Can Private Attorneys Help Prevent Cybercrime?

The US government has attempted to legislate penalties for data breaches, both federally and by state, in hopes of creating incentives for companies and government agencies to better protect personally identifiable information (PII). See all 50 states… Continue reading Can Private Attorneys Help Prevent Cybercrime?

Premera Blue Cross settles state data breach investigations for $10 million

The largest health insurance company in the Pacific Northwest says it will pay $10.4 million to 30 states to settle an investigation into a data breach that compromised information on more than 10 million people. The settlement, entered into court Thursday, requires Premera Blue Cross to pay $5.4 million to Washington to resolve an investigation that determined the company was slow to patch known security vulnerabilities. Hackers had access to customers’ medical records, bank account information and Social Security numbers from May 2014 until May 2015. The remaining $5 million will be split between other states. The case is the latest example of how, in the absence of federal leadership, state attorneys are taking legal action following large-scale security incidents. Connecticut and Illinois have opened investigations into the breach this year at the American Medical Collection Agency, which affected at least 20 million people. Other state lawsuits have resulted in […]

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Judge won’t toss ex-hedge fund manager’s claim Brevet Capital hacked his email

A federal judge has ruled that a former managing director of Brevet Capital Management — an asset firm that oversees billions of investment dollars — can move forward with a proposed lawsuit alleging that the company hacked into his personal accounts. U.S. District Judge William H. Pauley on Tuesday denied a request from Brevet Capital to reconsider a previous court decision not to dismiss the case. In May, another judge ruled that Paul Iacovacci could move forward with claims that Brevet had violated the Computer Fraud and Abuse Act and other laws by accessing accounts and hard drives to read his personal email and extract data from his personal hard drives. Brevet previously has acknowledged accessing the data but denies any wrongdoing. The case, first filed in September, highlights uncomfortable questions about what information employers can access about their employees, and how they obtain that access. The issue is an especially pressing security question, as […]

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‘DerpTrolling’ attacks on gaming sites get Utah man 27 months in prison

A federal judge has sentenced a young hacker from Utah to 27 months in prison for carrying out distributed denial-of-service attacks against Sony Online Entertainment and other online gaming companies in 2013 and 2014. The judge also ordered Austin Thompson, 23, to pay $95,000 for damages he caused to Sony Online Entertainment, which was sold and renamed Daybreak Game Company in 2015. Thompson gained notoriety using the Twitter handle DerpTrolling to announce online attacks that downed game servers around the world for hours. Thompson pleaded guilty in November. He had faced up to 10 years in prison and a $250,000 fine. A review of court records did not reveal why the judge opted for a more lenient sentence. On at least one occasion, Thompson reportedly used an open-source tool known as Low Orbit Ion Cannon. The tool started as an innocuous program for testing organizations’ networks, but has long been used […]

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Lawyer for alleged LinkedIn hacker wants out, says client is ‘not sane’

The attorney for Yevgeniy Nikulin has had enough. Defense counsel Arkady Bukh has asked Judge William Alsup of the Northern District of California to allow him to withdraw as the lawyer for the Russian man accused of stealing more than 100 million usernames and passwords from LinkedIn, Dropbox, and other sites. The court filing in San Francisco on Tuesday marks the end of a chapter in Nikulin’s long and strange story. The alleged scammer arrived in the U.S. more than a year ago after he was arrested in Prague on charges related to stealing some 117 million usernames and passwords. Nikulin since then has refused to cooperate in his defense, and underwent a court-ordered psychiatric evaluation in which he ultimately was determined fit to stand trial. The defense team, led by Bukh, had embarked on novel legal strategy in which it would have asked the court to extradite Nikulin back […]

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How a Secure Enterprise-Grade Communications Channel Can Protect the Legal Industry

Security breaches are on the rise in the legal industry. ABA’s 2018 Legal Technology Survey Report found that 23% of respondents reported that their law firms had experienced a security breach—up from 14% In 2016. From bad actors, to lost d… Continue reading How a Secure Enterprise-Grade Communications Channel Can Protect the Legal Industry

Key witness in press-release hacking case is sentenced to time served

It look like the legal troubles are over for Alexander Garkusha, one of the key figures in a case involving Wall Street high-rollers and Ukrainian hackers. U.S. District Judge Raymond Dearie on Monday sentenced Garkusha, a Georgia real estate developer, to time served for his role in a $30 million scheme to trade stocks based on information gleaned from hacked press releases. The Russian-born U.S. citizen served as a cooperating witness against other defendants. Garkusha has, “in effect, been on probation” since his arrest in August 2015, his attorney said in a court filing. He was arrested in August 2015, along with four others, as part of a criminal securities fraud case that began after hackers breached PR Newswire, Marketwire and Business Wire and gathered unreleased financial news. Authorities said Garkusha traded on that inside information, and he pleaded guilty later that year to conspiracy to commit wire fraud. Dearie this week cited Garkusha’s “thorough” and “compelling” testimony in the case […]

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