybersecurity programs
  • staffing numbers
  • describes employee training
  • explains cybersecurity threats that have been experienced

Washington Times | State wants rules to toughen utilities’ cybersecurity

What medical information isn’t covered by HIPAA?genomic, lifestyle, financial, environmental and other information that wearbale devices and meters store

Is all the genomic and lifestyle data HIPAA worthy? Some of it probably should be covered

What do we need to know about geonomic and lifestyle data? We have to think about medical information outside the traditional format. 

Security Privacy & the Law | Cybersecurity 2017 – The Year In Preview: HIPAA Compliance

Senate Business & Commerce interim report offers these recommendations on cybersecurity:

• the voluntary nature of state cybersecurity policies are a problem (i.e. need more requirements with hint, hint: more procurement opportunities)
• require technical risk assessments at state agencies
• USE PRIVATE SECTOR TECHNOLOGIES like cloud storage

A plethora of procurement opportunities abound.

The U.S. Senate Cybersecurity caucus is compromising to move forward with a national commission to investigate the difficulties encryption has created for law enforcement.

Politico Morning Cybersecurity | November 17, 2017

What’s missing from self driving car regulations? Assurances that governmental agencies aren’t trying to gather data.

What type of data could be collected about a self driving car?

• identifying information including:
  • names,
  • phone numbers
  • credit card info
  • usage data
  • real-time and historic geolocation data

The legislative/policy/regulatory buzz word? Privacy.

Tech Crunch | Lyft wants more explicit protection of consumer data from NHTSA on self-driving

Can a business buy a list of breached users from another business for the purpose of notifying the hacked users?

uh, what? Facebook wants to buy a list of hacked users from another comapny so it can don the white hat and tell its members they were hacked.

For your consideration while legislatures consider how to protect consumers whose information has been hacked. Anyone for a prohibition on the sale of the hacked information?

CSO | Security experts divided on ethics of Facebook’s password purchases

+26 House: 

• Valoree Swanson
  • Baylor. Concerned Women of America. Real Estate Broker.
• Shawn Thierry
  • Attorney. Howard Univ. & South TX College of Law. Big Borther Big Sisters.
• Mary Ann Perez
  • U of H. Insurance. Former HCC Trustee.
• Jarvis D. Johnson
  • Former Houston Council Member. Restraunteur & Consultant African Trade. Texas Southern.
• Tom Oliverson
  • Anesthesiologist. Home Schools. Baylor College of Medicine.
• Briscoe Cain
  • U of H. South Texas College of Law. Raised working class. 
• Kevin Roberts
  • Texas Tech. Riased by Grandparents in Amarillo. COO Lanier Lawfirm.
• Barbara Gervin-Hawkins
  • University of Eastern Michigan. Sister of NBA Player George Gervin. Together founded community center and charter school.
• Tomas Uresti
  • Former School Board member. Legal Assistant. Uresti Law Firm.
• Philip Cortez
  • UT Austin. Working on PhD in Educational Administration. Fraternal Order of the Eagles.
• Diana Arevalo
  • Executive Director for an after school affordable music program. Former DNC staff. BBA from UTSA.
• Victoria Neave
  • Attorney. Texas Southern University. Community Service focused on the elderly.
• Lina Ortega
  • UT Austin. Attorney. Helped Created El Paso Co. Code of Ethics. 
• Kyle Biedermann
  • Univ. of South Florida. Small Business Owner. Primary Win touted by Empower Texas.
• Stan Lambert
  • Abilene Christian Univ. SMU. Former Banking Exec. Athletic Director at Abilene Christian. Former School Board Trustee.
• Lynn Stucky (Mr.)
  • Veterinarian.  Kansas State. Former School Board Trustee.
• Mike Lang
  • Grew up on a farm in Illinois. TCU. Retired law enforcmeent officer.
•  Hugh Shine
  • Held the seat 30 years ago. Sam Houston State. Army retired after 30 years of service. Colonel Shine.  MBA Baylor.
• Scott Cosper
  • Former Mayor of Killeen. Former City Council member. Cosper Custom Homes and Construction. Member of the Texas Department of Transportation Policy Board for 16 years
• Gina Hinojosa
  • UT-Austin. George Washington Univ. Attorney. School Board Trustee. 
• Justin Holland
  • City Council Member. Mayor Pro Tem. Realtor.Texas Tech.
• Terry Wilson
  • Combat veteran. Retired from Army after 30 years. Touted by Empower Texas.
• Ernest Bailes
  • Texas A&M. Whitetail deer genetics company founder. Served on an Appraisal Board.
• Jay Dean
  • Former Mayor of Longview. The mayor who paid to stop Ted Nugent from performing a 4th of July concert. LSU.
• Cole Hefner
  • Former Upshur Co. Commissioner. Independent Insurance Agent. Pilot.
• Lance Gooden
  • Will be his 3rd session. UT Austin. Business Development Consultant.

+3 Senate: 

• Dawn Buckingham
  • Volunteer firefighter. UT-Austin. Lake Travis ISD trustee.
• Borris Miles
  • Sam Houston State. Former law enforcement officer. 
• Bryan Hughes
  • UT-Tyler. Baylor School of law. Supported by the Lt. Gov. during the 2016 primary.

Federal legislators will be asked to consider incentivizing businesses to build in cyber security into their products.

3 IoT Questions for House Energy & Commerce about Cybersecurity | Pwnie Express

The EU cyber security laws have experts touting that there will be bigger fines if companies fail to notify customers of data breaches. 

Out-Law.com | Failing to notify known data breach could lead to bigger fine, says expert

Germany has created a mobile Quick Reaction Force to quickly address cyberthreats.

Which cyber threats will the Quick Reaction Force respond to? Cyber attacks on government agencies & critical infrastructure

Will there be cyber threat information sharing between business interests and the state? yes.

Why did they enact this Quick Reaction Force for cybersecurity? To protect Germany’s elections from Russian or Chinese hackers

DW.com | German cabinet approves cyber security strategy

Analytics firms noted that Trump social media numbers among swing voters increased after the leaked Access Hollywood tape.

Other social media analysts say Trump’s social media sentiments were more positive than Clinton’s.

Tech Crunch | Analysis of social media did a better job at predicting Trump’s win than the polls

The flaw in cybersecurity law: Not modernizing the law to address white hat hackers

The  goals of the legislative fixes: 

• legislation more friendly to legitimate research
• by improving relationship improves between white-hat hackers & the owners of the products they investigate

The legislative fixes:

• The research by white hat hackers has to be for security purposes only.
• The exemption covers consumer devices, voting machines, medical devices, but not things like critical infrastructure, airplanes and major hospital equipment.
• The product being investigated by white hat hackers has to have been lawfully acquired.
• The white hat hacker research has to be done in a safe environment so techniques used to hack or otherwise compromise a product are not released in the wild.
• The white hats cannot violate other laws.

CSO Online | Protection of white-hat hackers slow in coming

U.S. military  hackers have penetrated Russia’s electricty grid & telecommunications in repsonse to Russian attempts on U.S. infrastructure.

NBC News | U.S. Govt. Hackers Ready to Hit Back If Russia Tries to Disrupt Election

The sex scandal Senator’s home: Nebraska

The new legislative policies for the Nebraska Legislature:

• “Prohibits senators and their staff from posting information on personal, campaign and commercial social media websites through the state’s secure network or state equipment.”
• Require user passwords
• Require user passwords to be updated annually

Background on Nebraska’s IT protocols:

• No password policy
• No requirement to change passwords
• Senators’ state-issued computers DO NOT require access with log-in credentials

Omaha World Herald | Kintner’s cybersex scandal spurs new technology guidelines for state senators, staff

Which two states have national guard cyberteams monitoring the election? Ohio and Maryland

What’s swing state Ohio doing?

• conducting penetration testing to see if state systems contain vulnerabilities
• monitoring election data systems for irregularities
• From Ohio’s Secretary of State: “Cyberwarfare is a new front for the military, for business and now for elections.”

What’s Maryland’s plan? ​

• Maryland was one of the first states to engage their national guard in cyberdefense.

Politico | Protecting election systems against cyberattack

Apple is poised to enter health care in these 7 ways:

• clinical trial partnership with Beth Israel Deaconess Hospital
• precision medicine initiative with Scripps Translational Science Institute
• partnered with IBM, Johnson & Johnson and Medtronic on cognitive computing platform called Watson Health Cloud
  • offering  tailored data analytics services to clinicians
• bought a health care tech firm to advance interoperability by aggregating health data into a single digital patient record
• build up healthcare credentials with Apple’s HealthKit, ResearchKit and CareKit platforms
• patent application pending for a new wearable device that can accurately measure electrocardiographic information across different areas of the body
• two new health apps for Apple devices — AirStrip and 3D4Medical
  • AirStrip allows doctors to check appointment schedules on an Apple Watch and get feedback on patients’ diagnoses
  • 3D4Medical’s large portfolio of 3D anatomical images, doctors can help patients visualize injuries and other medical conditions.

Regulations will protect the health care data on the device, in transit, and in storage from disclosures and from ransomware.

Health Care Drive | What’s up with Apple in healthcare?

• None of the companies will give users proper notice about changes in their terms
• All of the wristbands collect more data than what is necessary to provide the service
• None of the companies fully explain who they may share user data with
• None of the companies state how long they will retain user data

Tech Crunch | Fitbit, Jawbone, Garmin and Mio fitness bands criticized for privacy failings

Voting machines need a tech upgrade like a 2005 laptop needs an upgrade. Technology changes. Hackers adapt faster than lawmakers.

The hurdle to upgrade voting machines?

• Taxpayers have to foot the bill. 
• Legislatures are going to have vote to fund it
• There will have to a repeat of the 2002 federal funding to upgrade voting equipment

Techwire | Voting Technology Needs an Upgrade, But Who Will Pay for It?

Who identified the public education data security risks? Missouri State Auditor 

Was the auditor acting under a special audit program? The Cyber Aware School audits initiative

What 5 data security risks did the MO auditor identify?

• Data management programs are not fully utilized to ensure senstive data is available to those who need the data but maintains privacy
• Account management. Need policies and procedures for authorizing, reviewing and removing user access
• Security precautions  Need security training for teachers and staff and designated security  administrators
•  Incident response planning.  need a formal breech response plan
• Vendor contracts need data security provisions and contract monitoring of those provisions.

Christian County Headliner News | Auditor Galloway issues report on school data security risks

The agency with new data protection rules: The FCC

The new FCC rules will require broad band and wireless providers to:

• offer 3 tiers of privacy protections: opt-in, opt-out, and inferred
• opt-in will be the standard for this information held by providers:
  • sensitive personal data
  • financial data
  • location
  • social security numbers
  • health or medical information
  • internet browsing or app history
  • message content
  • data belonging to minors.
• opt-out standard for non-sensitive data like email addresses
• providers also have to provide clear, conspicuous and persistent notice about information gathering

Think Progress | Internet users will have more control over their private information, thanks to new FCC rules

New York.

The pinnacle of these regulation is New York Department of Financial Services rule, known as Cybersecurity Requirements for Financial Services Companies. 

The New York rules target financial services companies and their advisors. Lawyers call the NY rules “… a more comprehensive framework for cybersecurity than has been seen in any other U.S. jurisdiction.”

insurance news net | New York Jumps Ahead In Data Security Regs

Texas Congressional representatives push the most cybersecurity legislation.

Leading the pack are McCaul, Ratcliffe, Jackson Lee, and Smith. The Texans filed 42 bills, that accounts for 53% of all the cybersecurity legislation. 

Cyber Scoop | This state is becoming America’s factory for cybersecurity legislation

• U.S. Chamber of Commerce supports cybersecurity czars to reign in regulation
• Any czat should work under this industry developed framework: National Institute of Standards and Technology Cybersecurity Framework
   

Cyber Scoop | U.S. Chamber of Commerce calls for cyber (anti-)regulation czar

To whom does the model insurance-cybersecurity law apply?  To anyone who holds a license, registration or is authorized by a state insurance agency

There’s a revision to the model law, what’s changed?

• No preemption by the model law
• No private causes of action. tort reformers rejoice. 
• No contractual requirements for 3rd party vendors, but 3rd part vendors must be capable of protecting information
• Stronger notification requirements that trigger notification within 3 days of learning that personal information has been taken, removing a requirement that the information be toed to “substantial harm or inconvenience”
• Penalties have been removed and left to state regulators

National Law Review | Insurance Regulators Fine Tuning Cybersecurity Guidance

Your informed intel from August 25, 2016: