Heather McArn Discusses Warnings by NYS DFS of 'Widespread" Data Breach Cybercrime Campaign

February 17, 2021

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.

Read the full article (subscription required)

"NY Regulator Warns of 'Widespread' Data Breach Campaign" was published by Law360, February 16, 2021.

Hinshaw & Culbertson LLP is a U.S.-based law firm with offices nationwide. The firm's national reputation spans the insurance industry, the financial services sector, professional services, and other highly regulated industries. Hinshaw provides holistic legal solutions—from litigation and dispute resolution, and business advisory and transactional services, to regulatory compliance—for clients of all sizes. Visit www.hinshawlaw.com for more information and follow @Hinshaw on LinkedIn and X.