The Massachusetts AG Has Not Forgotten About the State’s Data Security Regulations – and Neither Should You

more+
less-

Just because we have not heard much about the Massachusetts data security regulations in the past year does not mean that the regulations should be forgotten. On Monday, March 28, 2011, the Massachusetts Attorney General (“AG”) entered into a settlement with the owner and operator of several Boston bars and restaurants with respect to a security breach and related data security failings. Importantly, the Massachusetts data security regulations played a prominent role in the settlement.

According to the Massachusetts AG’s complaint, the restaurant chain experienced a data breach in April 2009 in which malware on its computer systems allowed hackers to access customer payment card information. Moreover, the AG’s complaint alleged, among other things, that the restaurant chain did not follow a number of basic computer security precautions, including, for example, failing to change the default usernames and passwords on its computer system and permitting employees to share common usernames and passwords. Although the lack of these controls occurred before the effective date of the Massachusetts data security regulations, this conduct would appear to have stood in stark contrast to the controls required by the regulations (let alone basic industry best practices).

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:

more+
less-

Morrison & Foerster LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×