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10 Int'l. In-House Counsel J. 1 (2016-2017)
Is Your Data Protected? A Look at Cybersecurity Regulations in the US and EU

handle is hein.journals/iihcj10 and id is 584 raw text is: 

International In-house Counsel Journal
Vol. 10, No. 40, Summer 2017, 1

                           Is Your   Data  Protected?
         A  Look   at Cybersecurity Regulations in the US and EU

                                 RENEE   WILSON
  Senior Paralegal, Enterprise Regulatory Law Department, Prudential Financial, USA
                                 STEPHEN SHINE
 Chief Regulatory Counsel, Enterprise Regulatory Law Department, Prudential Financial,

In recent years, cybersecurity has become   one  of the largest issues facing senior
management   and boards of directors in regulated industries. As technology progresses
and  the sophistication of hackers has grown, companies  must  increase measures  to
protect client data and initiate preventative measures to thwart cyber-attacks. Cyber-
attacks, which tend to be more directed and intentional, are not the only technological
issues companies face. Many companies  also face issues of data breaches, which can be
broader than cyber-attacks and often occur accidentally. Available evidence indicates that
data breaches have occurred in approximately eighty to ninety percent of Fortune 500
companies  and government  agencies in the United States.1 From January 2005 through
2010, these data breaches have  caused over 350  million records containing sensitive
personal information to be  compromised. The targets of many of these breaches
included  financial institutions, major retail corporations, universities, health care
providers, and government agencies, both local and federal.3 In 2016, 1,093 data breaches
were reported, representing a forty percent increase from 2015.4 The leading causes stem
from hacker intrusion, stolen or lost laptops and computers, and insider theft of private
information. Like data breaches, cyber-attacks have also increased over the past year. In
May   2017, a  global cyber-attack was launched,  affecting computer systems  in 74
countries around the world. 6 Another cyber-attack also affecting the world occurred in
2017 when  more than 200,000 Microsoft Windows   computers in 150 countries including
FedEx,  Britain's National Health Service, and Spanish telecom giant Telefonica, were
hijacked by  the WannaCry   ransomware   cryptoworm,  which  held user files hostage
through  encryption and  demanded a Bitcoin ransom      before  the files would  be
unlocked/unencrypted.' Through  2015,  there was an increase in cyber threats in the

'Abraham Shaw, Data Breach: From Notification to Prevention Using PCI DSS, 43, Colum. L.J. & Soc. Probs.
  517, 517 (2010).
2 Id. at 517
s David C. Grossman, Comment: Blaming the Victim: How FTC Data Security Enforcement Make Companies
  and Consumers More Vulnerable to Hackers, 23, Geo. Mason L. Rev. 1283, 1286 (2016).
'2016 Was a Record Year for Data Breaches, https://www.bloomberg.com/news/articles/2017-01-19/data-
s Abraham Shaw, Data Breach: From Notification to Prevention Using PCI DSS, 43, Colum. L.J. & Soc. Probs.
  517, 517 (2010).
62017 Security Breaches: Frequency and Severity on the Rise https:l/revisionlegal.corldata-

ISSN 1754-0607 print/ISSN 1754-0607 online

International In-house Counsel Journal

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