www.bakerdatacounsel.com Open in urlscan Pro
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URL: https://www.bakerdatacounsel.com/
Submission: On June 26 via manual from MY — Scanned from DE

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DATA COUNSEL


COMMENTARY ADDRESSING RISKS AND OPPORTUNITIES THROUGH THE LIFECYCLE OF DATA,
TECHNOLOGY, ADVERTISING AND INNOVATION



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PRIVACY ‘DEEP IN THE HEART OF TEXAS’: AN OVERVIEW OF THE TEXAS DATA PRIVACY AND
SECURITY ACT

By Jerel Pacis Agatep, Erika Vela, Kimberly Gordy, Craig Carpenter and Jeewon
Serrato on June 20, 2023 Posted in Data Privacy

Texas, long lauded as one of the most “business-friendly” states, has passed a
comprehensive privacy law that will bring new regulations to consumer personal
data. The new Texas Data Privacy and Security Act (“TDPSA”), H.B. 4, was passed
by the State Senate on May 10, 2023, was signed by Governor Greg Abbott on June
18, 2023, and will take effect on July 1, 2024.

The TDPSA is a comprehensive privacy law that was largely modeled on Virginia’s
Consumer Data Protection Act (“VCDPA”), which went into effect on January 1,
2023. Similar to VCDPA and other state privacy laws, the TDPSA aims to establish
a comprehensive framework for the interaction between consumers and businesses
regarding the privacy and security of personal data, with the goal of maximizing
consumer rights’ effectiveness.[1] Although one of the goals of the TDPSA is to
maximize interoperability with other state privacy laws, there are key
differences in definitions, provisions, and exemptions that place the Lone Star
State’s new law in a category of its own.

Continue Reading

Tags: Privacy Law, TDPSA, Texas, VCDPA
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PODCAST: NFTS AND THE FUTURE OF DIGITAL BRANDS

By Gerald J. Ferguson on June 12, 2023 Posted in Podcast

Guests Jerry Ferguson and Scott Kominers discuss NFTs and how they can create
opportunities for brands in the marketplace with the help of some Really Awesome
Raccoons.

Questions and comments: gferguson@bakerlaw.com.

Listen to the full episode.

Subscribe to BakerHosts

Apple Podcast | Google Podcast | iHeartRadio | Spotify | Stitcher | TuneIn

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Tags: NFTs
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AS JULY 5TH RAPIDLY APPROACHES, THE NEW YORK CITY DCWP PROVIDES MUCH-NEEDED
GUIDANCE ON ARTIFICIAL INTELLIGENCE EMPLOYMENT PRACTICES AND AEDTS

By James A. Sherer and Brittany Yantis on June 9, 2023 Posted in AI

On May 22, 2023, the New York City Department of Consumer and Worker Protection
(“DCWP”) held an employer roundtable about Local Law 144, New York City’s law
regulating the use of Artificial Intelligence in the employment
context—specifically, automated employment decision tools (“AEDT”). With the
July 5, 2023 enforcement date rapidly approaching, the DCWP addressed several
open questions that remained after its issuance of the final rules, including
the applicability of the AEDT law, bias audit data and notice requirements, and
talent-sourcing AEDTs.

The DCWP additionally stated its intention to release FAQ guidance to assist
employers with compliance. While no indication has been given as to when those
FAQs will be released, the DCWP emphasized its intention to still begin
enforcement on July 5.

Continue Reading

Tags: AI, Artificial Intelligence, data breach, data privacy, data security,
DCWP, New York City, privacy
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I WON’T GET FOOLED AGAIN: MEASURES UNIVERSITIES SHOULD TAKE TO COMBAT NORTH
KOREA’S USE OF SPEARPHISHING CAMPAIGNS TO ACCESS THEIR ENVIRONMENTS AND STEAL
DATA

By Benjamin Wanger on June 7, 2023 Posted in Data Privacy

On June 1, the FBI, the U.S. Department of State and the National Security
Agency, together with the Republic of Korea’s (ROK) National Intelligence
Service, National Police Agency and Ministry of Foreign Affairs, issued a joint
advisory (the Joint Advisory) regarding the recent increased use of social
engineering by the Democratic People’s Republic of Korea’s (DPRK or North Korea)
state-sponsored cyber actors to gain access to the computer systems of
individuals employed by research centers and think tanks, academic institutions,
and news media organizations. These North Korean cyber actors are known to
conduct spearphishing campaigns posing as real journalists, academics or other
individuals with credible links to North Korean policy circles. The DPRK employs
social engineering to collect intelligence on geopolitical events, foreign
policy strategies and diplomatic efforts affecting its interests by gaining
illicit access to the private documents, research and communications of their
targets.

Background

The Joint Advisory explains that the U.S. government and others are tracking
several groups of North Korean cyber actors working to obtain intelligence to
provide to the North Korean government. The most prominent of these groups is
called “Kimsuky,” which is known to be a state-backed cyber hacking group that
targets think tanks, educational institutions and nuclear power plants. The
Joint Advisory explains that North Korea relies heavily on intelligence gained
by groups such as Kimsuky. Even if the information obtained does not have
significant geopolitical value, the North Koreans utilize the information to
craft more credible and effective spearphishing emails that can be leveraged
against more sensitive, higher-value targets.

When North Korean cyber actors such as the Kimsuky group engage in spearphishing
campaigns, they generally perform significant research on their targets and then
impersonate an actual person, such as a journalist, who would be expected to
legitimately contact the target. The initial email, sent from a spoofed domain,
often contains a malicious link or attachment that will allow the North Korean
actors to gain access to the target’s computer systems and/or email mailbox if
the target clicks on the link or downloads the attachment. In addition to
showing several sample emails that the North Korean actors sent in connection
with their spearphishing campaigns, the Joint Advisory lists several red flags
that universities should be looking for when trying to spot these emails.
Notably:

 * The emails may include real text of messages recovered from previous victim
   engagement with other legitimate contacts.
 * Emails in English may sometimes have awkward sentence structure and/or
   incorrect grammar.
 * Victims/targets with both direct and indirect knowledge of policy information
   – i.e., U.S. and ROK government employees/officials working on North Korea,
   Asia, China or Southeast Asia matters; U.S. and ROK government employees with
   high clearance levels; and members of the military – are approached with
   questions about common themes, such as North Korean nuclear issues and
   denuclearization on the Korean Peninsula.
 * Email domains look like a legitimate news media site but do not match the
   domain of the company’s official website.
 * Spoofed email accounts have subtle incorrect misspellings of the names and
   email addresses of the legitimate ones listed in a university directory or on
   an official website.
 * Malicious documents require the user to click “Enable Macros” to view the
   document.
 * The actors are persistent if the target does not respond to the initial
   spearphishing email. They will likely send a follow-up email within two or
   three days of the initial contact.
 * Emails purporting to be from official sources are sent using unofficial email
   services.

Potential Mitigation Measures

The Joint Advisory lists several measures that educational institutions can take
to reduce the likelihood that any of its users will be victimized by
spearphishing efforts. Those measures include:

 *  Implementing a user training program and phishing exercises to raise
   awareness among users about the risks of visiting websites, clicking on links
   and opening attachments.
 * Requiring phishing-resistant multifactor authentication for as many services
   as possible – particularly for webmail, virtual private networks (VPNs),
   accounts that access critical systems and privileged accounts that manage
   backups.
 * Regularly using port-checking capabilities to determine if the network is
   being accessed remotely via desktop-sharing software or a VPN or a virtual
   private server, particularly if use of remote desktop sharing software or VPN
   services to access accounts is not standard practice.
 * Limiting access to resources over internal networks, especially by
   restricting remote desktop protocols and using virtual desktop
   infrastructure.
 * Ensuring devices are properly configured and security features are enabled.
 * Disabling ports and protocols not in use for a business purpose.
 * Reviewing the security posture of third-party vendors and those
   interconnected with the university, and ensuring that all connections between
   third-party vendors and outside software or hardware are monitored and
   reviewed for suspicious activity.
 * Implementing application control policies that allow systems to execute only
   known and permitted programs.
 * Opening document readers in protected viewing modes to help prevent active
   content from running.
 * Installing updates for operating systems, software and firmware as soon as
   they are released.
 * Installing and regularly updating antivirus and anti-malware software on all
   hosts.
 * Requiring administrator credentials to install software.
 * Adding an email banner to messages coming from outside the university
   indicating that they are higher-risk messages.
 * Adding rules to block emails that match the sample emails provided in the
   Joint Advisory.
 * Enabling email authentication methods such as DMARC and DKIM on email
   domains, which generally makes certain forms of email spoofing more
   difficult.

Conclusion

Universities are no strangers to phishing email campaigns, often seeing several
per day. This Joint Advisory should serve as a reminder, however, of what could
be at stake if an entity connected with North Korea such as the Kimsuky group
gains access to information that the North Korean government can use for
geopolitical purposes. Therefore, it is important that universities consider
implementing some or all of the measures described above to reduce the
likelihood that their users will be victimized. Educational institutions or
other entities that believe they may have been targeted by a North Korean
spearphishing campaign should go to www.ic3.gov to file a report with the FBI;
reference #KimsukyCSA in the incident description.

Tags: data breach, data privacy, data security, North Korea, Spearphishing
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UPDATE ON GLBA SAFEGUARDS RULE IN HIGHER EDUCATION

By Benjamin Wanger and Pierce T. Cox on June 1, 2023 Posted in GLBA

On February 9, 2023, the Department of Education Office of Federal Student Aid
(“FSA”) issued an electronic notice regarding the Federal Trade Commission’s
Final Rule amending the Standards for Safeguarding Customer Information
(“Safeguards Rule”) under the Gramm-Leach-Bliley Act (“GLBA”). The amendments to
the Safeguards Rule, which go into effect on June 9, 2023, include updated data
security requirements for financial institutions, including all Title IV
institutions of higher education and servicers.

Continue Reading

Tags: Department of Education, Educational Institutions, FSA, FTC, higher
education
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THE POST-COOKIE DIGITAL ADVERTISING LANDSCAPE: PLANNING FOR PRIVACY COMPLIANCE
IN UNSETTLED TERRAIN

By Gerald J. Ferguson, Fernando A. Bohorquez, Jr. and Priyanka Surapaneni on May
31, 2023 Posted in Advertising

Digital advertising exists in a complex ecosystem that the average person
engages with daily. It encompasses a broad set of technologies for managing
advertisements across channels including search, display, video, mobile, and
social, with functions for targeting, design, bid management, analytics,
optimization, and automation. Digital advertising also incorporates many digital
tools and systems that target specific individuals and audiences.

In this Thomson Reuters Practical Law article, authors Jerry Ferguson, Fernando
Bohorquez and Priyanka Surapaneni discuss the digital advertising regulatory
landscape including the EU ePrivacy Directive, GDPR, CCPA, and other U.S. state
consumer privacy laws, emerging alternatives to third-party cookies, and best
practices for businesses to develop a privacy-focused, post-cookie digital
advertising strategy.

Read more.

Tags: Cookies, privacy compliance
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2023 DSIR REPORT DEEPER DIVE: U.S. EMPLOYEE PRIVACY DEVELOPMENTS

By Jennifer Mitchell, Justin T. Yedor and Frederick C. Bingham on May 30, 2023
Posted in Data Security Incident Response

Among the many developments in data privacy regulation that took place over the
past year, new requirements relating to employee personal information in
California and New York have deservedly received a lot of attention. Meanwhile,
ongoing risks arising under older laws—such as the massive verdict in the first
jury trial of a claim under the Illinois Biometric Information Privacy
Act—demonstrate that employers also cannot lose sight of compliance with more
familiar privacy laws.

Continue Reading

Tags: BIPA, CCPA, CPRA, Employee Privacy, privacy
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NEW YORK STATE ADDS HEALTH CARE GEOFENCING PROHIBITION, TAKING A MORE MEASURED
APPROACH THAN WASHINGTON’S SIMILAR BAN

By Nichole Sterling and Andreas Kaltsounis on May 25, 2023 Posted in Healthcare

As part of the health budget bill signed by Governor Hochul in early May, New
York has amended its General Business Law, introducing a prohibition on
geofencing of health care facilities that goes into effect on July 2, 2023 –
just three weeks before a similar ban in Washington state. This addition to the
General Business Law makes it illegal for anyone other than the health care
facility itself to establish or use a geofence or similar virtual boundary
around any health care facility to (1) deliver digital advertisements to, (2)
create profiles of, or (3) make any inferences about the health status, medical
condition, or medical treatment of any person at or within the health care
facility.

For purposes of the amendment, a health care facility is any public or private
entity that provides medical care or related services. This definition
explicitly includes hospitals, nursing homes, mental health care facilities, and
services provided to individuals with developmental disabilities, but many other
types of medical care services may be included in the scope of the definition.
The definition also encompasses the building in which any health care facility
is located.

Continue Reading

Tags: geofencing, My Health My Data Act, New York
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DEEPER DIVE INTO THE DATA

By Elise Elam on May 23, 2023 Posted in Data Security Incident Response

Every year, BakerHostetler collects and analyzes various metrics about the
incident response matters we handle. In 2022, we handled over 1,160 incidents.
The most striking trends we saw across those incidents were an overall increase
in the average ransom demands and payments, as well as an increase in recovery
times in certain sectors. We also saw a decrease in all the metrics we track
related to fraudulent fund transfers.

Continue Reading

Tags: Fraudulent Fund Transfers, Ransomware
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FTC ISSUES WARNING ON USE OF BIOMETRIC INFORMATION

By Joel Griswold and Bonnie Keane DelGobbo on May 19, 2023 Posted in FTC

On May 18, 2023, the Federal Trade Commission (FTC) issued a Policy Statement on
Biometric Information and Section 5 of the FTC Act (Policy Statement). Section 5
of the FTC Act, 15 U.S.C. § 45, prohibits “unfair or deceptive practices in or
affecting commerce” and empowers the FTC to bring civil actions for penalties of
not more than $10,000 per violation and issue cease and desist orders.

While the Policy Statement does not confer any rights on any person and does not
operate to bind the FTC or the public, companies should be mindful that the FTC
is now focusing on the use of “biometric information” and the technology used in
relation to such biometric information.

Continue Reading

Tags: Biometric Information, biometrics, FTC Act
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