In honor of International Privacy Day on January 28, let's delve into the top privacy and cybersecurity concerns shaping the new year. As companies gear up to tackle evolving threats and regulatory requirements, staying ahead of the curve is paramount.
Privacy Laws on the Horizon
- Washington: The My Health My Data Act, effective March 31, 2024, targets personal health data outside HIPAA's purview, signaling expanded compliance obligations.
- Oregon: With the Oregon Consumer Privacy Act taking effect on July 1, 2024, businesses face thresholds based on consumer data volume and revenue, necessitating nuanced compliance.
- Texas: The Texas Data Privacy and Security Act, effective July 1, 2024, mandates compliance irrespective of volume or revenue, impacting a broad spectrum of businesses.
- Florida: The Florida Digital Bill of Rights, also effective July 1, 2024, focuses on major revenue-generating entities, aligning with broader industry trends.
- Montana: The Montana Consumer Data Privacy Act, effective October 1, 2024, mirrors comprehensive state privacy laws, with specific criteria for applicability and exemptions.
- New Jersey is poised to join the ranks of states enacting robust privacy legislation, with its forthcoming laws set to take effect in January 2025.
Evolving Cyber Threats
Advanced Social Engineering
- Threat actors leverage AI-driven phishing campaigns, necessitating enhanced employee training and anti-phishing technologies.
- Multi-factor authentication and robust password policies mitigate credential-based risks.
- Ransomware attacks evolve to include data exfiltration and public data exposure, requiring robust detection, response, and backup strategies.
- Regular testing of incident response procedures ensures readiness in the face of evolving threats.
- Deepfakes and AI facilitate financial fraud, emphasizing the need for stringent wire transfer verification protocols and rapid response mechanisms.
Regulatory Focus: SEC's Cybersecurity Disclosure Rules
- Public companies navigate stringent disclosure requirements, necessitating robust incident response frameworks and risk assessment protocols.
- Private entities supplying public companies must align with heightened regulatory expectations, ensuring robust cybersecurity programs and incident response readiness.
Litigation and Enforcement Landscape
Class Action Surge
- Data breach litigation surges as regulatory disclosures increase, emphasizing the importance of attorney-client privilege incorporation in incident response protocols.
- Regulatory enforcement actions escalate, underscoring the need for comprehensive compliance programs and incident response preparedness.
Vendor Management and Supply Chain Resilience
Mitigating Supply Chain Risks
- Heightened focus on third-party risk management, with emphasis on critical vendor identification, due diligence, and contractual safeguards.
- Contractual provisions play a pivotal role in protecting against data incidents and ensuring seamless incident response coordination.
Best Practices for 2024 Preparedness
- Evaluate privacy practices and update policies to align with evolving regulatory landscapes.
- Review and refine incident response plans, emphasizing materiality assessment and tabletop exercises.
- Strengthen vendor management protocols, incorporating robust due diligence and contractual provisions.
- Foster senior leadership and board engagement, promoting a culture of cybersecurity awareness and oversight.
In navigating the complexities of privacy and cybersecurity in 2024, proactive measures and robust frameworks are indispensable. By embracing best practices and staying ahead of emerging threats, companies can safeguard their operations and uphold trust in an increasingly digital world.