Cybersecurity law moves quickly and what may have been dead in one legislative session can come back in another to change the regulatory landscape in unexpected ways. Case in point, the NY SHIELD Act, S5575A, which passed in the New York Senate this week.
On April 16, 2019, the Securities and Exchange Commission (“SEC”) Office of Compliance Inspections and Examinations (“OCIE”) issued a Risk Alert following OCIE’s examinations of investment advisers and broker-dealers. The Risk Alert identified some of the key compliance issues in the recent examinations related to Regulation S-P, which is the SEC’s principle rule covering privacy notices and policies and practices required to safeguard customer records and information.
On October 30, 2018 the New Jersey Attorney General entered into a Final Consent Judgment with ATA Consulting, doing business as Best Medical Transcription, and its owner, Tushar Mathur (collectively “Defendants”), resolving a 2016 security breach that resulted in the publication of personal health information of over 1,600 New Jersey residents. As a result of the Consent Judgment, Defendants were fined $200,000 and Mr. Mathur was permanently banned from managing or owning a business in New Jersey.
All entities covered under the Health Insurance Portability and Accountability Act (HIPAA) know that shielding protected health information from potential unauthorized disclosure needs to be a priority.