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13 J. Bus. & Tech. L. 217 (2017-2018)
Cybersecurity Liability: How Technically Savvy Can We Expect Small Business Owners to Be

handle is hein.journals/jobtela13 and id is 233 raw text is: 






LOREN   F. SELZNICK*  AND   CAROLYN LAMACCHIA*


Cybersecurity Liability: How Technically Savvy Can

We Expect Small Business Owners to Be?








                                 INTRODUCTION

Target  Data Breach  Spilled Info on As  Many  As  70 Million Customers.'  Home
Depot's  breach could  be as big as Target's.' Data breaches at the nation's largest
retail companies dominate  the news, but small businesses are at greater risk.3 Hackers
recognize that small businesses have neither the financial resources nor the technical
expertise to protect their data.' Cyberattacks on small businesses intensify, but the
law's cybersecurity liability model develops  with only  the largest corporations  in
mind.'
      When   the public  learns of data breaches  at the megastores,  its reaction is
outrage.6 State regulators are inclined to punish  the corporation.! How   could the
corporation have  been so careless with customer information? The  hacker behind the
breach  is presumed  to be untraceable and, in any event, too poor to pay  for all the






@2018 Loren F. Selznick and Carolyn LaMacchia
  *   Dr. Selznick (J.D. Cornell University) is an Assistant Professor of Business Law and Dr. LaMacchia
(Ph.D. Nova Southeastern University) is an Assistant Professor of Information and Technology Management at
Bloomsburg University of Pennsylvania.
   1.  Maggie McGrath, Target Data Breach Spilled Info on as Many as 70 Million Customers, FORBES (Jan.
10, 2014, 8:56 AM), https://www.forbes.com/sites/maggiemcgrathl2014/01/10/target-data-breach-spilled-info-
on-as-many-as-70-million-customers/#4b03288be795.
   2.  Jaikumar Vijayan, Home Depot Breach Could be as Big as Target's, COMPUTERWORLD (Sept. 2, 2014,
1:13 PM), http://www.computerworld.comlarticle/2600309/data-security-home-depot-breach-could-
potentially-be-as-large-as-targets.html.
   3.  Jane Chen, Cyber Security: Bull's-Eye on Small Businesses, 16 J. INT'L BUS. & L. 97, 97-100 (2016).
   4.  Id. at 100.
   5.  See id. at 108 (noting that current cyber-security regulations do not discuss the requirements of small
businesses prior to a breach).
   6.  Lauren Zumbach, Massive Equifax Data Breach Prompts Outrage, Investigations, Bills to Ban Credit
Freeze Fees, CHI. TRIB. (Sept. 16, 2017, 5:32 PM), http://www.chicagotribune.com/business/ct-equifax-data-
breach-0917-biz-20170915-story.html.
   7.  Id.; see infra notes 199-206.


Journal  of Business  & Technology Law


217

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