On December 24, 2024, New York Governor Kathy Hochul signed into law an amendment to New York General Business Law § 899-aa modifying the state’s data breach notification requirements. The amended law, which is effective immediately, imposes new requirements businesses must follow when providing notifications following a data breach affecting New York residents. Specifically, businesses now must disclose data breaches affecting New York residents within thirty days from the discovery of a breach. Additionally, the amendment adds the New York Department of Financial Services (“NYDFS”) to the list of state regulators that must be notified whenever a breach requiring notification to New York residents occurs. Continue Reading New York Adopts Amendment to the State Data Breach Notification Law
Micaela McMurrough
Micaela McMurrough serves as co-chair of Covington's global and multi-disciplinary Technology Group, as co-chair of the Artificial Intelligence and Internet of Things (IoT) initiative. In her practice, she has represented clients in high-stakes antitrust, patent, trade secrets, contract, and securities litigation, and other complex commercial litigation matters, and she regularly represents and advises domestic and international clients on cybersecurity and data privacy issues, including cybersecurity investigations and cyber incident response. Micaela has advised clients on data breaches and other network intrusions, conducted cybersecurity investigations, and advised clients regarding evolving cybersecurity regulations and cybersecurity norms in the context of international law.
In 2016, Micaela was selected as one of thirteen Madison Policy Forum Military-Business Cybersecurity Fellows. She regularly engages with government, military, and business leaders in the cybersecurity industry in an effort to develop national strategies for complex cyber issues and policy challenges. Micaela previously served as a United States Presidential Leadership Scholar, principally responsible for launching a program to familiarize federal judges with various aspects of the U.S. national security structure and national intelligence community.
Prior to her legal career, Micaela served in the Military Intelligence Branch of the United States Army. She served as Intelligence Officer of a 1,200-member maneuver unit conducting combat operations in Afghanistan and was awarded the Bronze Star.
CISA and FBI Publish Product Security Bad Practices
On October 16, 2024, the U.S. Cybersecurity and Infrastructure Security Agency (“CISA”) and the Federal Bureau of Investigation (“FBI”) published guidance on Product Security Bad Practices (the “Guidance”) that identifies “exceptionally risky” product security practices for software manufacturers. The Guidance states that the ten identified practices—categorized as (1) Product Properties, (2) Security Features, or (3) Organizational Processes and Policies—are “dangerous and significantly elevate[] risk to national security, national economic security, and national public health and safety.”
The Guidance offers recommendations to remediate each of the identified practices and states that adoption of the recommendations indicates software manufacturers “are taking ownership of customer security outcomes.” Provided below are the ten practices and associated recommendations.Continue Reading CISA and FBI Publish Product Security Bad Practices
NIST Report and Recommendations on Fostering Development of the Internet of Things
On October 22, the National Institute of Standards and Technology (“NIST”) Internet of Things (“IoT”) Advisory Board released the Internet of Things Advisory Board Report, which concludes that IoT development has progressed more slowly than anticipated and identifies 26 findings that explain the slower pace of development and growth. The Report offers 104 recommendations on how the government can help foster IoT development. The Advisory Board provided this report to the IoT Federal Working Group emphasizing that an IoT transformation will boost U.S. economic growth, increase public safety and national resilience, create a more sustainable planet, individualize healthcare, foster equitable quality of life and well-being, and facilitate autonomous operations of our national infrastructure. For background, the IoT Federal Working Group was established by Congress in 2020 and was charged with identifying policies and statutes inhibiting IoT development and consider recommendations of the Advisory Board. Continue Reading NIST Report and Recommendations on Fostering Development of the Internet of Things
NYDFS Issues Industry Guidance on Risks Arising from Artificial Intelligence
On October 16, 2024, the New York Department of Financial Services (“NYDFS”) issued an industry letter (the “Guidance”) highlighting the cybersecurity risks arising from the use of artificial intelligence (“AI”) and providing strategies to address these risks. While the Guidance “does not impose any new requirements,” it clarifies how Covered Entities should address AI-related risks as part of NYDFS’s landmark cybersecurity regulation, codified at 23 NYCRR Part 500 (“Cybersecurity Regulation”). The Cybersecurity Regulation, as revised in November 2023, requires Covered Entities to implement certain detailed cybersecurity controls, including governance and board oversight requirements. Covered Entities subject to the Cybersecurity Regulation should pay close attention to the new Guidance not only if they are using or planning on using AI, but also if they could be subject to any of the AI-related risks or attacks described below. Continue Reading NYDFS Issues Industry Guidance on Risks Arising from Artificial Intelligence
CISA and FBI Publish a Secure by Design Alert to Eliminate Cross-Site Scripting Vulnerabilities
On September 17, 2024, the U.S. Cybersecurity and Infrastructure Security Agency (“CISA”) and the Federal Bureau of Investigation (“FBI”) published a Secure by Design Alert, cautioning senior executives and business leaders to be aware of and work to eliminate cross-site scripting (“XSS”) vulnerabilities in their products (the “Alert”). XSS vulnerabilities allow “threat actors to inject malicious scripts into web applications, exploiting them to manipulate, steal, or misuse data across different contexts.” Continue Reading CISA and FBI Publish a Secure by Design Alert to Eliminate Cross-Site Scripting Vulnerabilities
CISA Issues Notice of Proposed Rulemaking for Critical Infrastructure Cybersecurity Incident Reporting
On March 27, 2024, the U.S. Cybersecurity and Infrastructure Security Agency’s (“CISA”) Notice of Proposed Rulemaking (“Proposed Rule”) related to the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (“CIRCIA”) was released on the Federal Register website. The Proposed Rule, which will be formally published in the Federal Register on April 4, 2024, proposes draft regulations to implement the incident reporting requirements for critical infrastructure entities from CIRCIA, which President Biden signed into law in March 2022. CIRCIA established two cyber incident reporting requirements for covered critical infrastructure entities: a 24-hour requirement to report ransomware payments and a 72-hour requirement to report covered cyber incidents to CISA. While the overarching requirements and structure of the reporting process were established under the law, CIRCIA also directed CISA to issue the Proposed Rule within 24 months of the law’s enactment to provide further detail on the scope and implementation of these requirements. Under CIRCIA, the final rule must be published by September 2025.
The Proposed Rule addresses various elements of CIRCIA, which will be covered in a forthcoming Client Alert. This blog post focuses primarily on the proposed definitions of two pivotal terms that were left to further rulemaking under CIRCIA (Covered Entity and Covered Cyber Incident), which illustrate the broad scope of CIRCIA’s reporting requirements, as well as certain proposed exceptions to the reporting requirements. The Proposed Rule will be subject to a review and comment period for 60 days after publication in the Federal Register. Continue Reading CISA Issues Notice of Proposed Rulemaking for Critical Infrastructure Cybersecurity Incident Reporting
NIST Publishes the Cybersecurity Framework 2.0
On February 26, 2024, the U.S. National Institute of Standards and Technology (“NIST”) published version 2.0 of its Cybersecurity Framework. Originally released in 2014 and updated in 2018 and now 2024, the NIST Cybersecurity Framework (“CSF” or “Framework”) “offers a taxonomy of high-level cybersecurity outcomes that can be used by any organization — regardless of its size, sector, or maturity — to better understand, assess, prioritize, and communicate its cybersecurity efforts.” Globally, organizations, industries, and government agencies have increasingly relied upon the Framework to establish cybersecurity programs and measure their maturity. NIST had proposed some potentially significant updates to the Framework in a Concept Paper published on January 19, 2023, which this Version 2.0 follows. Continue Reading NIST Publishes the Cybersecurity Framework 2.0
Department of Commerce Issues Proposed Rule to Regulate Infrastructure-as-a-Service Providers and Resellers
On January 29, 2024, the Department of Commerce (“Department”) published a proposed rule (“Proposed Rule”) to require providers and foreign resellers of U.S. Infrastructure-as-a-Service (“IaaS”) products to (i) verify the identity of their foreign customers and (ii) notify the Department when a foreign person transacts with that provider or reseller to train a large artificial intelligence (“AI”) model with potential capabilities that could be used in malicious cyber-enabled activity. The proposed rule also contemplates that the Department may impose special measures to be undertaken by U.S. IaaS providers to deter foreign malicious cyber actors’ use of U.S. IaaS products. The accompanying request for comments has a deadline of April 29, 2024.Continue Reading Department of Commerce Issues Proposed Rule to Regulate Infrastructure-as-a-Service Providers and Resellers
Covington’s Fifth Annual Technology Forum – Looking Ahead: New Legal Frontiers for the Tech Industry
Technology companies are grappling with unprecedented changes that promise to accelerate exponentially in the challenging period ahead. We invite you to join Covington experts and invited presenters from around the world to explore the key issues faced by businesses developing or deploying cutting-edge technologies. These highly concentrated sessions are packed…
Continue Reading Covington’s Fifth Annual Technology Forum – Looking Ahead: New Legal Frontiers for the Tech IndustryNew York Department of Financial Services Finalizes Second Amendment to Cybersecurity Regulation
Earlier this month, the New York Department of Financial Services (“NYDFS”) announced that it had finalized the Second Amendment to its “first-in-the-nation” cybersecurity regulation, 23 NYCRR Part 500. This Amendment implements many of the changes that NYDFS originally proposed in prior versions of the Second Amendment released for public…
Continue Reading New York Department of Financial Services Finalizes Second Amendment to Cybersecurity Regulation