- Journal Archives
- Volume 20
- Volume 19
- Volume 18
- Volume 17
- Volume 16
- Volume 15
- Volume 14
- Volume 13
- Volume 12
- Volume 11
- Volume 10
- Volume 9
- Volume 8
- Volume 7
- Volume 6
- Volume 5
- Volume 4
- Volume 3
- Volume 2
- Volume 1
- 2017-2018 Symposium
- 2016-2017 Symposium
- 2015-2016 Symposium
- 2014-2015 Symposium
- 2013-2014 Symposium
- 2012-2013 Symposium
- 2011-2012 Symposium
- 2010-2011 Symposium
- 2009-2010 Symposium
- 2008-2009 Symposium
- 2007-2008 Symposium
As Halloween approaches on October 31, so does the end of National Cyber Security Awareness Month. Unfortunately, to the horror of many consumers nation-wide, October also appears to have been Corporate Cyber Theft Month, with no fewer than four large national corporations reporting data security breaches with the potential to compromise sensitive consumer information.
The first report came when credit house Experian revealed that a data breach compromised the personal information of 15 million people who applied for T-Mobile phone services. Next came online broker Scottrade, which disclosed earlier this month that the information of up to 4.6 million customers had been compromised in a data security breach.
Following Experian and Scottrade, financial services firm E*Trade Financial and publisher Dow Jones both began warning thousands of consumers that an apparent cyber attack campaign compromised significant amounts of personal information. Frighteningly, some of the data stolen in those breaches contained sensitive customer payment information.
Even “The Donald” himself could not escape the reach of hackers mining for customer information. The Trump hotel chain recently disclosed data breaches compromising the customer payment systems of seven Trump hotels.
The specter of identity theft will continue to haunt individuals effected by these corporate data breaches well after their Halloween decorations have been stored away and their stashes of candy depleted.
Fortunately for consumers, American corporations may be forced to start taking the security of sensitive customer data a lot more seriously.
On August 24, 2015, the U.S. Court of Appeals for the Third Circuit released its ruling in Federal Trade Commission v. Wyndham Worldwide Corp., unanimously upholding the Federal Trade Commission’s (FTC) authority to regulate companies’ data security practices under Section 5 of the Federal Trade Commission Act (FTC Act).
The case involved a suit brought by the FTC against the Wyndham hospitality company, alleging that data security failures led to three data breaches at Wyndham hotels in less than two years. According to the complaint, those failures resulted in millions of dollars of fraudulent charges on consumers’ credit and debit cards.
The Third Circuit ruling sends a strong message to corporations who archive customer data electronically, and solidifies much needed federal oversight of corporate cyber security practices. Companies will now be required to implement reasonable and appropriate security measures to protect customer information.
Exactly what types of security measures will qualify as reasonable remains, for the moment, unclear. However, there is no doubt that perceptions of cyber security are changing, and the protection of customer data is finally – to the relief of millions – being treated with the importance it deserves.
Recent Blog Posts
- Guest Post: Virtual Reality as an Agent of Legal Change
- May It Please the Court…and Facebook?
- Unionization Within The Video Game Industry Is A Looming Threat
- Aerial Surveillance and the Fourth Amendment
- Cambridge Analytica & One Professor’s Lesson in Britain’s Data Protection Act
- “Fake News”, Twitter Bots, and the First Amendment
Tagsadvertising antitrust Apple books career celebrities contracts copyright copyright infringement courts creative content criminal law entertainment Facebook FCC film/television financial First Amendment games Google government intellectual property internet JETLaw journalism lawsuits legislation media medicine Monday Morning JETLawg music NFL patents privacy progress publicity rights radio social networking sports Supreme Court of the United States (SCOTUS) technology telecommunications trademarks Twitter U.S. Constitution