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Business Law for Technical
Professionals
Cyber Law and Data Privacy
Overview
§ Cyber law and cybersecurity general issues
§ Federal data privacy laws and Federal Trade Commission (FTC) guidelines
§ Ecommerce and Payment Card Industry (PCI) security standards
§ Data security and ransomware
§ Employee responsibility and cyber space
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Cyber Law and Cybersecurity
§ What is cyber law?
o ”Laws, or a specific law, relating to internet and computer offenses, especially
fraud or copyright infringement.” Oxford Languages Dictionary
o “An evolving area of law that is applied to computers and the various activities
over the internet and networks.” Black’s Law Dictionary
§ Multitude of legal issues related to the internet, social media and cyber attacks
o e.g., employee revealing company trade secrets or making defamatory comments
about a competitor on Facebook, LinkedIn, or Twitter; misuse of customer
information gathered online by companies; data security breach
§ What is cyber security?
o “The state of being protected against the criminal or unauthorized use of
electronic data or the measures taken to achieve this.” Lexico
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Cyber Law and Cybersecurity
§ No unified set of cyber laws or regulations in the U.S.
o Patchwork of federal and state rules
o According to the National Conference of State Legislatures all 50 states have laws
requiring businesses and governments to notify individuals of security breaches
involving their personal information
§ Breaches may lead to identity theft (e.g., name, SSN, account number, password) or
financial crimes/fraud (e.g., theft of credit card, phone or utilities, bank, mortgage,
employment related, loan or healthcare information)
§ Curious about your state? Review the National Conference of State Legislatures site
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“Relying on the government to protect your privacy is like
asking a peeping tom to install your window blinds.”
John Perry Barlow, poet and sometimes songwriter for the Grateful Dead
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Federal Data Privacy Laws
§ Children’s Online Privacy Protection Act (COPPA), 2000
§ Gramm-Leach-Bliley Act (GLB Act), 1999
§ Fair Credit Reporting Act, 1970, amended in 2003
§ Electronic Communications Privacy Act (ECPA), 1986
§ Health Insurance Portability and Accountability Act (HIPAA), 1996
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Data Privacy Best Practices
§ Federal Trade Commission’s four “fair information practice principles”:
1. Notice
2. Choice
3. Access
4. Security
§ FTC data breach response advice for businesses:
o Secure operations (e.g., adopt payment card industry practices)
o Identify and fix vulnerabilities
o Notify affected individuals, law enforcement and businesses affected
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Ecommerce and Data Security
§ Ecommerce: buying and selling of products or services over the internet
o Transmission of payment information and personally identifiable information
online fraught with risk of fraud and theft
Tools Adopted to Reduce the Risk of Fraud and Theft
§ Payment Card Industry (PCI) Security Standards Council (SSC)
o PCI SSC provides a global forum for the payment industry to develop and refine
data security standards to ensure safe payments worldwide
§ PCI Data Security Standards – the industry overall has agreed to store, process, or
transmit cardholder data in accordance with the standards set by the PCI SSC
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Ecommerce and Data Security
§ PCI data security goals developed by the PCI build and maintain a secure network:
o Protect cardholder data
o Implement strong access control measures
o Regularly monitor and test networks
o Maintain a vulnerability management program and information security policy
§ Details provided on PCI SSC website, Maintaining Payment Security
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Ransomware
§ Ransomware: “malicious software that infects a computer and restricts users’ access
to it until a ransom is paid to unlock it.” UC Berkeley
§ How to respond to an attack:
o Disconnect from networks
o Disconnect external devices
o Report it
§ Tools to Prevent:
o Employ a data backup and recovery plan
o Download latest patches to operating systems and software
o Maintain up-to-date anti-virus software
o Restrict user permissions to install or run software
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Ransomware
How bad is it?
§ Washington state problems illustrate growing threat:
o Through the first 10 months of 2021
o 280 data breaches compared to 60 in all of 2020
o 150 ransomware incidents, more than previous 5 years combined
§ Federal Laws may help:
o July 21, 2021, house passed H.R.3138 – State and Local Cybersecurity
Improvement Act; still under review in Senate
o Infrastructure law signed by President Biden in November 2021 included $500
million to go to municipalities and tribal communities to fight the problem
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Employees’ Responsibility and Role
§ Employee social media use key
o Avoid downloading on email, phones or computers documents or links from
unknown sources. Phishing attacks are becoming more and more sophisticated.
§ Content which employees should avoid posting:
o Information related to litigation in which company is involved
o Non-public information of any kind about company, including, technical
and financial information, future business plans
o Defamatory material (negative comments about competitors)
o Personal, sensitive, or confidential information of any kind
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Employee Related Matters in Cyber Space
§ Monitoring employee emails and online activities
o No 4th amendment privacy protection
o Electronic Communications Privacy Act comes into play
• grants employers the authority to review to evaluate the ‘efficiency and
effectiveness’ of the employee efforts
§ Monitoring employee remote working space and activities
o More protection by 4th amendment but not for equipment provided by employer
• e.g., computers, phones, etc.
• COVID experience likely to lead to new laws
§ Advice to employers – adopt and revise policies
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© The Johns Hopkins University 2021, All Rights Reserved.
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