July 16, 2018

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NY Issues Data Breach Report

New York Attorney General, Eric. T. Schneiderman, stated in a recent press release that 9.2 million New Yorkers had their personal data compromised in 2017. Such data compromises were mainly due to large scale data hacks, such as the Equifax and Game Stop hacks. According to the NYAG office’s report, 1,583 data breaches were reported to the NYAG in 2017. This was quadruple the number from 2016. While hacking was the most likely culprit the AG indicated, a large number of breaches resulted from negligence.

In the report, the NYAG’s office laid out several steps it believes would help organizations protect sensitive personal information against unauthorized disclosures. These include conducting diligence about Understand collection, protection and dissemination of sensitive information, creating -and implementing- an information security plan that includes encryption, and acting immediately in the event of a breach.

In the press release, Attorney General Schneiderman advocated for a bill to force Facebook and other social media websites to inform consumers if their personal data has been misused. Attorney General Schneiderman also called on the New York State legislature to pass his SHIELD Act. If passed, the SHIELD Act, would put legal responsibility on companies to adopt “reasonable” administrative, technical and physical safeguards for sensitive data and would trigger more stringent reporting requirements.

Putting in Into Practice: The AG’s recent report provides insight on what the NYAG’s expectations are of companies who suffer a data incident, and how they can prepare for such an event.

Copyright © 2018, Sheppard Mullin Richter & Hampton LLP.

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About this Author

Snehal Desai, attorney, Sheppard Mullin
Attorney

Snehal Desai is an associate in the Intellectual Property Practice Group in the firm's San Francisco office. She is a member of the Privacy and Cybersecurity Team, the Advertising Team and the Technology Transactions Team.

Areas of Practice

Advertising: Snehal advises clients in conducting advertising campaigns, contests and sweepstakes, and brand marketing campaigns. 

Technology and Commercial Transactions: Snehal drafts and negotiates...

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Kari Rollins Intellectual Property Lawyer Sheppard
Partner

Kari M. Rollins is a partner in the Intellectual Property Practice Group in the firm's New York office.

Areas of Practice

Ms. Rollins focuses her practice on privacy and complex commercial litigation matters. She has successfully represented clients in the financial services, audit and accounting, food services, retail, and fashion industries before state and federal courts, as well as in front of state attorneys general, federal regulators, and U.S. and international commercial arbitration forums.

Ms. Rollins serves as a trusted advisor to her clients, bringing a focused, strategic approach to complex litigation and investigation matters alike. Her clients praise her ability to efficiently and effectively manage complex matters with multiple moving pieces, and to concisely and persuasively communicate the core issues of her clients’ cases to judges, regulators, and opposing counsel. These traits have enabled Ms. Rollins to successfully argue critical motions, procure dismissals, and achieve successful resolutions for her clients.

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