Alan S. Wernick Shares Insights on Twitter's Recent Misuse of Customer Data, Increased Cyber Insurance Premiums, and Cyber Resilience in ABA's Business Law Today Month-In-Brief
06.21.22
In the American Bar Association’s Business Law Today publication and Month-In-Brief: Internet Law & Cyber-Security section, Alan S. Wernick provided an analysis of ongoing litigation surrounding Twitter’s security data, recent updates on cyber insurance premiums and the 2022 Marsh and Microsoft Cyber Risk Survey results.
In “Twitter’s Deceptive Use of Customer Account Security Data Results in $150 Million Fine Plus Additional Restrictions,” Alan outlined the Federal Trade Commission’s complaint against Twitter for its alleged misuse of personal data for advertising and the Joint Motion for Entry of Stipulated Order signed by Twitter’s counsel. The lawsuit serves as a warning to the request for consumer information, reminding businesses to:
- Be transparent in the purpose of collecting personal data (including email addresses and phone numbers).
- Only collect information consistent with privacy laws.
- Create strong internal compliance controls to ensure use of personal information is limited and consistent with the stated purpose for collecting the data.
Alan also discussed the recent Council of Insurance Agents & Brokers’ Commercial Property/Casualty Market Index for Q4 in 2021. The report noted an average premium increase of 34.3% for cyber insurance. Alan notes that the frequency and severity in cyber claims could be the cause of this significant change in premiums. Additionally, he outlined stricter requirements for businesses seeing insurance for cyber risks including:
- Employee phishing training
- Multi-factor authentication applications.
- Adequate backups.
Read Alan’s brief analysis regarding this topic here.
Following these insurance premium updates; Alan outlines the results of Microsoft and Marsh McLennan’s recent “The State of Cyber Resilience” report. For businesses, the main takeaways of this report offer data supporting the necessity of cyber insurance and cyber risk control.
Read Alan’s brief analysis regarding this topic here.
Alan is a business transactions attorney and advocate, with a background in accounting and technology, focusing on matters of information technology, privacy/cybersecurity and intellectual property law. He is a Martindale-Hubbell AV rated attorney admitted to practice in IL, OH, NY and DC. His in-depth experience as a seasoned legal counselor and advocate, arbitrator and mediator and as a bridge builder among business, technology and intellectual property communities is well respected by individuals across professional industries.
