Last week, FinCEN (Financial Crimes Enforcement Network) issued a formal Advisory to Financial Institutions and published FAQs outlining specific cybersecurity events that should be reported through Suspicious Activity Reports (SARs). This Advisory follows former FinCEN Director Jennifer Shasky Calvery’s recent statements reminding “financial institutions to include cyber-derived information (such as IP addresses or bitcoin wallet addresses) in suspicious activity reports.” It also follows the launch of the Federal Financial Institutions Examination Council (FFIEC) Cybersecurity Assessment Tool (CAT). Although the Advisory does not change existing Bank Secrecy Act (BSA) requirements or other regulatory obligations, the Advisory highlights a series of cybersecurity events–such as Distributed Denial of Service (DDoS) attacks and ransomware incidents–that should be reported on SARs filed with FinCEN, even though they often (but not always) fall outside the traditional notion of a data breach or a compromise of personal information.
What should companies do when ransomware hits? The FBI says: (a) report it to law enforcement and (b) do not pay the ransom. Given the recent onslaught in ransomware attacks—such as a 2016 variant that compromised an estimated 100,000 computers a day—companies should consider how their incident response plans account for decision-making in response to ransomware, and include this scenario in their next (or an interim) tabletop simulation.
FBI Public Service Announcement
In a September 15 announcement, the FBI urged companies to come forward and report ransomware attacks to law enforcement. The FBI acknowledged that companies may hesitate to contact law enforcement for a variety of reasons: uncertainly as to whether a specific attack warrants law enforcement attention, fear of adverse reputational impact or even embarrassment, or a belief that reporting is unnecessary where a ransom has been paid or data back-ups have restored services.
Notwithstanding these dynamics, the FBI is calling on companies to help in the fight: “Victim reporting provides law enforcement with a greater understanding of the threat, provides justification for ransomware investigations, and contributes relevant information to ongoing ransomware cases.”
The FBI also offered some best practices that companies should consider incorporating into their cybersecurity program and/or their disaster recovery and business continuity plans. These recommendations include: regular backups that are verified, securing backups, implementation of anti-virus and anti-malware solutions, increased employee awareness training, institution of principle of least privilege policies, and more. READ MORE
Happy U.S. National Cybersecurity Awareness Month! One year ago, in recognition of the Department of Homeland Security’s annual campaign to raise awareness about cybersecurity, Orrick’s Cybersecurity & Data Privacy Group launched its award winning blog Trust Anchor.
Almost daily we hear news about data breaches, cybersecurity and privacy enforcement proceedings, litigation, and new laws and regulations. Trust Anchor covers it all: recent cases, legislative and regulatory developments, emerging compliance standards and best practices for cybersecurity and privacy risk management, insurance trends and more! But, we don’t just report on these events, we highlight key takeaways and what these developments mean for you.
Last week, the Federal Trade Commission convened a ransomware workshop to discuss the rising epidemic of attacks against U.S. businesses and individuals. In a ransomware attack, a malicious actor tricks a user into downloading malware that encrypts all of their files, and then demands payment in exchange for the decryption key. In the current climate, ransomware attacks appear to be a question of “when,” not “if,” especially given The Department of Homeland Security’s July report that there have been an average of 4,000 ransomware attacks per day since January 1, 2016.
There is no doubt that companies face unprecedented volume and variation in both disruptive and intrusive cyberattacks on their networks. Among the different attack methodologies today, ransomware is quickly becoming a major concern for CISOs and security professionals. According to Interagency Guidance from the U.S. Government, there are currently over 4,000 daily ransomware attacks – up over 300% from the 1,000 daily ransomware attacks experienced in 2015.
Ransomware can potentially hold hostage critical corporate, customer and employee data, but in-house legal and communications teams are also concerned about whether these attacks trigger notification rules. The Department of Health and Human Services Office of Civil Rights (“HHS OCR”), which enforces the HIPAA Security and Breach Notification Rules, stated in recently issued guidance that ransomware incidents may be considered a breach that require notification. The guidance is a poignant reminder to all companies, whether regulated by HIPAA or not, to carefully consider how evolving attack methodologies can directly implicate incident response strategies and compliance obligations.