Cloud Cyber Risk

Cloud-based storage of an organization’s data attracts cyber hackers like bees to honey. Hackers take time to study and find flaws to breach, extract and sell personal information data. Data Experts Lee Neubecker and John Blair discuss cloud data compliance and legal regulations put in place to protect cloud-based data.

Compliance and Privacy Laws

Cloud cyber risk goes hand in hand when storing data on the Cloud. New compliance and privacy laws have been enacted to protect this cloud-based private information. The State of Illinois has passed a privacy law that specifically addresses how companies gather and store private data.

The Illinois Policy Group, an independent organization that generates public policy, explained that in 2008, Illinois enacted the BIPA, the most stringent law of any state regarding the consent, notice and disclosure procedures private entities must follow when collecting, storing or using people’s biometric information, such as fingerprints, iris scans and face prints. This law forces companies into compliance and makes them more responsible for the collection and storage of private data ultimately, decreasing exposure to cyber risk.

Data Experts Lee Neubecker and John Blair say because of BIPA companies are now more aware of how they secure and store data. They discuss other data compliance and privacy laws such as; California Consumer Privacy Act (CCPA) and Health Insurance Portability and Accountability Act (HIPAA) and how these laws help regulate the healthcare industry and other organizations when storing consumer data, and vendor data in the cloud ultimately protecting the consumer. Watch this video interview to learn more.

View Part 2 of our 3-Part Series on Cloud Data

Part 2 of our 3-Part Series on Cloud Data

Lee Neubecker: Hi I am back again with John Blair. We’re continuing our discussion on cloud security and helping to minimize your cyber risk of having data in the cloud. And today, we’re going to be talking more about some of the compliance and regulatory issues and legal issues that companies face that are having their data and customer data, vendor data in the cloud. So, John, can you tell me a little bit about some of the regulations that impact the healthcare sector specifically?


John Blair: Yeah, the primary one is going to be HIPAA and associated as subsequent acts like HITECH and things like that that augment HIPAA and some of them more clearly defined some of the rules and regulations, primarily Security Rule and Privacy Rule. So those are going to be the ones that primarily come into play, but there are also individual state versions of healthcare acts that you need to abide by and each state has one so you also need to abide by the state regulations as well.

LN: Interesting. So it really, if a company’s operating in multiple states, they have a lot of issues to be looking at.

JB: They have a lot of regulations to be aware of and to be compliant with, yep.

LN: So I know here in Illinois, we have the Illinois Biometric Information Protection Act, otherwise known as BIPA and that’s been creating a lot of stir with Facebook recently had a settlement.

JB: Yep.

LN: And apparently Illinois Residents that have Facebook accounts might be entitled to around $200 per person.

JB: Yep.

LN: If you are in Illinois and have Facebook, so possibly you will be notified.

JB: Yeah, Illinois is the only one.

LN: And do you think it will be through Facebook Messenger?

JB: I do not but Illinois because of that law, Illinois residents are the only ones that are getting anything out of that lawsuit because of that, specifically because of that law.

LN: Got it.

JB: So I don’t know the details of the law but on the surface, it seems to be headed the right direction.

LN: Right, essentially they took the position that your biometric information, unlike your cell phone or your social security number, you can’t change it.

JB: Right.

LN: So if that data becomes compromised such as your facial vector map,

JB: Yeah.

LN: Or your fingerprint or your DNA, that you can’t swap it, it’s part of who you are.

JB: Right and those, you know, we’re finally headed in the right direction where it’s being considered personal.

LN: Yeah.

JB: So which I totally agree with.

LN: We also had just last month the California Consumer Privacy Act, known as CCPA went into effect and that’s got a huge impact on anyone who does business with California residents.

JB: Yeah, that is yet to, I think people were preparing for that prior to that but it’s going forward, I’m sure there’s going to be a lot of repercussions from that because there’s going to be obviously companies and entities that don’t prepare well for that and are going to get caught up in it because it covers, California is a huge state, a lot of people so there’s going to be some lawsuits.

LN: So it’s also been such that if you’re making medical devices for consumers and you have that information, relaying over 3G, 4G networks, we’ve got CPAP machines, pacemakers, all other types Of information. LN: All kinds of monitors

JB: Yep.

LN: And that information going to the cloud, if you’re a California resident and that information gets breached, it could be used by marketers or it could be used In other ways to target people.

JB: Yeah hospitals are going to need to really step up their game with respect to that particular regulation. Hospitals traditionally are a little bit behind technically speaking from an IT point of view, they’re very much on the bleeding edge from a medical device IT point of view but they tend to lag behind because you can’t, it’s hard to afford both

LN: Yeah.

JB: But this is going to, you know, how they allow individuals or access to their networks, what they allow in and what they allow out because that’s the channel these medical devices use is going to be very, very important that they get more control over those things.

LN: So as it relates to healthcare, what are some of the concerns about when a data incident is discovered to actually turn out to be a data breach, what types of reporting and notification requirements are unique to the healthcare sector?

JB: Well, first and foremost, you need to evaluate the situation and then have in conjunction with your legal team and compliance teams, establish whether or not you do officially declare it a breach which means you need to investigate it, you need to involve any vendors that were involved with that data because it may have been the vendor that you’ve contracted with that actually had the breach of the disclosure and not you but since they’re your vendor, you’re also on the hook and that flows all the way up from business associates, which is what those two entities will be up to the covered entity who actually owns the data. So after a thorough investigation and consultation with legal and compliance, a determination needs to be made whether or not you’ve formally declared a breach. And if so, then there’s all kinds of HIPAA standards that come into play about notification to the government, notification to each individual affected by the breach, what needs to take place with respect to that notification, there’s a timeline involved that needs to be met. So there’s all declaring it a breach is a very formal and arduous task.

LN: Yeah, not a pleasant one.

JB: No.

LN: In our next segment on securing data in the cloud, we’re going to be talking more about when a breach is discovered, some of the issues related to reporting the breach and what that can mean to an entity, especially if it’s not handled correctly. So thanks for being on the show again.

JB: Thanks, Lee.

View Part 1 of our 3-Part series on Data Cloud Storage

BIPPA Laws

To learn more about HIPAA

https://www.hhs.gov/hipaa/index.html

Illinois BIPPA policy

https://www.illinoispolicy.org/

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Coronavirus: The Global Impact

Coronavirus is here and leaving death and destruction in its path. Lee Neubecker and Geary Sikich uncover the Coronavirus and its global impact on businesses worldwide and what it means for us here at home in Chicago.

Coronavirus is here and globally impacting our world. Human beings are dying and the toll keeps rising more and more each day. That is the horrible truth of disease! Besides causing human pain and suffering the Coronavirus is also causing disruption and impacting many businesses that are dependant on each other. What does the impact look like? Forensic Expert Lee Neubecker and President of Logical Management Systems Geary Sikich dissect Coronavirus and the huge global rippling impact. For example; Chicago recently canceled the Housewares Show at McCormick Place which typically draws over 60,000 attendees. Everything associated with that conference will feel a significant downturn. ie. hotels, travel, transportation, local food, and beverage. As a result of this global business disruption, there will also be an increase of vulnerability and these experts anticipate an increase in cyber activity. Watch this video interview to learn more about other global industries impacted by the Coronavirus.

Part 1 of our 2-Part Series on Coronavirus

Coronavirus Series: Part 1 is about The Global Impact

Lee Neubecker: I’m here today with Geary Sikich. He’s the president of Logical Management Systems, a cyber and business continuity consulting expert. And I’m Lee Neubecker, the president of Enigma Forensics. We’re a computer forensics firm that provides investigative assistance with matters involving litigation or otherwise investigations. Today we’re going to be talking about the Coronavirus and the global impacts. Thanks, Geary, for being on the show.
Geary Sikich: Thanks, Lee, for having me back.

LN: So, Geary, can you tell everyone what’s happening right now globally, as it relates to the business environment in impacted nations?

GS: Well, the current state of affairs is that Asia is in a situation where Coronavirus continues to kind of expand. It’s expanding at a lesser pace in China, but it’s accelerated in places like South Korea and in Japan. And we’re starting to see it, obviously, move from those Asian countries into the Middle East. Iran has a huge issue with Coronavirus. Italy has another big amount of people that are confirmed cases versus cases under observation. So there’s a significant amount of human impact there. On the business side, this has disrupted a lot of businesses in just about every way you can imagine. So, the shipping industry? Tremendous disruption there. Airline industry? Tremendous disruption there. A lot of flight cancellations and other things. We’re seeing now sporting events, conferences, conventions, all kinds of things that are essentially money-makers in the normal sense, but also dependent on a tremendous chain of support to bring off. Suddenly a conference is canceled, and now you have hotels affected, you have transportation systems affected, you have all the food services affected. This kind of rippling through a lot of areas is causing a very very big concern with, not only businesses but governments. How do you control it and what do you do in this situation?

LN: So, here in Chicago, we have the Chicago Housewares Show canceled. Recently many vendors were coming from other nations where there’s a travel ban. And that impact certainly impacts the workers that are at the hotels, The audio workers.

LN: And whatnot, their hours get cut.

GS: Yeah, the interesting part about that is that when you begin to look They had on the news the other day, They had on the news the other day, was talking about the cancellation of this convention. 60,000 people come. And obviously there’s a lot of work that’s done: Setting up booths, displays, and all the other things that go along with it. Suddenly, he’s out of work for a period of time until the next convention comes in or maybe doesn’t come in. But that ripples through to hotels, food services, restaurants, your taxi cabs, your Ubers, your Lyft, your everything associated with coming to a place for a conference or a convention. So a huge impact. But then you also have So huge impact.

LN: But then you also have and these deliveries are now delayed because of the dockworkers that load up the equipment

GS: Systems.

LN: And these deliveries are now delayed where they have restrictions in place.

GS: And an interesting sidelight to that is that you look at the shipping industry and the amount of material that’s shipped by the containers those ships carry are what they call 20,000 TEU which is a 22-foot equivalent unit. Or 20-foot equivalent unit. Anyway, it’s a size that they have. If you look at that aspect, one of the things that some companies are starting to encounter, and I think you’re going to see more and more of this, is that because of delays in shipping, suddenly the container supply is not as available because your container, Lee, that you shipped, full of your product is sitting out in the ocean waiting to dock at my port, but it can’t come in because it’s quarantined? And now that container is going to sit. But John’s company needs a container to ship his product. Can’t get it because your container’s the one he would’ve normally gotten. So huge impacts in terms of ripple effects in a lot of it. So the average time that the container holds goods, in terms of the number of days is increased markedly. And the existence of the containers largely

LN: So the average time that the container holds goods, so there’s a shortage. Right. And if you think about this in another context, the number of things in the containers, it’s not just computer chips,

GS: Right. Roughly, and I heard a figure that was kind of astounding to me, but about 80% of all the containers are full of perishable foods.

LN: Oh yeah, certainly.

GS: You’ve got your bananas, and oranges and things that we don’t necessarily get in Chicago in the wintertime ’cause we don’t grow them.

LN: Oh yeah, certainly.

GS: You’ve got your bananas because it’s no longer fresh. I’ve got to decontaminate the container. because we don’t grow them, in terms of how these all are impacted. Which gets us into looking at, from a computer security standpoint. These are tracked. Barcoding systems and whatnot. How easy is it for that to get disrupted because somebody decides it’s an opportunity to hack into a network?

LN: Certainly, when systems are constrained and overworked, it’s the likelihood of a failure or an attack compromising the system goes up. So it creates a real opportunity for a hacker to strike and have a magnified impact, So here in Chicago, we have a lot of companies that are impacted by this. We’ve got Boeing, We’ve got United Airlines. Boeing. Major facilities for companies that, while headquartered elsewhere, operate big hubs out of Chicago. Especially in the airline industry.

GS: United Airlines. still, kind of the shipping center for a lot of the country. And if you look at the Chicago area, if you will, you’ve got then industries in Northwest Indiana, you’ve got industries south of Chicago.

LN: Rail.

GS: A huge amount of rail traffic that goes through. The expressway between Indiana and Chicago, 80, 94, is one of the heaviest traveled expressways in the world. You’ve got a number of other businesses that suddenly have the exposure that they hadn’t realized. A huge amount of rail traffic that goes through. What would happen if you took the casinos in the Chicago area and closed them down for two weeks? It’s not just casino workers. It’s not just the amount of money the casino’s going to lose by not being in operation. It’s the day worker. It’s what we call the gig economy. Those people who live paycheck to paycheck that are dependent. So suddenly, they’re without. How are we going to deal with making sure that there’s a, if you will, an equilibrium or a safety net for those entities? One of the things we’re faced with, starting to see now, the City of Chicago’s just announced they’re just putting together a pandemic taskforce. They’ve had a few months watching it unfold in China. much like the rest of the United States, and, if you will, the rest of the world in some respects. Why has it taken this amount of time, and what do we need to be aware of from a private-sector standpoint as to what the public sector is going to do? So from a planning standpoint, this is critical. If you’re a business and you’re putting together a plan, and your plan suddenly conflicts with the City’s plan or the State’s plan, what happens then? How do you deal with that?

LN: Those are all great points. In our next segment, we’ll be continuing our discussion, and we’ll be talking a little bit more about what it’s been like for businesses that are going through some of these extreme measures that are being put in place to help protect and contain the virus from spreading. Thanks for being on the show.

GS: Thanks, Lee.

Other related articles

City of Chicago’s response

https://www.chicago.gov/city/en/depts/cdph/provdrs/health_protection_and_response/news/2020/march/public-health-officials-announce-new-presumptive-positive-case-o.html

For information about how you can prepare from the Center Disease Control.

https://www.cdc.gov/coronavirus/2019-ncov/community/index.html

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Data Breach Response After the Fact

Your email has been frozen and your company website is down. Your IT department has confirmed a data breach. What do you do next? Incident Expert Lee Neubecker and legal expert Kari Rollins offer easy instructions about your next important steps.

It’s a fact! Your IT team confirmed a Data Breach or incident has occurred. What do you do after the fact? Forensic Expert Lee Neubecker and Legal Expert Kari Rollins say don’t panic! First, convene with your incident response team, start to investigate under privilege and contact a 3rd Party forensic expert to help preserve vital information. Watch the rest of this video for further recommendations about data breach response after the fact!

View Part 3 of our 3-Part Series on Data Breach

Part 3 of our 3-Part Series on Data Breach

The Video Transcripts of Part 3 of our 3-Part Series on Data Breach follows

Lee Neubecker: Hi I’m back again with Kari Rollins, and she’s here talking with me today about data breach incident response. The Sedona Conference recommends, how an organization should respond to such incidents. And we’re talking in this third part segment about what to do after an incident has been reported. So Kari, please tell me what the initial issues are that come to mind when you get that phone call from a client that says something happened.

Kari Rollins: Sure, so usually, as we were talking about in a prior segment, you may not know whether you’ve had a breach as defined by law. You are just told by your information’s security team, or an employee or a manager that you’ve had, there’s been an attack. Or there’s been, “I can’t get access to my email,” Or, “My account’s frozen.” So you immediately start to investigate. You want your.. according to your incident response plan which we’ll hopefully have in place, you’ll convene your incident response team; you’ll start to investigate under privilege. You’ll call if you need your outside forensic investigator to help you access it. Help you access what’s happened, right? That the facts in an incident are really, really important because they drive the legal conclusions. Have you had a breach, or have you had an incident that has resulted in the acquisition with just the access to personally protected information? Or are you.. did you have an incident where maybe the systems that house the personal information were accessed, but there’s no evidence that the malware ever made it into the room where the family jewels are hidden and they were taken out. And that’s an important part of understanding whether you actually have a legal obligation to notify regulatory authorities or consumers. So the first step is always convening the team, putting it under privilege, calling your experts, and starting to investigate the important facts. Was this an outside threat, was it an insider threat? I know you’ve had experience a lot with investigating internal threats, which are on the rise these days as I would expect.

LN: And a lot of these incidents, it may be reported as a data breach, and the question is well, how did it happen? And sometimes, it’s not too uncommon that IT staff don’t receive the resources they request, and that data incidents happen as a result of being under-resourced. And in circumstances like that, there’s still a lot of pressure on the people managing IT, to not only run the organization ongoing but to deal with this whole new layer of troubles. So having that team in place beforehand where those relationships are there really helps.

KR: Yes

LN: And the other thing too is, you know, if there is a failure internally, it’s more difficult and less likely that you’re going to get the facts quickly if you’re using the team responsible in some way for the breach to report on what happened. I always recommend that after that initial meeting that preservation of key data occurs, and is offloaded outside the organization. You know, log files, certain key computers, email systems to the extent that they were modified so that there’s the ability to do that analysis. Because when an organization has an incident, it’s quite possible that all the data disappears, and the effort to cover the tracks.

KR: Or it’s not even, it may not be as nefarious as that. It could be that the teams are working so quickly a lot of the remediation plans are to thwart the malware and to remove it. But, in a lot of instances, you need to safely remove it and keep a copy of it, because you need to reverse engineer it. And understand how it got there, understand other signatures it might have; so being thoughtful, and we talk about this being thoughtful about evidence preservation is really critical, especially if you get to the point at which you do have a breach that requires notification. And litigation regulatory inquiry ensues, you will have been expected to preserve that evidence and show the chain of custody. Otherwise, you could have allegations of spoliation leveled against your company.

LN: And I’ve seen circumstances too where a legitimate data incident happens and we’re able to get it quickly and identify the impacted individuals. And sometimes it’s just been a few people; in a circumstance like that, it’s much easier to reach out to those individuals, make things right, and resolve the issue. And be able to report to them what happened. It’s much better than having to publish on your website and report to the attorney general that you had some massive data breach. So, not all data incidences are massive data breaches.

KR: That’s true, some of ’em impact you know, one or two individuals, and you may still have an obligation to notify them under the relevant law. But they don’t have to be the big massive breaches. And again, I think the great thing about the Sedona Conference Guide is that it’s, you know, it helps companies navigate small to big breaches. You know, it’s not intended to be the ultimate authority on the law in this area, because the law is ever-changing. But what it does is it helps companies issue spot from a practical perspective so that they know what laws they need to consult, and why and what issues they need to address, like for example, notifying your insurance carrier. One of the big questions we always get is, Well, we’re the victims, here; the company X is a victim of this cyber attack. Who’s going to pay for it?

LN: Yes.

KR: And so, insurance coverage for cyber incidents has is a really hot button issue these days. And so it’s important for companies to know in advance what their policies say, what the notification requirements are. Even if they just have a sniff of an incident – maybe it’s not a breach. So that the third party and first-party costs are covered, and that you’re working with your insurance carrier, and you’re working with your insurance council to ensure that coverage. And to make sure that you’re getting the right information to your insurance carrier about your forensic teams. Are they approved? What rate are they going to be reimbursed? What type of reporting do you have to do from a cost an expense perspective to your insurance carrier? So.

LN: And, it true that if companies use their own internal IT resources to do the investigation, that the insurance carriers usually won’t pay out their own internal resources?

KR: It really depends. It depends on the policy.

KR: It really depends on the policy. There are, in some instances, some policies would cover the first party staffing costs, so for example, if you had to pay staff overtime to work 24 hours a day to try and investigate, you may be able to claim that. But it really depends on your policy. There’s certain.. there’s certainly reimbursement line items for business disruption and business interruption. Or, you know the loss of business, loss profits line items, as a result of ransomware tax. But again, knowing your policy is a critical step in preparing.

LN: Where do you see the benefits of using an outside forensic investigator as opposed to internal IT to investigate when an incident happens?

KR: You know I think it’s two-fold, one, a lot of internal IT teams are taxed as it is with their day to day obligations. And if an incident is one that is medium-high critical, you want to be able to dedicate the resources to the incident to investigate swiftly, and to ensure that there’s no delay. And so pulling in a third-party forensic expert alleviates some of that burden and stress on the IT teams. And then separately and secondly, it also creates a level of objectivity that is.. that benefits the company in the event. Or in the unfortunate event, someone in the IT group may have made a mistake that caused the vulnerability. There’s less likely that that mistake would be covered up. Or there’s going to be more candor from the third party expert, the to management team say like, “Hey, this issue should have been addressed”. And it wasn’t, and now you know what thwarts may be in the event. You have some litigation down the road and you need to defend. But so I would say really sort of time and devotion of resources where needed, and objectivity.

LN: Great, well thanks a bunch for being on this show; this was great.

KR: Absolutely, thank you.

Part 1 of our 3-Part Series on Data Breach

Part 1 of our 3-Part Series

Part 2 0f our 3-Part Series on Data Breach

Part 2 of our 3-Part Series
Data Breach Incident

To Learn More About Sheppard Mullin / Kari Rollins

https://www.sheppardmullin.com/krollins

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Securing Data in the Cloud

Secure Cloud Data! Large organizations buy cloud services that provide storage on servers and other devices and connect with computer networking equipment throughout the world. So, how are they securing the data? Experts Lee Neubecker and John Blair say start with knowing what data is being stored.

What steps do organizations need to take when securing data in the Cloud?

The Cloud is digital storage that is physically secured and stored on big servers owned by big companies and made accessible through the internet. These big companies are connected with other computer networking equipment throughout the world. Does this sound too big to secure? Experts say there’s no time like today to understand where your data is stored and how it’s secured.

Today on the “The Lee Show”, Forensic Expert, Lee, and his guest John Blair who is cyber governance and information technology expert, explores the complexities of cloud-based security and storage. John suggests starting with obtaining a holistic inventory of your organization’s data and most of all be aware that some employees bring their own applications and use their own personal device to store organizational data. Check out this video on securing data in the cloud to learn more about cloud storage and cyber risk.

Part 1 of our 2-Part Series on the Securing Data in the Cloud

Part 1 in our 2-Part Series on Securing Data in the Cloud

The Video Transcripts on Securing Data in the Cloud follows

Lee Neubecker: Hi, I’m here today with John Blair. John is a cyber governance and information technology expert. He’s on the show here today with me to talk a little bit about securing your data in the cloud. Thanks for being on the show again, John.

John Blair: Hi Lee, good to be back, thank you.

LN: So we’re talking about cloud cyber risk. What do organizations need to be looking at to help secure their data in the cloud?

JB: I think first and foremost, you need to understand where is all the data and how do people get data in and out of their environment? There’s a lot of things typically called Shadow IT, where certain departments or certain users might you know, for example, start sending things to Dropbox to sync data amongst themselves to make it easier for themselves. But they might be syncing confidential information that’s not on Dropbox and the organization has no idea about it. You know, that scenario plays itself out over and over and over again, where there might be departments that actually use applications in the cloud that thus obviously, are processing data as well that the organization might not know about either. So you need to get an inventory of data. Where is it from a holistic point of view?

LN: And today you have the Bring Your Own Cloud, BYOC,

JB: Yes

LN: Many employees are bringing various apps with them that they’re used to using from their prior employers, and they’re wanting to use these apps. Sometimes they’re putting them on their smartphones and whatnot.

JB: And that’s driving a lot of the corporate action towards that. The cloud for first and foremost is a cost-savings for the most part. But what people are not realizing is that along with those savings comes certain responsibilities. And, from a user perspective, you know, people are used to as you said, people are used to certain applications, they’re used to certain things on their phone, or on a tablet or they’re used to working in a certain way with certain applications. And then you get in a corporate environment and those applications or that way of working might not be available. And so people start voicing that, and it becomes, you know, somewhat of a problem for corporate to adapt and keep up.

LN: So organizations, especially healthcare-related organizations, as well as financial services and other organizations that depend on intellectual property have a real risk here, don’t they with people bringing apps?

JB: They have a very big risk. Both of those sectors are heavily regulated. Data needs to be very tightly controlled. Breach notifications in the event that it happens become a very big deal, very public. And if you can’t explain where the date is, and where you know, who has it, then you have a problem.

LN: So isn’t there also risk not only faster dissemination of intellectual property and trade secrets, but what if the information becomes compromised by malware or a hacker to morph the data or destroy the data?

JB: Yeah, your only recourse at that point is to have really, really good backups. Because otherwise, you have no actionable direction to take. If you don’t have a backup of that data, you know, you have no ability to recover. It still might be considered a breach, a lot of times, and certain organizations or certain regulations. So you still might have to report it, even though the data has never left your organization, the fact you’ve lost control of it might be considered a breach. So that might be something you’d have to consider with your legal teams. But it’s not, it’s still a very big deal because you no longer are able to use it.

LN: So don’t you have a risk though, that if your backup is online, that the attacker could compromise your primary source and then your backup drive attached to your server?

JB: Well, hopefully, they haven’t gotten that far. But if generally speaking, your backups are always in the separate physical location, and not necessarily on the network.

LN: So you rotate them?

JB: and they’re separate, you know, media and things like that, but yeah, if you’ve gotten to the point where they’ve corrupted your database, they’ve encrypted your database, and they’ve also encrypted or destroyed your backups, you’re, in a very bad way.

LN: So knowing that hard drives sometimes fail, if you’re using a physical hard drive to write the data to, what do you think most organizations should be doing to ensure they have a certain number of versions that they can restore to?

JB: Well, normally backup systems are version controlled and so you do backups based on frequency. You do daily, you do hourly, you do you know, on the spot, so there point in time, a lot of times where there’s a lot of people, organizations, that can afford it have failover data centers, for example, that are mimicking the primary data center. So there is no loss of processing. but that’s very, very expensive to do. But yeah, you should definitely have you know, off-site storage of data. But those are all historical, and things that are not necessarily online that you can immediately refer to those lesser compromised to your point. LN: So when you’re considering bringing in a cloud provider to your organization, is it an official, non-shadow ware operation? What are some of the questions you ask of your vendors and things that you look for to help secure, ensuring those cloud providers are secure?

JB: Right. First and foremost, do they have some sort of testations with respect to the services you’re going to use for that provider? Cloud providers have hundreds and hundreds of services, not all of them are audited by an independent auditor, not that that guarantees anything, but at least if it’s the services you’re going to use or the applications you’re going to use. or the locations you’re going to use with that cloud provider, then you have something to point to say, you know, we did our due diligence, and they have these SOC 2’s or whatever form it might take. But you have to do something on them to ensure that, because the cloud is half their responsibility and half of yours, and you have to make sure they’re doing their half.

LN: So what other things do you think that organization should look for if they’re using data in the cloud, how to maximize the security of that data?

JB: First and foremost, I think they need to within their own organization, block these drop boxes and the Google drives and all that sort of stuff like that, so that people individually can’t make you know, downloads for example, from the database and then upload it to Dropbox or Google Drive or whatever, and then go home and look at the same documents. You know, from a personal perspective, that’s very convenient, it’s very nice to have to be able to sync and you know, you can use one, one central source of the information, but from a corporate perspective, that isn’t your data. It’s a corporation’s data. And so, you know, the corporation needs to be responsible and know where that data is going, and how to prevent it ideally, from getting there. It’s very easy to drop, you know, to block Dropbox at a network level, you know, but the problem is that there are hundreds of those types of things to block. And so you know, you need to do a lot more care from a corporate perspective internally to make sure that your users aren’t putting data someplace where you lose control of it.

LN: And are there any, any other things that you’d recommend adopting if you’re going to use these cloud platforms to help ensure that hackers don’t get access to user accounts?

JB: That’s an interesting one because as yours been, you know, almost all those user accounts have been hacked at one point or another. And so the only thing protecting me at this point is a password. I think multi factors in you know, bio authentication type of actions are the only thing you can do to improve your chances of those accounts not being used by inappropriate people. Because the accounts themselves are basically public knowledge, you know. Your, you know, your username is public knowledge, the only thing protecting it is a password.

LN: And so, you know, the multi-factor authentication actually addresses and requires that you have to have three factors. Something you know, something you are, or something you have.

JB: Right.

LN: So, for instance, many people know their password. They might have a thumbprint or they might have their cell phone.

JB: Right.

LN: That is something that they have. So you know, having that second factor makes it less likely that someone can simply get the password and get in.

JB: Right, where they send like to your point the phone, they send a code to your phone, you enter the code into the application–

LN: Exactly.

JB: And then you gain access. Until then you’re simply at the network border.

LN: So on our next video, we’re going to be talking a little bit more about, again about the cloud, cyber risk security and specifically we’ll talk about some of the legal and compliance issues that arise. Thanks for being on the show.

JB: Thanks, Lee. My pleasure.

Other related articles about securing data

National Institute of Standards and Technology on Securing Data in the Cloud

https://www.nist.gov/system/files/documents/itl/cloud/SP_500_293_volumeII.pdf

Academia Data Governance Information

https://www.academia.edu/37900938/Information_Governance_Concepts_Strategies_and_Best_Practices.pdf

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Debt Forgiveness with Jacob Meister

“Wipe out court debt!” says Jacob Meister, candidate for the Cook County Clerk of Circuit Court. He has a plan to ease the crushing burden of fines, fees, and forfeitures. Check out this video to learn more about his solutions.

Debt forgiveness is now one of the most popular presidential campaign promises but what does it mean on the local level. What does debt forgiveness mean for the City of Chicago taxpayers?

Enigma Forensics President & CEO Lee Neubecker interviews Jacob Meister, who is running for the office of Cook County Clerk of the Circuit Court. Lee is interested to learn more about what are Jacob’s plans regarding debt forgiveness.

Part 3 of our 4-Part Series on the Cook County Clerk of the Circuit Court, Jacob Meister

Part 3 of our 4-Part Series

Part 3 of our 4-Part Series on Jacob Meister

Lee Neubecker: Hi, I have Jacob Meister back to my show, Jacob thanks for coming.

Jacob Meister: Well, thank you for having me Lee.

LN: Jacob’s running for Cook County Clerk of the court. And we’re going to talk today a little bit about some things that have been trending in the news related to debt forgiveness. From the federal student loan debt, there have been talks about wiping out the debt owned, lots of people are concerned over medical-related debt. But now there’s been some, some calls by one of the candidates running, requesting that we just wipe away the Quartet. And I wanted to get your feedback on what the problem is there, and what do you think the solution is?

JM: Well, for years, I have been an advocate for easing the burden with court fees that are charged to litigants, fines, and forfeitures that go through the clerk’s office. The clerk is required to collect fines, fees, and forfeitures that are implemented usually by statute, or by sometimes by the court rules themselves. But what we see is a tremendous economic cost and social injustice that’s done. So just imagine you’re a single mother who’s been evicted from your apartment or your home. And you in order, you get a summons from the sheriff saying you must appear or you’re going to get a default judgment entered against you. But first, you have to file an appearance and pay a fee. It’s going to be $250 to defend yourself. And if you don’t, you’re going to get defaulted. And this is a crushing burden, you know, single mother, and it can affect that anybody who’s battling an addiction, be it child custody, it could be dealing with a divorce, it could be dealing with any number of things. We need to stop placing a crushing burden on the users of the court systems and make up a system that’s available to everyone.

LN: But who decides what that fee is?

JM: that with that state legislator, and that’s the Supreme Court, and the county board. some of those fees go there too. We have to stop squeezing court users to pay these fees and start paying for it in other ways. But in any event, I have been a supporter of for instance, when people get fines if you have a fine, you know, you would support and post fine and some people can’t pay it and it becomes this burden and you get trapped and sometimes you get imprisoned. Because you can’t pay these fines that you’ve been ordered to by the court. One of the things that we that I worked on in Springfield and we need to expand is allowing people to get credit for community service so that they have if they can’t afford to pay the fines, they have a way that they can provide community service and reduce that fine over time. We have to come up we have to be better about how we handle these things. We know, we have to stop taking away people’s drivers licenses, because they can’t pay their fines because that puts them in a cycle of debt that they can never get out of, because all of a sudden, they can’t drive themselves to work, they lose their jobs.

LN: They can’t get a new job,

JM: they can’t get a new job. Exactly. So we need to ease the burden there. I will continue to work with the folks in Springfield, with the folks in Cook County government, and with the courts. I’ve got very good relations there, And I will work to make sure that social justice is being achieved, and that we’re not putting people in a vicious downward spiral of debt.

LN: So some of the efficiencies you talked about earlier about making the court more efficient. Some of those efficiencies might help to pay for some of this relief on some of the oppressed people that are really being trapped in a cycle.

JM: Absolutely. Absolutely. Absolutely. And that’s the goal is to make sure that our courts are accessible to everyone, that we’re doing justice, and that we’re achieving social justice. We’re not just trapping People in a court system and in burdensome debt.

LN: Well, thanks for being on the show again.

JM: Well, thank you for having me, Lee.

Part 1 of our 4-Part Series on Jacob Meister

Part 2 of our 4-Part Series on Jacob Meister

Part 2 of our 4-Part Series on Jacob Meister, Cook County Clerk of the Circuit Court Candidate

View Jacob Meister’s website

htttp://jacobforclerk.com

To View Internal Related Articles

View Government Debt Forgiveness Programs

https://www.chicago.gov/city/en/depts/fin/supp_info/debt_relief_faqs.html

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Prepare for a Data Breach

Don’t fail to prepare for a data breach! Check out what experts Lee Neubecker and Kari Rollins say are the three strategies to prepare for a data breach.

In the famous words of Benjamin Franklin “By failing to prepare, you are preparing to fail.” Forensic Expert Lee Neubecker and Kari Rollins with Sheppard Mullin agree with our Founding Father and warn that a data breach is inevitable, don’t fail to be prepared!

In her practice, Kari focuses on data privacy, data security and data breach preparedness. Together, they discuss two basic strategies to help you prepare for a data breach; understanding what data you have, where that data resides. Check out our video with transcripts to learn more on how to prepare for a data breach.

Part 2 of our 3-Part Series on Data Breach

The Video Transcripts of How to Prepare for a Data Breach Follows

Lee Neubecker: Hi, I’m back on the show again with Kari Rollins. Thanks for coming back again.

Kari Rollins: Thank you.

LN: We’re continuing our discussion about the Sedona Conference Data Incident Response Guide and some of the best practices of how to prepare for the inevitable data breach and what you should be doing beforehand. So Kari, can you tell me what some of the things are that you advise your clients to do in anticipation of a potential issue?

KR: Sure, and I think planning, in our view, is just as important as the actual response itself and how you investigate. And in the Sedona Response Guide, we’ve pulled together some suggestions for sort of two elements of planning. One is the more technical, understanding what data you have, where that data resides, what your network systems are so that when you do have an incident, and you have to understand what information may have been impacted, to understand whether you have a legal obligation to notify, you have a better understanding and a better map of what those systems are and the information they hold. And a lot of times, using not just counsel and conducting that analysis, but using third party forensic firms to come in and help with that data mapping process is a really important step in getting prepared to understand where are all of the jewels of the company lying within the systems to know what the type of critical impact could be if one of those systems is hit.

LN: And some of the problems I’ve seen is, oftentimes the documents that are distributed and given to legally become outdated, so this is something really that organizations should be periodically updating their network data map and actually using either consultants or tools to help them map out what devices exist on their network.

KR: Right, exactly. And to that point, too, understanding what contracts with those vendors control here. Especially in the event, you have an incident that impacts the system that is managed by a vendor, do you know what information is being controlled by that vendor, and how you all are going to liaise when that incident occurs, who’s going to take control, what the contractual obligations are? Because vendor management is a hot-button issue these days. The FCC itself just came down with a number of guidelines and best practices for vendor management, so being prepared in that sense, knowing where your data is, who your vendors are, who controls it is really important.

LN: Exactly, and I can’t stress enough, it’s important, too, that companies have offline backups of their data because if you have a storage mass go down suddenly, if your company doesn’t have offline documents that describe what the drive geometry for that raid array is, the ability to recover the data becomes compromised and if a hacker gets in and takes out a storage network and the documentation for how to rebuild that storage network is on that drive, that could cause a real problem.

KR: Absolutely.

LN: Do you see that this guide is applicable to companies that are concerned about cryptolocker type malware as well?

KR: Sure, I think this Incident Response Guide can help guide companies through any type of incident, whether it’s a ransomware attack, where their information is being withheld from them, whether for ransom or for other purposes, it could just be useful in investigating the so often seen phishing attacks that seek to attack the email accounts of employees and then further perpetrate other credential harvesting schemes. So it’s useful in the sense that it helps companies prepare for any of those types of attacks. And it does so by helping them with the data mapping, giving them some guidelines on that front. And then also helping them to craft an incident response plan, which I think it’s just as you were talking about, being prepared here with an incident response plan is also the other critical component of preparation and it’s not a one-size-fits-all for the companies. You can’t just, there aren’t these stock-standard off-the-shelf policies that you can then apply because each company has different data systems, and different requirements, and different teams. But this guide provides you with resources and guideposts for how you build that plan that makes sense in the context of your company.

LN: Exactly, and depending on where the company operates, if they operate in Illinois, they might be subject to BIPA, the Illinois Biometric Information Protection Act, which has a whole host of unique requirements. So in our next segment, we’ll be talking more about what should be done after a data incident arises. Just because it’s an incident, does not mean it’s a data breach, but there are certain things you want to do, like have your team in place beforehand. But before we leave, what are your recommendations and what does Sedona say about forming a team to be able to respond in advance of an incident?

KR: I think that is probably one of the most critical elements of an incident response plan is really just knowing who your team is going to be. Who are the individuals that you are going to call when an incident occurs and building that team, it’s important to have the right buy-in? Legal, of course, is extremely important because you want to be able to conduct the investigation under privilege, and in a fashion that gets the facts to your legal counsel in a timely and expedient manner so that you can understand the point at which you have information that suggests you’ve had a breach as defined by law. Because the point at which you learn you’ve had a breach is defined by law as to when your clock starts ticking for notification and that’s in some jurisdictions, that’s a really tight turnaround. So in the incident response plan, in the Sedona Conference Instant Response Guide, we talk about having that team. Having the information security teams, knowing who your third-party experts are going to be if you need third party support to come in and investigate, knowing who your crisis management team from a PR perspective would be. So having all of those individuals listed, with the contact information in the back of your plan so you know who to call, sort of the Ghostbusters, but the privacy busters of an incident, who are you going to call when you get an incident. So I think that’s most important because having the right people mobilized is going to save you time in the end.

LN: It’s important, too, that especially with your forensic experts, you want to make sure you’re working with experienced people that understand the sensitivity around email because as you investigate incidents, your initial impression of what happened or what is going on might change as you learn new information, so it’s important not to begin with the word data breach when you don’t know if it’s a true data breach. Because sometimes, an organization has a security incident but there’s no proof that any data actually exfiltrated or that it was used in any way, so that’s part of at least during that response that we’ll talk about next, those are part of the issues that need to be investigated, but being sensitive to that and making sure that privilege is in place and communications is definitely important.

KR: Yeah, exactly.

LN: Well, thanks and tune in to our next segment where we talk about what to do after the inevitable data breach.

KR: Right.

View Part 1 of our 3-Part Series on Data Breach

Related Articles on How to Prepare for a Data Breach

Prepare for a Data Breach, Secure Your Supply Chain

Learn More About How to Prepare for a Data Breach. Check out Kari Rollins

https://www.sheppardmullin.com/krollins

More About Sedona Conference Data Breach Guide

https://thesedonaconference.org/search/node/data%20breach%20guide

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End of Windows 7

What are some of the potential problems for an organization trying to secure Windows 7? Cyber Security Experts Lee Neubecker and Atahan Bozdag say it’s analogous to owning a home and not maintaining it, eventually something breaks and it’ll cost you a fortune to fix!

Securing Windows 7 Environments

On January 14, 2020, Microsoft announced support for Windows 7 has ended. As reported by Microsoft, “Technical assistance and software updates from Windows Update that help protect your PC are no longer available for the product. Microsoft strongly recommends that you move to Windows 10 to avoid a situation where you need service or support that is no longer available.” It’s official…it’s the end of Windows 7! We have to end our love affair with Windows 7 and move onto Windows 10. What does that mean for the end-user? Well, if you stay on Windows 7, you will deal with constant security threats, and there will be no more updates or support. If you upgrade it’ll cost you approximately $139 for a home computer, $199 for a small to large business and $309 to upgrade a workstation that needs a faster powerful operating system.

Cyber Security & Computer Forensic Expert Lee Neubecker and “Fellow Forensicator” Atahan Bodzdag break down what impact is imposed on cyber security when computers no longer receive service patch updates or support for Windows 7. They discuss the usage of Windows 7 by the Health Care organizations that are resistant to change or have application that have not been ported to work with Windows 10.

Atahan Bodzdag provides an overview of top three items that all organizations dependent on Windows 7 should be undertaking to maintain cyber security resilience.

Window 7 Security Vulnerabilities

The Video Transcript Follows

Lee Neubecker: Hi, I’m here today with Adahan Bozdag. Thank you for being on the show Adahan.

Atahan Bozdag: Thank you for inviting me, Lee.

LN: Atahan is a fellow forensicator and cybersecurity expert. He works within the healthcare sector and works internally to an organization, doing some of the things I do as an expert witness outside an organization. And today we’re going to be talking about Windows 7, the end of the life cycle of Windows 7, and some of the cybersecurity issues relating to organizations that are in Windows 7 and are trying to prevent future data breaches. So, Adahan, could you tell everyone a little bit about what Microsoft did recently as it relates to Windows 7?

AB: Well, as you said, Windows 7 end of life cycle happened. It’s was January 14, 2020. They stop patching Windows 7 environment, so it is vulnerable to any attack after the date. January 14, 2020.

LN: So then when people report their CVEs, detailing vulnerabilities on Windows 7, eventually they’re up there for the hacker world to see. and to exploit because Microsoft’s not patching that operating system.

AB: Very true. It’s a dream come true for the hackers.

LN: Yeah, well, no more data patches means what exactly?

AB: It means that you are more vulnerable to attacks.

LN: So every day the risk of cyber compromise only grows for organizations still on Windows 7.

AB: Very true.

LN: So, what is for the non-technical person out there, could you explain what this is analogous to?

AB: Well, I can give you the house analogy. You buy a house and you don’t do any upgrades. You don’t do any maintenance. Something is going to break. So this is what’s going to happen with Windows 7. Because there’s no more patch, there are no more updates, there’s no more security involved in it. At one point if you still continue using it, you will get breached.

LN: So, it’s kind of like your locks start to fall off the door at a particular time

AB: Exactly, exactly.

LN: And if you consider the contents of a health care provider, to have sensitive data like patient medical records, electronic medical records, protected health care information, or PII, all of that stuff is vulnerable to exfiltration?

AB: Yes, very, yes.

LN: So, why are people still using Windows 7, given this threat?

AB: Well, some applications are not upgraded to work with Windows 10, and what happens. So then a lot of people working in the corporate environment are resistant to change because the applications are not working with Windows 10. So those,

LN: Or they just like the cleanness of Windows 7, relative to Windows 10, which

AB: Yes

LN: It has a lot of bloatware loaded on it if you’re getting the version off the shelf.

AB: True, true.

LN: Who really needs to have all these games on their environment?

AB: Exactly. But at the same time, every healthcare company that, you know, even my company that I’m working for, we have a golden image that we create, which are stripped down from all those games and stuff like that. So we don’t use those. But, to get there, there is always an image needs to be updated in Windows 10.

LN: So what are some of the potential problems for the organization that stays on Windows 7 and just doesn’t get with the program to migrate off?

AB: Well, first thing is, APT.

LN: What’s an APT?

AB: APT is an Advanced Persistent Threat.

LN: That’s like that nation-state, Big Brother lurking on the chips of the computer device, waiting for a moment to attack, right?

AB: They can infiltrate you. They can do nothing, just sit and wait, and look at your data. And we have seen that in many breaches. The time that you found out that the company was breached, they’ve been in the system for more than six, seven months. So they were collecting data slowly by slowly, and at one point they turned the engine on, and then the doomsday attack starts. Suddenly you start losing data. Deletion happens and then, they grab everything out from your system.

LN: “So there’ ve been a lot of nation-states making threats.

AB: Oh, very much so.

LN: This could be a huge opportunity for certain nation-states to get themselves onto hackable systems and merely wait until the opportune time to strike is such that they could magnify the damage.

AB: Exactly.

LN: We have a power outage,

AB: Yes.

LN: And they were to strike at that time, that would probably magnify the damage significantly.

AB: Very, very much. And now you’ve been talking about those in your other videos about these kinds of things. The cyber realm is another way of attacking our national interests. Health care is one of them.

LN: So let’s assume that an APT gets into a health care environment, health care provider’s systems, and they’re able to access electronic medical records, EMR, patient health care information, what might they want to do with that information?

AB: Well, patient records, especially the names, social security numbers, medical records, everything is sellable in the Darkweb.

LN: And it’s worth a lot more than just giving social security numbers.

AB: It is. True. It’s like a single record may go for $35. If you got about 10,000 records, 10,000 records times about $35.

LN: It’s likewise though, that data exfiltrates, and it gets out there in the market, the health care providers are looking at potentially significant financial damages, as well as reputational damage.

AB: Yes, yes. Because when these things happen, suddenly you have to report this either to the government or to the media. And then afterward the penalties will come. And investigations cost a lot of money. Penalties are really severe And doing all of these things, and if you’re still in the Windows 7 environment you’re actually opening yourself to these kinds of attacks.

LN: Yeah so, when these data incidents happen, as you like to call them, what do you see the role of internal IT investigations versus an outside computer forensic firm like myself specializes in data breaches and EMR. What is the typical role and function of the internal versus the outside expert witness?

AB: Internal it’s you know like myself, we do the investigation internally but we would love to hire, I mean we would like to hire an outside investigation, to give unbiased information. Saying that if you go to the legal ways that you will be able to say that hey, I’m not involved with this company I’m doing this…

LN: Sometimes, there’s benefit to having an outside forensic expert that’s independent speak only to the issues that are relevant and not necessarily have a knowledge of who was in IT that got fired or any of that other stuff that isn’t really relevant to the investigation but could create risk for the health care provider.

AB: True. True.

LN: So with regard to reporting obligations, let’s say you find that there was indeed exfiltration of patient data and that information left the organization, what are the reporting obligations?

AB: Well the best way that I can tell right now is if you were at the hhs.gov or consult your attorney it will actually tell you especially the website, will tell you what are the reporting obligations. There are multiple levels. If I go into details over here, it’s not going to last.

LN: Got it. And so, we talked about exfiltration but what can happen if someone gets in and actually deletes patient medical records?

AB: Well, the first thing is in hospital systems that patient who’s going to be either going into surgery or something like that, they will not be able to get, pull out the data.

LN: And so people who have a need for critical life-saving care, might actually die.

AB: Yes.

LN: Or worse yet, if someone were to alter the medical records

AB: That is a threat

LN: And say instead of your left lung having cancer it’s your right lung and you get the wrong lung removed, that’s a real problem

AB: It’s a big problem.

LN: So if you have to say, wrap it up what would be the top three recommendations you make to health care organizations to help defend against the potential future data breach that’s from running Windows 7?

Top 3 Measures to Defend Windows 7

AB:

  1. First is implementing operate plan to leave Windows 7, immediately. That’s a given fact.
  2. Second, isolate Windows 7 legacy into VDIs which we call the Virtual Desktop Environments. Isolate them from the network.
  3. And the third, make sure that your disaster recovery is in place and you do periodic tabletop exercises.

LN: Well thanks so much, that was really informative. I appreciate you coming on the show.

AB: Thank you for inviting me again.

LN: Take care.

Microsoft Windows 7 End of Support

https://support.office.com/en-us/article/Windows-7-end-of-support-and-Office-78f20fab-b57b-44d7-8368-06a8493f3cb9

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View Microsoft website here

https://www.microsoft.com/en-us/

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Jacob Meister’s First 90 Days

Most voters think the Clerk of the Circuit Court of Cook County’s office is ground zero of what’s wrong ethically in Cook County government. Candidate Jacob Meister vows to clean up the office and deliver much needed ethical reform.

Enigma Forensics President & CEO Lee Neubecker interviews Jacob Meister, who is running for the office of Cook County Clerk of the Circuit Court. Lee is interested to learn more about what Jacob Meister plans to do in his first 90 days in office.

View Part 2 of our 4-Part Series on Jacob Meister, Candidate for Cook County Clerk of the Circuit Court

Part 2 of our 4-Part Series on Cook County Clerk of Circuit Court Candidate Jacob Meister

The Video Transcript follows

Lee Neubecker: Hi, I have Jacob Meister, who’s running for Cook County Clerk of the Court. He’s back on my show today. Jacob, thanks for coming back on.

Jacob Meister: Thank you for having me.

LN: So, as a candidate for Cook County Clerk of the Court, which is one of the largest court systems in the U.S., what do you see as your top priority in your first 90 days in terms of fixing a big problem that needs to be addressed?

JM: Well, the Clerk of the Circuit Court of Cook County’s office is ground zero of what’s wrong ethically in Cook County government, you know? The voters in recent years have elected a new Cook County Assessor, Fritz Kaegi, a new mayor, Lori Lightfoot, and have made clear that they demand ethical reform, in government, and the Clerk of the Circuit Court is ground zero of what needs to be fixed. This is an office that for decades and decades has been plagued with political patronage, political workers getting jobs at the public expense in order to do political work. We have to stop that, and in my first months in office, I want to make sure that we are cleaning up the office to make sure that we are delivering taxpayers value for their money and that employees are dedicated first, foremost and exclusively to serving the public interest in the clerk’s office. We cannot get over the operational problems that this office has until we first clean up the ethical issues. So, I want to make sure that the patronage in the office comes to an end. That we comply, there’s currently a federal decree, it’s called the Shakman Decree, that the office is under that requires patronage to hiring, to not be done by patronage. I want to make sure that people are promoted from within, not given these political jobs where employees are beholden to the party machine.

LN: Great, well, thanks for being on the show, Jacob.

JM: Thank you, Lee.

View Part 1 of our 4-Part Series on Jacob Meister

Part 1 of our 4-Part Series on Cook County Clerk of the Circuit Court Candidate Jacob Meister

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Steps Employers Should do Before Using Biometrics

More and more employers are using biometrics. Biometric information and is covered by the Illinois Biometric Information Protection Act or BIPA. Forensic expert Lee Neubecker and Vedder Price Shareholder David Rownd talk about the steps employers need to take so they don’t violate BIPA.

Employers Using Biometrics

What should employers do before collecting biometric information? Biometrics is on the cutting edge of technology and more and more employers are using biometrics in the workplace. Employers use biometrics to activate machinery or computer devices, to track employee time and attendance, and can be used to gain access to specific secured environments. The most common example of employer use of a biometric recognition system is the fingerprint.

Expert Lee Neubecker and Vedder Price Shareholder David Rownd discuss the necessary steps that all employers should do before installing biometrics.

Part 3 of our 3-Part Series on Biometric Data

Part 3 of our 3-Part Series on Biometric Information

The Video Transcript Follows.

Lee Neubecker (LN): Hi, I’m here again with David Rownd. David, thanks for being back on the show.

David Rownd (DR): Oh, thanks for having me again.

LN: So we are continuing our series talking about BIPA, the Illinois Biometric Information Protection Act. And what employers should do, especially those New York employers that have satellite offices in Chicago that track their employees and whatnot and how they should, things they might want to do beforehand so that they don’t get into trouble. With that David, what are some of the concerns and responsibilities employers have under BIPA?

DR: Well, first of all, they have an obligation to notify employees that they are using biometric information. And they have to tell them why they are using biometric information. They have to safeguard the information. They have to have policies in place to safeguard the information. And they are absolutely prohibited from selling the information to third parties.

LN: That would mean if they are using time tracking software they might want to check to see what adaptations those software companies have in terms of how they protect employees’ fingerprints and whatnot.

DR: Absolutely.

LN: And is it a good idea for the employer to actually get the employee to sign a consent form?

DR: Absolutely. In fact, they are required to obtain consent

LN: Okay

DR: before doing this. And this is an important consideration for employers and it should be something that is well thought out and a program put into place that complies with the law before embarking on the use of biometric information.

LN: So employers if you have a trading firm here in New York that has a satellite trading, possibly an option firm, options are big in Chicago. What would you advise them to do just to do a check-up to make sure they are OK?

DR: Well, if you are going to be using your employee’s biometric information in Illinois it would be covered by BIPA. And you need to make sure you are in compliance with the law. And I think it makes sense for your in-house legal team or whatever counsel you rely on to go over what you planned to do and ensure that what you are going to be doing is in compliance with the law.

LN: So I think the intent though of a lot of these tracking features of time tracking software really is to try to protect employees from punching in for, you know, their friend that is running late. But there are other ways that employers can still do that without relying on fingerprints or retina scans.

DR: There are other ways. Smartphones can be used and they can be used without taking any biometric information. And there are other ways of doing it as well. But if you are going to be using biometric information, you certainly should make sure that you are in compliance with BIPA because it’s been a very active, very buried in litigation. There’s been a lot of class actions lately and a lot of companies have had some issues. Most employers would be well advised to make sure they don’t run afoul of the law.

LN: So why are we suddenly hearing so much about BIPA in Illinois? What happened last year that changed things?

DR: Well, there was an Illinois Supreme Court case that really kind of open the floodgates for plaintiffs to be able to sue. Normally in order to bring a lawsuit, you have to be able to show that you suffered some specific harm which is referred to in the law as damages, and that is an element of most civil causes of action. However, under the way, BIPA is written an aggrieved party can bring a private right of action under BIPA. And there’s the Illinois Supreme Court, a case called Rosenbach, last year, basically held that the mere violation of the law with the respect to someone’s biometric information makes that person an aggrieved party. So, the fact that your biometric information has come out of compliance in a program means you’d have the standing to bring a lawsuit. And more importantly, that you could potentially be the lead plaintiff in a class-action lawsuit which ups the ante significantly for employers and exposes them to much more significant liability.

LN: So this could expose any employer using time tracking that has a biometric component in Illinois?

DR: Potentially, yes.

LN: Now are there things that can help protect those employers though from getting in the crosshairs if they are using that software?

DR: Well, I mean, ensuring that you’re in compliance with the law, certainly. Which means making sure you’re getting consent. Making sure that the concent is informed consent and the consent is in full compliance with the requirements of BIPA. Not doing anything that BIPA prohibits such as selling the information to third parties. It sounds pretty obvious but it’s something that’s important to make sure you’re in compliance with the law.

LN: Now there was a case in Illinois involving, it was an athletic gym that had customer information and some of that information was alleged to have gone to outside parties. And I think that case settled, but it certainly not only employers could fall into the snare of BIPA, but consumers as well, people who do business with companies that choose to take their biometric data.

DR: Absolutely

LN: Like possibly even Google and Facebook.

DR: Potentially, yes.

LN: Well, thanks a bunch. In our next segment, we’ll talk a little bit more about what is happening nationally with BIPA. And thanks again for being on the show.

DR: Thanks for having me.

View Part 1 of our 3-Part Series on Biometric Information

Part 1 of our 3-Part Series on Biometric Information

View Part 2 of our 3-Part Series on Biometric Information

Part 2 of our 3-Part Series on Biometric Information

Other Related Articles

View Vedder Price – David Rownd

https://www.vedderprice.com/david-rownd

To learn more about BIPA

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3004&ChapterID=57

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How ZyLAB Can Help Your Company

ZyLAB is a global company that can help an organization who has to deal with various regulatory authorities spanning the globe. They are dual-headquartered in both Washington, D.C. as well as Amsterdam in the Netherlands. If your dealing with GDPR in the EU or CCPA in the US ZyLAB is equipped to provide service. In this video blog Lee Neubecker and ZyLAB’s Jeffrey Wolff discuss what differentiates them from their competitors.

Cyber Forensic Expert Lee Neubecker and ZyLAB’s eDiscovery Director Jeffrey Wolff discusses how ZyLAB Artificial Intelligence (AI) solutions can help your company. ZyLAB is an eDiscovery provider that works with government entities, corporations and law firms to provide data solutions. ZyLAB assists in extracting value from data, and not just metadata, but also document review that is about looking for entity information. ZyLAB is able to search for key people, places, and organizations that are mentioned in documents and/or emails, and quickly drill down to what is going on in your organization.

Watch this important final part of our 3-Part Series on Artificial Intelligence Solutions and eDiscovery. You will learn about what ZyLAB offers that will help your company with document review and ultimately save time and money.

Part 3 of our 3-Part Series Artificial Intelligence (AI) solutions and eDiscovery

The Video Transcript Follows.

Lee Neubecker (LN): Hi, I have Jeff Wolff, back on the show from ZyLAB. Jeff, thanks for coming back on.

Jeff Wolff (JW): Thank you.

LN: He’s their Director of eDiscovery, and I wanted to ask him some questions as it related to what differentiates ZyLAB from other products out on the market. Some of my clients may want to use this type of artificial intelligence program to help get through their review and see what the results are of using AI versus the traditional e-discovery review process, so.

JW: Sure.

LN: Jeff, could you tell us what sets ZyLAB apart from other competitors in the marketplace.

JW: Sure, sure, so first, I think ZyLAB is uniquely positioned in the fact we understand the corporate space quite well, as well as the law firm space, but we got our start in the corporate world, or in information governance. So we are very vested in search and data science, and that’s really where we’ve put a lot of our focus. We have both on-premise solutions, as well as cloud-based, SaaS solutions like every other next-gen provider. But we really push our interface, our user interface and our user experience, as one of the most unique selling points. And that is, that it is not difficult to start using. Anyone, any legal professional can pick up our product in an hour, from start to finish, and understand really how you utilize it. Drag and drop interfaces for getting data into the system, and immediate color-coding and tagging, easy search, and the ability to really visualize your data and understand what’s in the dataset.

LN: Okay. So, what would you say for a company that has to deal with multiple jurisdictions, they’re in Europe, they’re in the US.

JW: Sure.

LN: There are some unique challenges posed by all the various regulations out there, like GDPR.

JW: Right.

LN: Maybe the have operations in China. How could you help a company that has to deal with various regulatory authorities spanning the globe?

JW: Sure, and that’s another advantage that ZyLAB has, actually, we’re actually a global company, so we’re dual-headquartered in Washington, D.C., here in the US, as well as Amsterdam in the Netherlands, in the EU. And as a result, we have cloud operations in both jurisdictions. So our global customers can actually keep US data in the US, and they can keep European Union in the EU, and not worry about that issue. But we also have the expertise, consulting expertise, in both environments, both geographic locations. For example, I’m doing a lot of work now with corporations, not so much focused on directly just on e-discovery, because e-discovery is a bit reactive, you know? Or corporations go through peaks and valleys with e-discovery, the litigation, something they have it, sometimes they don’t. What they constantly have though, are internal investigations, regulatory responses, in the highly regulated corporations. And more and more now, data privacy concerns. So, my European colleagues have been dealing with GDPR for a while, we’re now starting to feel it here in the US, with CCPA, the California Consumer Privacy Act. And there are a number of states on the horizon that are going to California’s examples, so corporations need to be able to find, and classify all the data that they have in their organization that has customer information because if those customers request it and they can’t provide it, they’re financially in a lot of trouble.

LN: Do you think that the regulations coming down on companies are going to fundamentally change how companies chose to communicate with their vendors, suppliers, and own employees?

JW: Absolutely. If you look at all the recent data breach situations, it’s typically not the organization that has the problem, and I won’t mention any of the large companies that have recently had data breaches, but it’s typically not the original company that had the issue, it’s one of their suppliers, or one of their vendors that had accesses to the database, and wasn’t protecting it properly, and that’s how the trouble began.

LN: Yeah.

JW: Same thing with data privacy.

LN: The supply chain certainly is a huge point of vulnerability for all types of organizations. The governments, the military.

JW: Yep.

LN: and even corporations.

JW: Yes.

LN: So what do you see happening over the next few years with the adoption of AI platforms?

JW: I think the e-discovery market is going to fundamentally change. There’s still always going to be a need for discovery within corporations and law firms, but what you do you with the data is going to become much more important, so it’s going to be about how you can extract value from the data, not just metadata, which we’ve always been able to do for years now, but now more about looking for entity information. People, place, organizations that are mentioned in documents and emails, and collaborative environments, and being able to visualize those, and quickly drill down to what was going on in your organization. You know, if you got people that are going to the dentist three times a week, they’re not doing to the dentist, they’re doing something else, They’re just writing about going to the dentist.

LN: Yeah.

JW: Software like ours that can identify those references in documents are going to be crucial to the success of organizations.

LN: That’s great. So it seems that there’s continued e-discovery service provider consolidation out there.

JW: Mhmm.

LN: The companies that are using tools that are more of a channel partner tool to resell.

JW: Yes.

LN: But as those companies consolidate, do you think that there’s going to be a movement away from those providers where, the company, the firms, directly do their own e-discovery?

JW: Oh, yes. Yeah, very much so. We’ve been seeing that over the last few years. A lot of companies, even small companies that tend to have, in the past, just used outside vendors for e-discovery, are now deciding that they prefer to control, not just the cost, but also their data. They don’t want their data outside of the organization for reasons we’ve already talked about. So they’re purchasing in-house tools that they can use themselves, and then they can invite outside counsel in to make use of, that way they control their costs, they control the efficiency, and they control the data.

LN: Well, this has been great. Thanks a bunch for being on the show.

JW: Thank you again.

LN: Take care.

JW: Bye-bye.

Part 1 of our 3-Part Series on Artificial Intelligence

Part 2 of our 3-Part Series on Artificial Intelligence

View Other Related Articles

View ZyLAB website

https://www.zylab.com/en/company

Learn More About GDPR and the European Union

https://gdpr-info.eu/

Learn More About CCPA the California Consumer Privacy Act

https://oag.ca.gov/privacy/ccpa

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