Data Breach Preparation and Response. April 21, 2017
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1 Data Breach Preparation and Response April 21, 2017
2 King & Spalding Data, Privacy & Security King & Spalding s 60 plus lawyer Data, Privacy & Security ( DPS ) Practice is best known for: Experienced crisis and security incident response managers Former government lawyers who balance cooperating with law enforcement and defending regulator investigations Bona fide trial attorneys with track records of successfully defending data breach and privacy class actions and litigation Seasoned counselors who apply the real world to data privacy and security governance Law360 Privacy Practice Group of the Year, Law360 Privacy MVP and two Cybersecurity Docket Top Incident Response 30 awards 2
3 Agenda Overview Incident Awareness Incident Investigation Part I Incident Investigation Part II Questions / Discussion 3
4 Purpose of the Exercise Simulate incident to expose participants to process and workflows Primarily focused on process components Less focused on technical components Provoke thought and discussion about security incident preparedness and response 4
5 Real World Incident Response Defensible Policies Corporate Policies & Practices Preparation Litigation & Investigation Security Incident Defensible Incident Management Incident Response Collaborative Support 5
6 Case Background Organization profile: $5 B multinational manufacturer Operations across United States Business to Business 30,000 employees 6
7 Security Incident Human Resources Department: HR employee reports to supervisor that a week ago she sent an in response to a request from the CFO, which attached a spreadsheet including W-2 information for employees. After reviewing the again today, she noticed an IP address which did not look familiar. The supervisor reported the incident to the HR Director. 7
8 Incident Awareness Companies become aware of an incident in any number of ways, including communications from: Third party vendors Independent security researchers FBI or other law enforcement agencies Customers Employees Day 1 Make an initial assessment of the scope and nature of the incident Collect and preserve data related to the incident Decide to invoke your IRP Inform appropriate stakeholders Develop plan of action 8
9 Investigation Part I Internal and forensic investigations begin Frequent interaction with Stakeholders Identify scope of incident and begin short term remediation Develop narrative to minimize risk Day 2 Legal directs privileged internal and forensic investigations Decision is made for internal IT to handle review IT identifies and retrieves copy of phishing and foreign IP address IT searches for other similar s 9
10 Investigation Part II End of internal and forensic investigation, beginning of longterm remediation Keep in mind potential legal actions (e.g., litigation, regulatory inquiries) Day 4 Legal, IT and Forensic experts find answers to questions regarding scope and legal exposure Scope of incident includes two phishing s, but only one involved a reply response The reply included a spreadsheet with W-2 information of 20,000 employees Initial focus is on warning employees and reducing risk 10
11 Workflow Management Notice Notification Laws SEC disclosures Federal laws State breach laws Investors OCR FTC State AG DOI Legal Obligations Contractual obligations Third party vendors Business partners Legal Prepare for Legal Proceedings Regulators Lawsuits Respond to inquiries Defensive Tort / contract litigation Shareholder derivative suits Offensive Perpetrators and related parties Law Enforcement FBI investigation DOJ criminal investigation Subpoena for forensic evidence Prosecution Insurance Request for coverage Litigation 11
12 Notification Notifications Regulators Law Enforcement Media Insurance Carriers Vendors Customers Employees Days 5-8 Notification Obligations IRS State Attorneys General Individuals 47 states, D.C., & U.S. territories Consistent approach to notifications and case narrative to minimize legal and business harm 12
13 Support For the Long Run Insurance Regulatory Enforcement Actions Litigation Workflows in Action Review and provide notice for cyber liability coverage Regulatory inquiries Press coverage Class action complaint 13
14 The Long Battle & Lessons Learned Legal proceedings and investigations continue IT remains vigilant in securing and monitoring all systems and upgrading safeguards Review the response, learn from the experience, and prepare for the next one 14
15 Questions? 15
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