Many Americans are becoming all too familiar with the news that another large business has been the victim of a cyber attack. The most recent victims were two prominent, white-collar law firms based in New York City: Cravath Swaine & Moore LLP and Weil Gotshal & Manges LLP. Some news outlets have even reported that federal investigators are attempting to determine whether these attacks were intended to steal information for insider trading. Whether that’s indeed the case, or if the attacks were simply a generic attempt to obtain sensitive information, businesses should pay attention.
As we’ve previously highlighted, the threat of cyber attacks is only increasing and no business or industry is off-limits. Whether its large retailers, financial institutions, or law firms, hackers will continue to search out sensitive information like social security numbers, medical information, and credit card data to use for their own gain. Unfortunately, this threat is now a reality and businesses across the State of California and the country need to become familiar with the disclosure requirements of their state should a breach occur. If you’ve been the unfortunate victim of a breach, you should contact your business attorney as soon as possible to understand your disclosure obligations, as each state is different and different licenses (e.g., law licenses, medical licenses, etc.) may impose more rigorous requirements.
L. Sue Loftin is the Founder and Managing Shareholder of The Loftin Firm. For questions relating to this blog or any other California real estate, corporate governance, land use, or estate planning matter, contact Ms. Loftin at 760-814-9649.