Wall Street Technology Association - Ticker E-zine
“Planning and Addressing Data Breaches: Understanding Your General Liability Policy in a Cyber World”
Headlines announcing data breaches have become commonplace. While there have been high-profile breaches in the retail industry, such as the credit card breaches at Target Corp., financial services companies are equally at risk that their confidential information will be damaged, inadvertently disclosed or even stolen. Data breaches within financial services companies may trigger a wide array of federal and state laws, aimed at remedying the breach, including the duty to investigate the breach and notify those potentially affected by the breach. Beyond the cost of complying with such notification requirements, companies will also undoubtedly face a wide variety of related costs, such as the fees for forensic investigation, fraud monitoring, public relations and, of course, the cost of defending the litigations that often arise from such a breach.