Yet again, at the last minute, the Federal Trade Commission has announced that it is delaying enforcement of the Red Flags Rule. This time, the postponement is until June 1, 2010 and comes “[a]t the request of Congress.” This is the FOURTH time that the FTC has delayed “enforcement” of the controversial rules intended to… Continue Reading
Monthly Archives: October 2009
BREAKING NEWS: Lawyers Need Not Implement Red Flag Program
Posted in LegislationJust before noon today, Judge Walton granted summary judgment from the bench in favor of the American Bar Association in the ABA lawsuit over application of Red Flag Rules to legal profession. We’ll post the decision as soon as it is available.
$1.8 Million Verdict in Pretexting Case
Posted in Employee PrivacyWritten by Cynthia and Michael A Cook County, Illinois jury recently awarded $1.8 million dollars to Kathy Lawlor, who claimed that her former employer, North American Corp. of Illinois, violated her privacy rights by hiring a private investigator who fraudulently obtained her telephone records through the use of “pretexting” – or by pretending to be… Continue Reading
Changes to the “Red Flag” Rules may be coming — and so is the November 1 compliance deadline
Posted in Data Compliance & SecurityBy an overwhelming vote of 400-0, the U.S. House yesterday approved legislation that will exempt certain businesses from the Federal Trade Commission’s Red Flag Rules. As we have reported, the Red Flag Rules require a broadly-defined class of “creditors” to implement identity theft prevention programs by November 1st. Under H.R. 3763, health care, accounting, and… Continue Reading
More on the real cost of the Heartland breach
Posted in Data BreachNearly 10 months after disclosing a months-long data breach that affected millions of consumers, the financial impact of the Heartland data breach continues to unfold. InformationWeek reports that Heartland stock prices plunged more than $500 million following the breach, and while shareholder value has rebounded, other breach related costs have thus far totaled $32 million,… Continue Reading
When the “Safe Harbor” is Not So Safe
Posted in Data Compliance & SecurityIf your company transfers personal data cross-border and you participate in the Safe Harbor program, it’s time to check the status of your certification. For the second time in a month, the Federal Trade Commission has announced enforcement actions against companies under Safe Harbor, the international privacy framework that provides a means for U.S. companies… Continue Reading
Vets Data At Risk? Again?
Posted in Data BreachWired.com reports on a possible breach at — of all places — the National Archives and Records Administration (NARA) that, if verified, could affect tens of millions of records about U.S. military veterans. It appears that it may involve an issue that I call “Data Security 101” — the failure of a contractor to wipe… Continue Reading
