March 27, 2015

From Law Technology Today

by Ari Bai and Nick Verdame

While taxes and death are currently the world’s only guarantees, we are not long from days in which being affected by cyber attacks will join that formidable group. While data breaches are inevitable, there is good news. According to Online Trust Alliance’s 2014 Data Protection & Breach Readiness Guide, nearly 90 percent of the breaches in 2013—which exposed a total of 823 million records—were preventable. Courts are routinely making it clear that it is the responsibility of the companies that hold personal information, not solely the individual owner of it, to proactively protect the data. A company must take steps to protect itself, and its customers to, at a minimum, mitigate the damage of a potential breach. Currently, 48 states and the federal government require companies to take steps to prevent cyber attacks. Abiding by these regulations often helps a company protect itself, and its directors, from potential lawsuits. 

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