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Current Status of US State Privacy Law Deluge: It’s 2024, Do You Know Where Your Privacy Program’s At?

As we begin the new year, many are wondering whether the growing list of US state privacy laws apply to them, and if so, what steps they should take to address them. For companies that gather information from consumers, especially those that offer loyalty programs, collect sensitive information, or have cybersecurity risks, these laws may be top of mind. Even for others, these may be laws that are of concern. As you prepare your new year’s resolutions -or how you will execute on them- having a centralized list of what the laws require might be helpful. So, a quick recap:

States With Laws: There are five state laws in effect: California, Virginia, Colorado, Connecticut and Utah. Four more go into effect this year: Florida, Oregon, and Texas (July 1) and Montana (October 1). The remainder go into effect either in 2025 (Delaware and Iowa (January 1) and Tennessee (July 1). Finally, Indiana is set to go into effect January 1, 2026.
Applicability: Just because you operate in these jurisdictions or collect information from those states’ residents doesn’t mean that the laws necessarily apply to your organization. For many, there are either a number of individuals and/or revenue threshold that apply. On a related front, companies will want to keep in mind the various exceptions that might apply. For example, in some states health care or financial services entities might be exempt from the state laws. And in most, the laws’ obligations are limited to the treatment of consumer information (as opposed to employee information).
Notice: If the laws do apply, then companies will need to keep in mind the laws’ notice obligations. Most stringent in this regard may be California and Colorado, however don’t overlook the obligations that exist in other states.
Rights and Choices: Companies subject to these laws will need to provide consumers with “rights” (access, deletion, correction). The type of rights and process for providing them varies slightly on a state-by-state basis. On a related front, these laws require giving consumers choices beyond those that exist under other privacy laws (CAN-SPAM’s opt-out obligation for emails, for example). This includes choices around information targeted advertising, information sale, sensitive information, and profiling. The laws also place specific obligations on companies that operate certain types of loyalty programs (that might be viewed as financial incentives).
Record Keeping: The laws contain some record keeping requirements that companies will want to keep in mind. These include records of rights requests and in some circumstances, data protection assessment records. This latter for companies engaged in specific activities like selling data.
Vendor Contracts: Those that engage third parties to collect personal information on their behalf, or share personal information with third parties, will need to keep in mind the states’ contract requirements. States that have these obligations include not just California, but others like Connecticut, Utah and Virginia.

Putting It Into Practice: As we begin the new year and set our year’s resolutions, now may be a good time to add projects around state privacy law compliance. After you have determined whether or not your company is engaging in activity that brings these laws into scope, you will want to think about how you will comply with their requirements. From notice and choice to working with third parties, there are many practical items to keep in mind for your privacy programs in 2024.

Exploring the Future of Information Governance: Key Predictions for 2024

Information governance has evolved rapidly, with technology driving the pace of change. Looking ahead to 2024, we anticipate technology playing an even larger role in data management and protection. In this blog post, we’ll delve into the key predictions for information governance in 2024 and how they’ll impact businesses of all sizes.

Embracing AI and Automation: Artificial intelligence and automation are revolutionizing industries, bringing about significant changes in information governance practices. Over the next few years, it is anticipated that an increasing number of companies will harness the power of AI and automation to drive efficient data analysis, classification, and management. This transformative approach will not only enhance risk identification and compliance but also streamline workflows and alleviate administrative burdens, leading to improved overall operational efficiency and effectiveness. As organizations adapt and embrace these technological advancements, they will be better equipped to navigate the evolving landscape of data governance and stay ahead in an increasingly competitive business environment.
Prioritizing Data Privacy and Security: In recent years, data breaches and cyber-attacks have significantly increased concerns regarding the usage and protection of personal data. As we look ahead to 2024, the importance of data privacy and security will be paramount. This heightened emphasis is driven by regulatory measures such as the California Consumer Privacy Act (CCPA) and the European Union’s General Data Protection Regulation (GDPR). These regulations necessitate that businesses take proactive measures to protect sensitive data and provide transparency in their data practices. By doing so, businesses can instill trust in their customers and ensure the responsible handling of personal information.
Fostering Collaboration Across Departments: In today’s rapidly evolving digital landscape, information governance has become a collective responsibility. Looking ahead to 2024, we can anticipate a significant shift towards closer collaboration between the legal, compliance, risk management, and IT departments. This collaborative effort aims to ensure comprehensive data management and robust protection practices across the entire organization. By adopting a holistic approach and providing cross-functional training, companies can empower their workforce to navigate the complexities of information governance with confidence, enabling them to make informed decisions and mitigate potential risks effectively. Embracing this collaborative mindset will be crucial for organizations to adapt and thrive in an increasingly data-driven world.
Exploring Blockchain Technology: Blockchain technology, with its decentralized and immutable nature, has the tremendous potential to revolutionize information governance across industries. By 2024, as businesses continue to recognize the benefits, we can expect a significant increase in the adoption of blockchain for secure and transparent transaction ledgers. This transformative technology not only enhances data integrity but also mitigates the risks of tampering, ensuring trust and accountability in the digital age. With its ability to provide a robust and reliable framework for data management, blockchain is poised to reshape the way we handle and secure information, paving the way for a more efficient and trustworthy future.
Prioritizing Data Ethics: As data-driven decision-making becomes increasingly crucial in the business landscape, the importance of ethical data usage cannot be overstated. In the year 2024, businesses will place even greater emphasis on data ethics, recognizing the need to establish clear guidelines and protocols to navigate potential ethical dilemmas that may arise. To ensure responsible and ethical data practices, organizations will invest in enhancing data literacy among their workforce, prioritizing education and training initiatives. Additionally, there will be a growing focus on transparency in data collection and usage, with businesses striving to build trust and maintain the privacy of individuals while harnessing the power of data for informed decision-making.

The future of information governance will be shaped by technology, regulations, and ethical considerations. Businesses that adapt to these changes will thrive in a data-driven world. By investing in AI and automation, prioritizing data privacy and security, fostering collaboration, exploring blockchain technology, and upholding data ethics, companies can prepare for the challenges and opportunities of 2024 and beyond.

Jim Merrifield, Robinson+Cole’s Director of Information Governance & Business Intake, contributed to this report.

5 Trends to Watch: 2024 Emerging Technology

Increased Adoption of Generative AI and Push to Minimize Algorithmic Biases – Generative AI took center stage in 2023 and popularity of this technology will continue to grow. The importance behind the art of crafting nuanced and effective prompts will heighten, and there will be greater adoption across a wider variety of industries. There should be advancements in algorithms, increasing accessibility through more user-friendly platforms. These can lead to increased focus on minimizing algorithmic biases and the establishment of guardrails governing AI policies. Of course, a keen awareness of the ethical considerations and policy frameworks will help guide generative AI’s responsible use.
Convergence of AR/VR and AI May Result in “AR/VR on steroids” The fusion of Augmented Reality (AR) and Virtual Reality (VR) technologies with AI unlocks a new era of customization and promises enhanced immersive experiences, blurring the lines between the digital and physical worlds. We expect to see further refining and personalizing of AR/VR to redefine gaming, education, and healthcare, along with various industrial applications.
EV/Battery Companies Charge into Greener Future. With new technologies and chemistries, advancements in battery efficiency, energy density, and sustainability can move the adoption of electric vehicles (EVs) to new heights. Decreasing prices for battery metals canbatter help make EVs more competitive with traditional vehicles. AI may providenew opportunities in optimizing EV performance and help solve challenges in battery development, reliability, and safety.
“Rosie the Robot” is Closer than You Think. With advancements in machine learning algorithms, sensor technologies, and integration of AI, the intelligence and adaptability of robotics should continue to grow. Large language models (LLMs) will likely encourage effective human-robot collaboration, and even non-technical users will find it easy to employ robotics to accomplish a task. Robotics is developing into a field where machines can learn, make decisions, and work in unison with people. It is no longer limited to monotonous activities and repetitive tasks.
Unified Defense in Battle Against Cyber-Attacks. Digital threats are expected to only increase in 2024, including more sophisticated AI-powered attacks. As the international battle against hackers wages on, threat detection, response, and mitigation will play a crucial role in staying ahead of rapidly evolving cyber-attacks. As risks to national security and economic growth, there should be increased collaboration between industries and governments to establish standardized cybersecurity frameworks to protect data and privacy.

Under the GDPR, Are Companies that Utilize Personal Information to Train Artificial Intelligence (AI) Controllers or Processors?

The EU’s General Data Protection Regulation (GDPR) applies to two types of entities – “controllers” and “processors.”

A “controller” refers to an entity that “determines the purposes and means” of how personal information will be processed.[1] Determining the “means” of processing refers to deciding “how” information will be processed.[2] That does not necessitate, however, that a controller makes every decision with respect to information processing. The European Data Protection Board (EDPB) distinguishes between “essential means” and “non-essential means.[3] “Essential means” refers to those processing decisions that are closely linked to the purpose and the scope of processing and, therefore, are considered “traditionally and inherently reserved to the controller.”[4] “Non-essential means” refers to more practical aspects of implementing a processing activity that may be left to third parties – such as processors.[5]

A “processor” refers to a company (or a person such as an independent contractor) that “processes personal data on behalf of [a] controller.”[6]

Data typically is needed to train and fine-tune modern artificial intelligence models. They use data – including personal information – in order to recognize patterns and predict results.

Whether an organization that utilizes personal information to train an artificial intelligence engine is a controller or a processor depends on the degree to which the organization determines the purpose for which the data will be used and the essential means of processing. The following chart discusses these variables in the context of training AI:

The following chart discusses these variables in the context of training AI:

Function	Activities Indicative of a Controller	Activities Indicative of a Processor
Purpose of processing
Why the AI is being trained.	If an organization makes its own decision to utilize personal information to train an AI, then the organization will likely be considered a “controller.”	If an organization is using personal information provided by a third party to train an AI, and is doing so at the direction of the third party, then the organization may be considered a processor.
Essential means
Data types used in training.	If an organization selects which data fields will be used to train an AI, the organization will likely be considered a “controller.”	If an organization is instructed by a third party to utilize particular data types to train an AI, the organization may be a processor.
Duration personal information is held within the training engine	If an organization determines how long the AI can retain training data, it will likely be considered a “controller.”	If an organization is instructed by a third party to use data to train an AI, and does not control how long the AI may access the training data, the organization may be a processor.
Recipients of the personal information	If an organization determines which third parties may access the training data that is provided to the AI, that organization will likely be considered a “controller.”	If an organization is instructed by a third party to use data to train an AI, but does not control who will be able to access the AI (and the training data to which the AI has access), the organization may be a processor.
Individuals whose information is included	If an organization is selecting whose personal information will be used as part of training an AI, the organization will likely be considered a “controller.”	If an organization is being instructed by a third party to utilize particular individuals’ data to train an AI, the organization may be a processor.

[1] GDPR, Article 4(7).

[2] EDPB, Guidelines 07/2020 on the concepts of controller and processor in the GDPR, Version 1, adopted 2 Sept. 2020, at ¶ 33.

[3] EDPB, Guidelines 07/2020 on the concepts of controller and processor in the GDPR, Version 1, adopted 2 Sept. 2020, at ¶ 38.

[4] EDPB, Guidelines 07/2020 on the concepts of controller and processor in the GDPR, Version 1, adopted 2 Sept. 2020, at ¶ 38.

[5] EDPB, Guidelines 07/2020 on the concepts of controller and processor in the GDPR, Version 1, adopted 2 Sept. 2020, at ¶ 38.

[6] GDPR, Article 4(8).

For more Privacy Legal News, click here to visit the National Law Review.

How a Zero-Day Flaw in MOVEit Led to a Global Ransomware Attack

In an era where our lives are ever more intertwined with technology, the security of digital platforms is a matter of national concern. A recent large-scale cyberattack affecting several U.S. federal agencies and numerous other commercial organizations emphasizes the criticality of robust cybersecurity measures.

The Intrusion

On June 7, 2023, the Cybersecurity and Infrastructure Security Agency (CISA) identified an exploit by “Threat Actor 505” (TA505), namely, a previously unidentified (zero-day) vulnerability in a data transfer software called MOVEit. MOVEit is a file transfer software used by a broad range of companies to securely transfer files between organizations. Darin Bielby, the managing director at Cypfer, explained that the number of affected companies could be in the thousands: “The Cl0p ransomware group has become adept at compromising file transfer tools. The latest being MOVEit on the heels of past incidents at GoAnywhere. Upwards of 3000 companies could be affected. Cypfer has already been engaged by many companies to assist with threat actor negotiations and recovery.”

CISA, along with the FBI, advised that “[d]ue to the speed and ease TA505 has exploited this vulnerability, and based on their past campaigns, FBI and CISA expect to see widespread exploitation of unpatched software services in both private and public networks.”

Although CISA did not comment on the perpetrator behind the attack, there are suspicions about a Russian-speaking ransomware group known as Cl0p. Much like in the SolarWinds case, they ingeniously exploited vulnerabilities in widely utilized software, managing to infiltrate an array of networks.

Wider Implications

The Department of Energy was among the many federal agencies compromised, with records from two of its entities being affected. A spokesperson for the department confirmed they “took immediate steps” to alleviate the impact and notified Congress, law enforcement, CISA, and the affected entities.

This attack has ramifications beyond federal agencies. Johns Hopkins University’s health system reported a possible breach of sensitive personal and financial information, including health billing records. Georgia’s statewide university system is investigating the scope and severity of the hack affecting them.

Internationally, the likes of BBC, British Airways, and Shell have also been victims of this hacking campaign. This highlights the global nature of cyber threats and the necessity of international collaboration in cybersecurity.

The group claimed credit for some of the hacks in a hacking campaign that began two weeks ago. Interestingly, Cl0p took an unusual step, stating that they erased the data from government entities and have “no interest in exposing such information.” Instead, their primary focus remains extorting victims for financial gains.

Still, although every file transfer service based on MOVEit could have been affected, that does not mean that every file transfer service based on MOVEit was affected. Threat actors exploiting the vulnerability would likely have had to independently target each file transfer service that employs the MOVEit platform. Thus, companies should determine whether their secure file transfer services rely on the MOVEit platform and whether any indicators exist that a threat actor exploited the vulnerability.

A Flaw Too Many

The attackers exploited a zero-day vulnerability that likely exposed the data that companies uploaded to MOVEit servers for seemingly secure transfers. This highlights how a single software vulnerability can have far-reaching consequences if manipulated by adept criminals. Progress, the U.S. firm that owns MOVEit, has urged users to update their software and issued security advice.

Notification Requirements

This exploitation likely creates notification requirements for the myriad affected companies under the various state data breach notification laws and some industry-specific regulations. Companies that own consumer data and share that data with service providers are not absolved of notification requirements merely because the breach occurred in the service provider’s environment. Organizations should engage counsel to determine whether their notification requirements are triggered.

A Call to Action

This cyberattack serves as a reminder of the sophistication and evolution of cyber threats. Organizations using the MOVEit software should analyze whether this vulnerability has affected any of their or their vendors’ operations.

With the increasing dependency on digital platforms, cybersecurity is no longer an option but a necessity in a world where the next cyberattack is not a matter of “if” but “when;” it’s time for a proactive approach to securing our digital realms. Organizations across sectors must prioritize cybersecurity. This involves staying updated with the latest security patches and ensuring adequate protective measures and response plans are in place.

For cybersecurity legal news, click here to visit the National Law Review.

Montana Passes 9th Comprehensive Consumer Privacy Law in the U.S.

On May 19, 2023, Montana’s Governor signed Senate Bill 384, the Consumer Data Privacy Act. Montana joins California, Colorado, Connecticut, Indiana, Iowa, Tennessee, Utah, and Virginia in enacting a comprehensive consumer privacy law. The law is scheduled to take effect on October 1, 2024.

When does the law apply?

The law applies to a person who conducts business in the state of Montana and:

Controls or processes the personal data of not less than 50,000 consumers (defined as Montana residents), excluding data controlled or processed solely to complete a payment transaction.
Controls and processes the personal data of not less than 25,000 consumers and derive more than 25% of gross revenue from the sale of personal data.

Hereafter these covered persons are referred to as controllers.

The following entities are exempt from coverage under the law:

Body, authority, board, bureau, commission, district, or agency of this state or any political subdivision of this state;
Nonprofit organization;
Institution of higher education;
National securities association that is registered under 15 U.S.C. 78o-3 of the federal Securities Exchange Act of 1934;
A financial institution or an affiliate of a financial institution governed by Title V of the Gramm- Leach-Bliley Act;
Covered entity or business associate as defined in the privacy regulations of the federal Health Insurance Portability and Accountability Act (HIPAA);

Who is protected by the law?

Under the law, a protected consumer is defined as an individual who resides in the state of Montana.

However, the term consumer does not include an individual acting in a commercial or employment context or as an employee, owner, director, officer, or contractor of a company partnership, sole proprietorship, nonprofit, or government agency whose communications or transactions with the controller occur solely within the context of that individual’s role with the company, partnership, sole proprietorship, nonprofit, or government agency.

What data is protected by the law?

The statute protects personal data defined as information that is linked or reasonably linkable to an identified or identifiable individual.

There are several exemptions to protected personal data, including for data protected under HIPAA and other federal statutes.

What are the rights of consumers?

Under the new law, consumers have the right to:

Confirm whether a controller is processing the consumer’s personal data
Access Personal Data processed by a controller
Delete personal data
Obtain a copy of personal data previously provided to a controller.
Opt-out of the processing of the consumer’s personal data for the purpose of targeted advertising, sales of personal data, and profiling in furtherance of solely automated decisions that produce legal or similarly significant effects.

What obligations do businesses have?

The controller shall comply with requests by a consumer set forth in the statute without undue delay but no later than 45 days after receipt of the request.

If a controller declines to act regarding a consumer’s request, the business shall inform the consumer without undue delay, but no later than 45 days after receipt of the request, of the reason for declining.

The controller shall also conduct and document a data protection assessment for each of their processing activities that present a heightened risk of harm to a consumer.

How is the law enforced?

Under the statute, the state attorney general has exclusive authority to enforce violations of the statute. There is no private right of action under Montana’s statute.

For more Privacy Legal News, click here to visit the National Law Review.

Secure Software Regulations and Self-Attestation Required for Federal Contractors

US Policy and Regulatory Alert

Government contractors providing software across the federal government’s supply chain will be required later this year to comply with a new Secure Software Design Framework (SSDF). The SSDF requires software vendors to attest to new security controls in the design of code used by the federal government.

Cybersecurity Compromises of Government Software on the Rise

In the aftermath of the cybersecurity compromises of significant enterprise software systems embedded in government supply chains, the federal government has increasingly prioritized reducing the vulnerability of software used within agency networks. Recognizing that most of the enterprise software that is used by the federal government is provided by a wide range of private sector contractors, the White House has been moving to impose a range of new software security regulations on both prime and subcontractors. One priority area is an effort to require government contractors to ensure that software used by federal agencies incorporates security by design. As a result, federal contractors supplying software to the government now face a new set of requirements to supply secure software code. That is, to provide software that is developed with security in mind so that flaws and vulnerabilities can be mitigated before the government buys and deploys the software.

The SSDF as A Government Response

In response, the White House issued Executive Order 14028, “Executive Order on Improving the Nation’s Cybersecurity” (EO 14028), on 12 May 2021. EO 14028 requires the National Institute of Standards and Technology (NIST) to develop standards, tools, and best practices to enhance the security of the software supply chain. NIST subsequently promulgated the SSDF in special publication NIST SP 800-218. EO 14028 also mandates that the director of the Office of Management and Budget (OMB) take appropriate steps to ensure that federal agencies comply with NIST guidance and standards regarding the SSDF. This resulted in OMB Memorandum M-22-18, “Enhancing the Security of the Software Supply Chain through Secure Software Development Practices” (M-22-18). The OMB memo provides that a federal agency may use software subject to M-22-18’s requirements only if the producer of that software has first attested to compliance with federal government-specified secure software development practices drawn from the SSDF. Meaning, if the producer of the software cannot attest to meeting the NIST requirements, it will not be able to supply software to the federal government. There are some exceptions and processes for software to gradually enter into compliance under various milestones for improvements, all of which are highly technical and subjective.

In accordance with these regulations, the Cybersecurity and Infrastructure Security Agency (CISA) of the Department of Homeland Security issued a draft form for collecting the relevant attestations and associated information. CISA released the draft form on 27 April 2023 and is accepting comments until 26 June 2023.¹

SSDF Implementation Deadline and Requirements for Government Suppliers

CISA initially set a deadline of 11 June 2023 for critical software and 13 September 2023 for non-critical software to comply with SSDF. Press reports indicate that these deadlines will be extended due to both the complexity of the SSDF requirements and the fact that the comment period remains open until 26 June 2023. However, CISA has not yet confirmed an extension of the deadline.

Attestation and Compliance with the SSDF

Based on what we know now, the attestation form generally requires software producers to confirm that:

The software was developed and built in secure environments.
The software producer has made a good-faith effort to maintain trusted source code supply chains.
The software producer maintains provenance data for internal and third-party code incorporated into the software.
The software producer employed automated tools or comparable processes that check for security vulnerabilities.

Software producers that must comply with SSDF should move quickly and begin reviewing their approach to software security. The SSDF requirements are complex and likely will take time to review, implement, and document. In particular, many of the requirements call for subjective analysis rather than objective evaluation against a set of quantifiable criteria, as is usually the case with such regulations. The SSDF also includes numerous ambiguities. For example, the SSDF requires versioning changes in software to have certain impacts in the security assessment, although the term “versioning” does not have a standard definition in the software sector.

Next Steps and Ricks of Noncompliance

Critically, the attestations on the new form carry risk under the civil False Claims Act for government contractors and subcontractors. Given the fact that many of the attestations require subjective analysis, contractors must take exceptional care in completing the attestation form. Contractors should carefully document their assessment that the software they produce is compliant. In particular, contractors and other interested parties should use this opportunity to share feedback and insights with CISA through the public comment process.

K&L Gates lawyers in our National Security Practice are closely tracking the implementation of these new requirements.

1 88 Fed. Reg. 25,670.

Software as a Medical Device: Challenges Facing the Industry

SaMD Blog Series: Introduction

Editor’s Note: We are excited to announce that this article is the first of a series addressing Software as a Medical Device and the issues that plague digital health companies, investors, clinicians and other organizations that utilize software and medical devices. We will be addressing various considerations including technology, data, intellectual property, licensing, and contracting.

The intersection of software, technology and health care and the proliferation of software as a medical device in the health care arena has become common place and has spurred significant innovations. The term Software as a Medical Device (SaMD) is defined by the International Medical Device Regulators Forum as “software intended to be used for one or more medical purposes that perform these purposes without being part of a hardware medical device.” In other words, SaMD need not be part of a physical device to achieve its intended purpose. For instance, SaMD could be an application on a mobile phone and not be connected to a physical medical device.

With the proliferation of SaMD also comes the need for those building and using it to firmly grasp legal and regulatory considerations to ensure successful use and commercialization. Over the next several weeks, we will be addressing some of more common issues faced by digital health companies, investors, innovators, and clinicians when developing, utilizing, or commercializing SaMD. The Food and Drug Administration (FDA) has already cleared a significant amount of SaMD, including more than 500 algorithms employing artificial intelligence (AI). Some notable examples include FDA-cleared SaMD such as wearable technology for remote patient monitoring; doctor prescribed video game treatment for children with ADHD; fully immersive virtual reality tools for both physical therapy and mental wellness; and end to end software that generates 3D printed models to better plan surgery and reduce operation time. With this rapid innovation comes a host of legal and regulatory considerations which will be discussed over the course of this SaMD Blog Series.

General Intellectual Property (IP) Considerations for SaMD

This edition will discuss the sophisticated IP strategies that can be used to protect innovations for the three categories of software for biomedical applications: SaMD, software in a medical device, and software used in the manufacture or maintenance of a medical device, including clinical trial collaboration and sponsored research agreements, filing patent applications, and pursuing other forms of protection, such as trade secrets.

Licensing and Contracting with Third Parties for SaMD

This edition will unpack engaging with third parties practically and comprehensively, whether in the context of (i) developing new SaMD or (ii) refining or testing existing SaMD. Data and IP can be effectively either owned or licensed, provided such licenses protect the future interests of the licensee. Such ownership and licensing are particularly important in the AI and machine learning space, which is one area of focus for this edition.

FDA Considerations for SaMD

This edition will explore how FDA is regulating SaMD, which will include a discussion of what constitutes a regulated device, legislative actions to spur innovation, and how FDA is approaching regulation of specific categories of SaMD such as clinical decision support software, general wellness applications, and other mobile medical devices. It will also examine the different regulatory pathways for SaMD and FDA’s current focus on Cybersecurity issues for software.

Health Care Regulatory and Reimbursement Considerations for SAMD

This edition will discuss the intersection of remote monitoring services and SaMD, prescription digital therapeutics and how they intersect with SaMD, licensure and distributor considerations associated with commercializing SaMD, and the growing trend to seek out device specific codes for SaMD.

Our hope is that this series will be a starting point for digital health companies, investors, innovators, and clinicians as each approaches development and use of SaMD as part of their business and clinical offerings.

For more information on Healthcare, click here to visit the National Law Review.

Clop Claims Zero-Day Attacks Against 130 Organizations

Russia-linked ransomware gang Clop has claimed that it has attacked over 130 organizations since late January, using a zero-day vulnerability in the GoAnywhere MFT secure file transfer tool, and was successful in stealing data from those organizations. The vulnerability is CVE-2023-0669, which allows attackers to execute remote code execution.

The manufacturer of GoAnywhere MFT notified customers of the vulnerability on February 1, 2023, and issued a patch for the vulnerability on February 7, 2023.

HC3 issued an alert on February 22, 2023, warning the health care sector about Clop targeting healthcare organizations and recommended:

Educate and train staff to reduce the risk of social engineering attacks via email and network access.
Assess enterprise risk against all potential vulnerabilities and prioritize implementing the security plan with the necessary budget, staff, and tools.
Develop a cybersecurity roadmap that everyone in the healthcare organization understands.

Security professionals are recommending that information technology professionals update machines to the latest GoAnywhere version and “stop exposing port 8000 (the internet location of the GoAnywhere MFT admin panel).”

Article By Linn F. Freedman of Robinson & Cole LLP

For more cybersecurity legal news, click here to visit the National Law Review.

Privacy Tip #358 – Bank Failures Give Hackers New Strategy for Attacks

Hackers are always looking for the next opportunity to launch attacks against unsuspecting victims. According to Cybersecurity Dive, researchers at Proofpoint recently observed “a phishing campaign designed to exploit the banking crisis with messages impersonating several cryptocurrencies.”

According to Cybersecurity Dive, cybersecurity firm Arctic Wolf has observed “an uptick in newly registered domains related to SVB since federal regulators took over the bank’s deposits…” and “expects some of those domains to serve as a hub for phishing attacks.”

This is the modus operandi of hackers. They use times of crises, when victims are vulnerable, to launch attacks. Phishing campaigns continue to be one of the top risks to organizations, and following the recent bank failures, everyone should be extra vigilant of urgent financial requests and emails spoofing financial institutions, and take additional measures, through multiple levels of authorization, when conducting financial transactions.

We anticipate increased activity following these recent financial failures attacking individuals and organizations. Communicating the increased risk to employees may be worth consideration.

Article By Linn F. Freedman of Robinson & Cole LLP

For more communications, media, and internet legal news, click here to visit the National Law Review.

Category: cybersecurity

Current Status of US State Privacy Law Deluge: It’s 2024, Do You Know Where Your Privacy Program’s At?

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5 Trends to Watch: 2024 Emerging Technology

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