Data Breach
In today’s digital world, most Americans leave long electronic trails of private information wherever they go. But too often, that data is compromised. When they shop—whether online or at brick and mortar stores—retailers gain access to their credit card numbers. Medical institutions maintain patient records, which are increasingly electronic. Corporations store copious customer lists and employee Social Security numbers. These types of data frequently get loose. Hackers gain entry to improperly protected networks, thieves steal employee laptops or disgruntled workers pilfer company information.
“More and more people are putting their data in electronic form,” says Deirdre Mulligan, the faculty director at the Berkeley Center for Law and Technology. “[This] means the number of instances where we might have a breach is going up.”
On the following pages, InsideCounsel takes a look at fallout from some major data breaches, recent legislative and regulatory developments in data privacy law and ways to prevent a data breach before it’s too late.
Data Disasters
A “global cyber fraud operation” sounds like something straight out of a James Bond movie. But when cyber crooks recently infiltrated Heartland Payment Systems’ processing system and accessed potentially tens of millions of credit card numbers, company executives learned that type of criminal activity is very real.
In January, MasterCard and Visa notified the credit card processing company that suspicious activity occurred during 2008. Heartland launched a forensic investigation with help from the U.S. Secret Service. They found malicious software spying on transactions and recording credit card information as it passed through the processor’s network.
While Heartland is still trying to determine how many records were compromised, some speculate this is the largest data breach incident ever. A class action lawsuit filed in New Jersey Jan. 27 seeks to recover the cost of replacing credit cards and reimburse
“More and more people are putting their data in electronic form,” says Deirdre Mulligan, the faculty director at the Berkeley Center for Law and Technology. “[This] means the number of instances where we might have a breach is going up.”
On the following pages, InsideCounsel takes a look at fallout from some major data breaches, recent legislative and regulatory developments in data privacy law and ways to prevent a data breach before it’s too late.
Data Disasters
A “global cyber fraud operation” sounds like something straight out of a James Bond movie. But when cyber crooks recently infiltrated Heartland Payment Systems’ processing system and accessed potentially tens of millions of credit card numbers, company executives learned that type of criminal activity is very real.
In January, MasterCard and Visa notified the credit card processing company that suspicious activity occurred during 2008. Heartland launched a forensic investigation with help from the U.S. Secret Service. They found malicious software spying on transactions and recording credit card information as it passed through the processor’s network.
While Heartland is still trying to determine how many records were compromised, some speculate this is the largest data breach incident ever. A class action lawsuit filed in New Jersey Jan. 27 seeks to recover the cost of replacing credit cards and reimburse