Minnesota CLE Cyber Security Primer for Lawyers v2.1r

A CYBER SECURITY PRIMER FOR LAWYERS

Tuesday, September 10, 2013: 9:00 – 10:30 a.m.

Today’s Speakers Moderator: Paul Knapp, President and CEO, Space Center Ventures, (612) 710-1203, [email protected] Presenters: Scott Larson, President, Larson Security, LLC (612) 360-9982, [email protected], 13 years’ experience as Supervisory Special Agent with the Federal Bureau of Investigations, led the FBI’s Computer Investigations and Infrastructure Protection Program; 10 years civil, regulatory and criminal engagement management, digital forensics, cyber security and electronic discovery. Rick Ostrom, President, WayPoint, Inc. (651) 702-0138, [email protected], 26 years’ experience as a Special Agent and Supervisor with the Federal Bureau of Investigation; former 3M Corporate Security & Business Risk Mitigation

Agenda 1. What does Cyber Security Encompass?

2. Two Big Current Issues: Big Data and Devices

3. What can you and your Clients do Proactively?

4. Regulatory Compliance Issues

5. Contractual Compliance Issues 6. Incidence Response and Cyber Security

7. Conclusions

ly

What does Cyber Security Encompass?

Internal Threats Data Theft Accidental data loss or data leakage Employment Matters

External Threats Random malware and botnets Client-specific threats (e.g. Hacktivism – DDoS) APT & economic espionage

Regularly Compliance HIPAA, GLBA Online behavioral advertising issues

Non-U.S. requirements: EU draft data protection regs and “cookie” directive

Contractual Compliance NDA M&A SLA/Disclosure

What does Cyber Security Encompass?

Internal Threats Data Theft Accidental data loss or data leakage

WSJ.COM

BBC.COM

What does Cyber Security Encompass?

External Threats Random malware and botnets Client-specific threats (e.g. Hacktivism/DDoS) APT & Economic espionage

What does Cyber Security Encompass?

External Threats – APT Patch Mgmt, Active Directory, Configuration

RSA Blog

What does Cyber Security Encompass?

Regularly Compliance HIPAA, GLBA Online behavioral advertising issues Non-U.S. requirements: EU draft data protection regs

and “cookie” directive

What does Cyber Security Encompass?

Contractual Compliance NDA M&A SLA/Disclosure

Hot Topics: Big Data and Devices • Big Data Issues

─ Notice/consent ─ Secondary purposes ─ De – identification, pseudo anonymization ─ Automated decision making ─ Roles and contractual obligations

• Devices ─ BYOD: iPads, Phones, etc. ─ Mobile Apps ─ Ownership and MDMs/MAMs

Amazon AWS

What Can You & Your Clients do Proactively?

Maintain a Secure Network: Defense-in-depth & Segment High $ Data Bolster Identity and Access Management (IAM) System Perform Security Assessments/Privacy Analysis/Penetration Tests Encryption (Email & Cloud) Conduct Training and Table-Top Exercises Have an incident response policy: know who you will engage internally

and externally Check insurance coverage

Build and Maintain A Secure Network Maintain a Configuration Management Program

Maintain an Information Security Policy

Incident Response Plan

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• To reduce accidental loss of data • To reduce theft

• To control roles

• To reduce risk

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Bolster Identity and Access

Management (IAM) Systems

Perform Security Assessments • SSAE 16 Audits (formerly SAS-70) • Advanced Persistent Threat (APT)

─ Spear phishing ─ Network vulnerability assessments ─ Web App VA and code review (SQL injection attacks)

• Custom & Commercial Tools • SDI & Read Only Domain Controllers • Patch Management & Configuration • The Cloud: dark “public” clouds, light “private” clouds • Your client’s failure to remediate security risks identified in a security

assessment may be damaging and discoverable “smoking gun” in security breach litigation

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Perform Penetration Testing

• “White hat” consultants • “Red Teaming” • Regularly Monitor and Test Networks

– Internal Teams – Automated Tools – Remote Forensics

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Conduct Training & Exercises • User security awareness training

• Board, Audit (or IT Risk Management) Committee, CTO, CISO, CIO, and

their employees, and don’t forget vendors including law firms

• Persons involved with M&A, Divestitures, Employee Misconduct, Trade Secrets and Intellectual Property must all be educated and sensitized to cyber security issues

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Regulatory Compliance

A panoply of state and federal and international regulations, most notably: HIPAA, PCIDSS, State Data Breach Laws

(http://www.hhs.gov/ocr/privacy/hipaa/understanding/) (https://www.pcisecuritystandards.org/security_standards/)

Online behavioral advertising/FTC and state AGs (http://www.ftc.gov/news-events/press-releases/2009/02/ftc-staff-revises-online-behavioral-advertising-principles)

Securities Regulations (e.g. SOX, GLBA) (http://www.sec.gov/info/smallbus/404guide/intro.shtml) (http://www.business.ftc.gov/privacy-and-security/gramm-leach-bliley-act)

Foreign Corrupt Practices Act (FCPA) (http://www.justice.gov/criminal/fraud/fcpa/)

EU Data Protection Directives (http://ec.europa.eu/justice/data-protection/index_en.htm)

Children’s Online Privacy Protection Act http://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/childrens-online-privacy-protection-rule)

Extends to mobile apps and online technologies Regs cover “personal information” collected including

cookies, etc.

Contractual Compliance

NDA’s and Notice of Breach clauses

M&A transaction confidentiality before and after transaction

PCI Compliance

“ At any given moment, there is a certain percentage of the population that’s up to no good.”

Ernst & Young 13th Global Fraud Survey

Increasing acceptance of unethical behavior • Bribery and corruption • Misstate financial performance

Control environment not strong enough • Mixed messages from top – failure to

penalize Independent view on compliance demanded Need to manage third parties

• Lack of due diligence Acquisitions

• Lack of pre-acquisitions

Summary of the Final Omnibus HIPAA/HITECH Rules

Business Associates

Why The Concern?

• Effective March 26, 2013 • Compliance Deadline of

September 23, 2013 • CMS Audit will begin again after

September 23, 2013

Biggest Change for Business Associates

• Provides direct liability for Business Associates and their subcontractors

• Includes entities that create, receive, maintain, or transmit PHI on behalf of a covered entity – Law Firms – Accountants – Person that provides data transmission

services for PHI – Many Others

Business Associates Must • Comply with the terms of a Business Associate

agreement related to the use and disclosure of PHI

• Provide PHI to the Secretary upon demand • Provide an electronic copy of PHI to an

individual patient upon request • Make reasonable efforts to limit PHI to the

minimum necessary to accomplish the intended purpose

• Enter into Business Associate agreements with subcontractors that create or receive PHI

Best Practice • Business Associates are not required to have

written policies and procedures

• Recommend highly for BA’s – Written Policies and Procedures – Conduct Security Review and Provide

Written Assessment – Consider Encryption

Covered Entity To Do • Identify and Document Business Associates • Business Associates Identify and Document

subcontractors • Business Associates need new policies for new

requirements • Review and Amend Existing Business Associate

Agreements • Update Breach Notification Compliance Plan • Confirm Business Associates have written contracts

with subcontractors and vendors and they are HIPAA Compliant

Business Associates To Do

• Assign Information Security Officer • Implement Privacy Policies • Implement Security Policies

– Physical & IT • Establish written contracts for all

subcontractors or vendors you delegate a function, activity or service

• Implement Breach Notification Compliance Plan

• Implement HIPAA Privacy and Security Awareness Training Program – Annual Training

• Conduct Security Review

Incident Response & Reactive Cyber Security

• Crisis Management! ─ Engage incident response policy and plans ─ Engage pre-determined internal personnel and external consultants ─ Include legal and technical experts early on upon escalation of incident

• Litigation Support ─ Forensics ─ Analytics

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Conclusion

Build best defense possible

Be aware of regulatory and

contractual issues Have a plan to respond to

incidents Test and exercise plans,

crisis personnel and critical systems

Today’s Speakers Moderator: Paul Knapp, President and CEO, Space Center Ventures, (612) 710-1203, [email protected] Presenters: Scott Larson, President, Larson Security, LLC (612) 360-9982, [email protected], 13 years’ experience as Supervisory Special Agent with the Federal Bureau of Investigations, led the FBI’s Computer Investigations and Infrastructure Protection Program; 10 years civil, regulatory and criminal engagement management, digital forensics, cyber security and electronic discovery. Rick Ostrom, President, WayPoint, Inc. (651) 702-0138, [email protected], 26 years’ experience as a Special Agent and Supervisor with the Federal Bureau of Investigation; former 3M Corporate Security & Business Risk Mitigation