Heather McArn Discusses Warnings by NYS DFS of 'Widespread" Data Breach Cybercrime Campaign
Hinshaw attorney Heather McArn was quoted extensively in Law360 about a recent warning issued to regulated entities, including insurers, by the New York State Department of Financial Services (DFS). The DFS urged insurers to secure customers' non-public data and to promptly report any potential data breaches, warning of an ongoing "widespread cybercrime campaign" by criminals seeking to hack data and use it to illegally obtain funding reserved for COVID-19 relief.
McArn pointed to the "reach and depth" of the DFS Part 500 regulation in allowing the agency to effectively track such data breaches:
"[Part 500's] mandated monitoring, logging and early reporting of incidents, whether successful or not, provides DFS with a meaningful early alert so that they can assess and disseminate helpful warnings and instructions like these to protect the organization and the wider financial services industry."
McArn noted that privacy fraud was a threat increasingly superpowered by cyber criminals, requiring organizations, their systems and their connections to consumers to be constantly monitored and bolstered.
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"NY Regulator Warns of 'Widespread' Data Breach Campaign" was published by Law360, February 16, 2021.