ARTICLE
15 February 2022

What Is Your Company's Duty To Prevent And Address Ransomware Attacks?

PD
Phelps Dunbar LLP

Contributor

Phelps is a full-service Am Law 200 law firm, blending valuable traditions and progressive ideas to foster a culture of collaboration among our lawyers in Alabama, Florida, Louisiana, Mississippi, North Carolina, Tennessee, Texas, and London. The firm’s lawyers handle a broad range of sophisticated business needs regionally, nationally, and internationally.
Malware is a constant threat to national security, and one attack can cripple a business. Ransomware makes valuable information vulnerable, requires enormous payments to retrieve the information, and can even result in civil liability.
United States Technology

Malware is a constant threat to national security, and one attack can cripple a business. Ransomware makes valuable information vulnerable, requires enormous payments to retrieve the information, and can even result in civil liability. But there are ways to protect your business and limit exposure if a breach happens.

  • Encrypt your data. In many states, this protects you from liability if your data is hacked. Encryption limits access to data to only authorized people with the right key. In the event of a cyberattack, encryption makes data unreadable for third parties who do not have the right key.
  • Have a robust cybersecurity plan. A new DOJ initiative can hold companies accountable for putting U.S. information at risk by not providing enough cybersecurity protocols. The Civil Cyber-Fraud Initiative applies to all federal contractors and federal grant recipients. These individuals and entities should monitor and accurately report their cybersecurity services to avoid possible civil penalties.
  • Report incidents. There is no competitive advantage for any company to keep cybersecurity breaches to itself. The Department of Homeland Security and FBI encourage victims to report all cybersecurity incidents. You can report the following cybercrimes to FBI Field Office Cyber Task Forces:
    • Computer intrusions or attacks
    • Criminal hacking
    • Espionage, sabotage or other foreign intelligence activity
    • Fraud
    • Identity theft
    • Intellectual property theft
    • Terrorist activity
    • Theft of trade secrets

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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