908-679-5011
Security Lessons From the AT&T Data Breach
Private information belonging to nearly 73 million people was recently discovered for sale on the dark web. They all had one very important aspect in common—they were all customers of AT&T, one of the largest telecommunications companies in the United States. Exposed data included personal identification numbers (PIN) and Social Security numbers, significantly increasing the risk of identity theft and other fraudulent activities for current and previous affected customers.
The magnitude of the far-reaching breach triggers crucial concerns regarding the importance of robust cybersecurity measures for New Jersey businesses. Though AT&T reacted quickly, deploying immediate measures to notify customers and initiate password resets, the theft underscores the critical need for vigilance and proactive cybersecurity measures.
New Jersey business owners need to understand the potential ramifications of data breaches and take proactive steps toward safeguarding sensitive company and customer data. Implementing proactive and preventative cybersecurity measures significantly deters the majority of cyber threats, reduces the risk of data breaches, and is far less expensive than the staggering financial aftermath of a cyber-attack and data breach.
How Can a Lawyer Help Protect Your Business’s Cybersecurity?
Data privacy lawyers are critical in helping businesses safeguard data and sensitive information and protect against cyber threats in the following ways:
- Conduct risk assessments to evaluate your business’s security infrastructure’s strengths and weaknesses, identify areas of vulnerability or concern, and provide guidance on methods of mitigating risks.
- Develop comprehensive security policies and procedures addressing specific threats in alignment with applicable laws and regulations related to data protection, encryption, secure networks, and employee training to minimize the risk of data breaches, unauthorized access, and other cyber incidents.
- Conduct investigations following a cyber incident or data breach to help identify the cause, responsible parties, and the extent of the breach or damage, often in conjunction with technical officers, digital forensic experts, and law enforcement agencies for recommendations on preventing future breaches.
- Ensure compliance with current and evolving national and international cybersecurity and data privacy laws and regulations and provide legal guidance on notification requirements, international data transfers, privacy impact assessments, and regulatory compliance audits.
- Provide guidance regarding security management, system and network safety, anticipate and stop cyber threats and misconduct, and help clients navigate the legal complexities of data privacy and cybersecurity laws.
- Represent clients in court in the event of privacy disputes or cyber misconduct, including privacy invasion, data breaches, contracts, consumer fraud, statutory claims, or mishandling of sensitive information.
What Is Cyber Insurance?
Businesses face more than the physical risks of property damage and injuries. Today’s businesses are also vulnerable to technology-based risks, from data breaches to hacking. Data breach insurance helps businesses prepare for, respond to, and recover from data breaches to safeguard the personally identifiable information (PII) and personal health information (PHI) hackers typically target and sell.
If your business regularly collects and stores private identification and personal or health information of customers or patients, cyber insurance coverage can also help your business in the event of:
- Computer viruses that expose private and sensitive information.
- Customer or patient lawsuits following a breach and theft of PII or PHI.
- Public relations expenses for protecting your business’ reputation following a data breach.
Additionally, your business may benefit from data breach insurance to help you respond in the event of a breach, theft, or loss of private customer information through internal or external hacking. Data breach coverage can help your business obtain funds to:
- Notify affected clientele or employees.
- Hire public relations specialists.
- Provide credit monitoring services to affected clients.
As a business owner, you should also consider additional coverage for business income and expenses if a breach causes a shutdown, prior acts coverage to help cover claims related to breaches before the policy’s effective date, and extortion coverage if the business’ data is stolen for ransom.
Large businesses should consider cyber liability insurance, which covers financial losses due to cyberattacks and technology risks, such as:
- Legal services to meet state and federal regulations.
- Expenses for notifying affected customers.
- Paid extortion in ransomware attacks to recover locked files.
- Lost income from a network outage.
- Customer and employee lawsuits.
- State and federal regulatory fines.
Our New Jersey Insurance Lawyers at Herold Law, P.A. Can Help Your Business Protect Itself Against Cyberattacks
A data breach of customer or employee personal or health information can have devastating consequences for businesses of all sizes. To help protect your data and ensure your company’s compliance, call our experienced New Jersey insurance lawyers at Herold Law, P.A. at 908-679-5011 or contact us online to arrange a consultation. Located in Warren, New Jersey, we serve clients in Somerville, Morristown, and throughout the state.
