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Cybersecurity and Data Breaches

This archive displays posts tagged as relevant to cybersecurity and data breach issues. You may also be interested in the following pages:

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Catch Our Rising Star!

Posted  10/17/19
Headshot of Attorney MRonickher
Law360 has tapped Michael Ronickher, partner in the whistleblower practice at Constantine Cannon, for its 2019 Rising Star series.  Law360 selected Mike for his work representing whistleblowers in all manner of reward programs, including his role in the groundbreaking cybersecurity whistleblower case against Cisco. What motivates Mike?  His clients: “Our clients are a real reason that we all get out of bed in...

September 12, 2019

Futures commission merchant Phillip Capital Inc. will pay $1.5 million to settle CFTC charges that its email system was breached and customer information accessed, with cyber criminals withdrawing $1 million in PCI customer funds.  The CFTC found that PCI failed to disclose the breach to its customers in a timely manner, and failed to have adequate cybersecurity policies and employee supervision.  CFTC

September 4, 2019

Google and its subsidiary, YouTube, will pay a record $170 million to the FTC and New York for allegedly violating the Children’s Online Privacy Protection Act (COPPA) Rule, which requires that websites and services directed at children under 13 obtain parental consent prior to collecting personal information.  According to the complaint, YouTube allegedly monitored, tracked, and served targeted ads to children under 13 without parental consent.  FTC, NY AG

Tech Whistleblowers Needed: Inquire Within

Posted  08/16/19
Facebook, Google, Samsung, Microsoft – we rely on large tech companies to safeguard our privacy and time and again they let us down. Yet tech companies are known to be highly selective employers, hiring the best and brightest and often paying better than companies in other industries. So how is it that they remain vulnerable to data breaches with such talent at their disposal? Cisco whistleblower James Glenn has...

Constantine Cannon Client’s Historic False Claims Act Settlement Against Cisco for Cybersecurity Fraud Makes Headlines

Posted  08/9/19
Numbers One and Zero for Coding with Word Hacked
If you’ve ever seen a heist movie, you likely know the scene. The technology-savvy member of a motley crew of criminals is huddled in a van or in a secret lair, surrounded by monitors. After a tense few minutes of maniacal typing, he or she yells “I’m in!” and hacks into the video surveillance system of the target hotel/casino/museum. In an instant, the cameras switch off or go to a pre-taped reel, and the...

Question of the Week — Should Companies Face Tougher Consequences for Cybersecurity Breaches?

Posted  08/8/19
Last month, a whistleblower represented by Constantine Cannon became the first person to win a False Claims Act settlement for cybersecurity fraud. The whistleblower, a former Cisco Systems employee, allegedly warned the company back in 2008 that its Video Surveillance Manager (VSM) system was highly vulnerable to attacks by hackers. The system’s flaws allegedly could have enabled hackers to delete video footage,...

August 1, 2019

The United States and 15 states have settled with Cisco Systems, Inc. for $8.6 million in the first cybersecurity whistleblower case ever successfully brought under the False Claims Act.  Cisco was accused of selling a video surveillance software to the U.S. government and state purchasers – including the military, FEMA, Homeland Security, and the Secret Service -- that could be easily exploited by hackers, and doing nothing to resolve or report the issue for years after the vulnerability was identified.  AG NY; AG VA

Cisco Systems, Inc. – Government Contract Fraud/Non-Conforming Product ($8.6 million)

Constantine Cannon represented whistleblower James Glenn against Cisco in the first cybersecurity whistleblower case ever successfully resolved under the False Claims Act. Cisco Systems, Inc. agreed to an $8.6 million settlement to resolve allegations it knowingly sold vulnerable video surveillance software to federal, state and local government agencies, exposing government systems to the risk of unauthorized access and the manipulation of vital information. The whistleblower, who worked in Europe for a Cisco partner, had reported critical security vulnerabilities in the software to Cisco, but Cisco had continued to sell the technology to government entities, including the District of Columbia and 15 states, despite the fact that the software failed to comply with FAR procurement standards that require basic cybersecurity controls, including those set forth by the National Institute of Standards and Technology.  Read more: Press Release; Whistleblower Insider

Cisco Whistleblower Represented by Constantine Cannon Wins First-Ever False Claims Act Settlement for Cybersecurity Fraud

Posted  07/31/19
Cisco company sign
In the first cybersecurity whistleblower case ever successfully litigated under the False Claims Act, Cisco Systems, Inc. has agreed to an $8.6 million settlement to resolve allegations it knowingly sold vulnerable video surveillance software to federal, state and local government agencies, exposing government systems to the risk of unauthorized access and the manipulation of vital information. This qui tam...

July 22, 2019

Credit reporting company Equifax has agreed to pay up to $700 million to resolve claims related to its 2017 data breach in a global settlement with the FTC, the CFPB, and 50 U.S. states and territories.  The settlement will be entered as a stipulated judgment in civil action pending against Equifax, alleging that Equifax failed to take adequate steps to secure its network and consumer data, despite being warned of network vulnerabilities, resulting in a hack that exposed the private information of almost 150 million people.  The settlement provides that defendant will pay between $300 million and $425 million to compensate affected consumers, in addition to a $100 million penalty to the CFPB and $175 million to the states.  Equifax also agreed to take specified steps to improve information security, subject to review by an independent third party.  FTC; CFPB; AG CA; AG NY; AG PA
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