Business Law Section PRMCLE Meeting Location: Attorney Resource Center
Date: June 10, 2019
11:45 AM – Noon Welcome/Introductions Peter Evans, Section Chair
A few words from One Legal today’s lunch sponsor.
Noon – 1:00 PM Program
Cybersecurity for Small-to-Mid-Sized Law Firms. Michele A. Piazza of MP Global Ventures, LLC
Speaker’s Bio
See attached
Presentation Summary
Michele will discuss the 2019 Cybersecurity trends. She will also discuss the lessons learned from breaches and attacks. There will be a discussion regarding cost of data breaches, compliance, privacy, security, risks and tips.
Next Meeting: As a sequel to our 6/10/19 Program that covered “Cybersecurity for Small to Midsized Law Firms”, the 7/16/19 Program is “A Lawyer’s Guide to Responding to a Data Breach by Reena R. Bajowala and Elizabeth R. Bacon”. This is the “Part 2” that advises lawyers on what to do to navigate their business clients through a data breach or other cyber incident. Click here to register for the July 16, 2019 meeting. https://www.dcba.org/events/EventDetails.aspx?id=1246092&group=
DCBA Events: June 13, 2019 Ask a Lawyer Help Desk. Rm. 2017– Judicial Center. 1:00 p.m. to 4:30 p.m.
June 20, 2019 11th hour PRMCLE Seminar 1:30 p.m.-5:00 p.m. @ Granite City, Naperville
June 20th Happy Hour @ Granite City, Naperville at 5:30 p.m.
June 27, 2019 Ask a Lawyer Help Desk Rm. 2017- Judicial Center. 1:00 p.m. to 4:30 p.m.
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Michele Piazza is a Global IT Executive who brings a unique blend of technology and business leadership experience as your strategic trusted advisor and security partner. Michele is the Founder, Principal & CXO of MP Global Ventures, LLC, a woman-owned, independent, business focused security & technology management advisory firm. Michele aligns with C-Level IT, Security, Business and Operations executives to provide sustainable technology , risk management , and compliance solutions, to meet your budget. Born in Indiana, Michele came from a family of 5 girls where her parents instilled independence, a strong work ethic, integrity, problem solving, and service as core values. Michele
began her technology career as a young programmer at US Steel in Chicago, where she was selected for a two-year international assignment in Venezuela as part of US Steel’s Consulting technology team. Her experience continued to blossom through various leadership positions in technology at Beatrice Foods Company, Citibank and American National Bank. She was instrumental in 5 mergers: American National Bank into First Chicago, First Chicago NBD, Bank One, WaMu, and finally JPMorgan Chase. Prior to launching MP Global Ventures, LLC, she had a 20+year career at JPMorgan Chase as a Senior Vice President. She progressed through multiple management positions in both technology and business. Her experience reflects direct management of all aspects of technology, including system development, operations, business intelligence, project management & governance, mergers & acquisitions, vendor management, risk management, security and compliance, domestically and globally. Michele was recently featured in the CBS Small Business Pulse: http://smallbusinesspulse.cbslocal.com/2015/08/17/interaction-collaboration-successful-business/ Michele holds an Executive MBA from Kellogg School of Management, Northwestern University and a Bachelor’s degree from Saint Mary’s College, Notre Dame, IN. She is an active member of SIM (Society of Information Management), ISACA (Information Systems Audit & Control Association), SWIT (Senior Women in Technology,) , ISSA (Information Systems Security Association) and InfraGard. Michele became a YWCA Metropolitan of Chicago Board Member in July 2105 and brings her energy and resources to empower women through the YWCA technology programs: techGYRLS, Innovation & Technology Institute, & Developing Digital Diversity. She is also an active member of the YWCA Audit and Enterprise Risk Management Committees. Michele recently accepted a Board of Director position with the Hispanic Innovation Center of Chicago (HIC) to collaborate with international Latino firms to understand the Chicago technology marketplace and provide access to experienced Hispanic technology professionals, while actively investing in the Pilsen / Little Village communities. She is an Advisory Board Member for the Naperville based high-tech incubator hub88. Michele is an avid runner and achieved “Marathon Maniac” status following the completion of her 8th marathon. She enjoys yoga, cycling, hiking and international travel. She recently laced up her boots to hike Mt Kilimanjaro in January 2016 with her husband, David. She resides in the western suburbs with her husband David and their blended family of 6 children.
Cybersecurity for the Legal Community
DuPage County Bar Association
Michele A. Piazza
MP Global Ventures, LLC
06.10.19
Cybersecurity for Small-to-Mid-Sized Law Firms
Learning Objectives:
Key Considerations for Law Firms
Data: Physical and Digital Controls
”Least Privilege”
2FA
Encryption
Segregation of Duty
3rd and 4th Party Supplier Relationships
Assessments using Industry Frameworks
Resiliency
Business Impact Analysis (BIA) /Business Continuity Plan (BCP)
Disaster Recovery Plan (DCP)
Incident Response Plan (IRP)
Crisis Management Plan (CMP)
Copyright © 2019 MPGV. No part of this presentation may be reproduced in any form without prior authorization.
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Agenda Lessons Learned from Breaches/Attacks
Cost of a Data Breach – 2018 & Beyond
2019 Cybersecurity Trends
Law Firms’ Digital Treasure Chest
Cybersecurity Maturity: Where are you?
Identify, Protect, Detect, Respond, Recover
Industry Frameworks for Baseline Assessments
NIST Cybersecurity Framework
CIS Critical Security Controls
The Fundamentals – Key Security Risks in the Workplace
Looking at Defense In-Depth
Cybersecurity Risk Management Checklists
General
Email & Data Access
Networks
Takeaways & Best Practices for Effective Security
MP Global Ventures, LLC – Services
Q&A
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Lessons Learned from Breaches/Hacks
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Marriott /Starwood Breach
383Million Guest Records.
-----------------------
Pre-Merger, Starwood Network had been breached,
guest information copied and encrypted (made ready
to remove/extract) for 4 Years.
Post-Merger, Marriott detected anomaly, decrypted
and confirmed sources.
Quest Diagnostics:
11.9 Million Patients’ Information Exposed.
-----------------------
Optum360 Collections Contractor to Quest
AMCA Sub-Contractor to Optum360
Equifax Data Breach Costs Hit
$1.4B
Massive 2017 Breach Continues to
Bite the Credit Reporting Giant's
Bottom LineMathew J.
Schwartz (euroinfosec) • May 13,
2019
Financial Loss
Reputational Damage to Client, Firm, Customers
Professional Misconduct
Damage to economic infrastructure
Threats to National Security
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Cost of a Data Breach – 2018 & Beyond
Records
Records Exposed: average = 12M, median = 1K
Per-Record Cost1: average = $308, median = $42 58
Organization (Company) Size
Predominantly SMEs: 85% less than $2B in Revenue
Overall Cost
Total Breach Cost: average = $603 9K, median = $61 2K
Crisis Services Cost: average = $307K, median = $40K
Large Company Breach: average = $8 8M, median = $5M
Legal Cost
Defense: average = $106K, median = $17K
Settlement: average = $224K, median = $58K
Regulatory Defense: average = $514K, median = $84K
Regulatory Fines: average = $18K, median = $11K
Business Interruption Cost
All Cost: average = $2M, median = $50K
Recovery Expense: average = $957K, median = $30K
Sectors Affected (top 4)
Professional Services: average = $168K, median = $43K
Healthcare: average = $555K, median = $68K
Financial Services: average = $854K, median = $50K
Retail: average = $1 2M, median = $94K
Cause of Loss (top 4)
Hackers: average = $1 05M, median = $114K
Ransomware: average = $229K, median = $53K
Malware / Virus: average = $1 2M, median = $93K
Lost / Stolen Laptop / Device: average = $195K, median = $41K
Source: NetDiligence 2018 Claims Study
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2019 Cybersecurity Trends
Trends
Automation supports and improves cyber resilience (prevent, detect, contain and respond
Collaboration between Privacy Leader and cybersecurity improves resilience
Privacy Role and Compliance Roles are increasingly critical - GDPR,CCPA, State Data Protection Regulations
Zero Trust Model Cloud Security Solutions
C-Suite Awareness on metrics and cyber resilience to increase funding to increase stronger security posture
Evolving Threats & Challenges
Malvertising
Business Email Compromises (BEC)
Ransomware, Ransomware, Ransomware – Mobile Ransomware up 33% ; Enterprise up 12%
Phishing, Malware and Botnets – Malicious URL’s up 7.8%, 48% of malicious email attachments are office files , 1000% increase in malicious PowerShell scripts
3rd /4th Party Supply Chain Attacks –up 78%
IOT Vulnerability- greater attack surface via routers, connected cameras, printers, Smart TV, Smart Devices,
FORMJACKING- 4800 = average number of websites compromised each month; 3.7M blocked each month
CryptoJacking –trending down but not out; 4x more events blocked in 2018 than 2
Poorly Secured Cloud Databases- 70 million records leaked or stolen from AWS S3 buckets
Copyright © 2019 MPGV. No part of this presentation may be reproduced in any form without prior authorization.
Source: Ponemon Institute ,2019, Fourth Annual Study on The Cyber Resilient Organization
Source: Symantec Internet Security Threat Report, Volume 24, Feb 2019
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Law Firms’ Digital Treasure Chest
Personally Identifiable Information (PII)
IPO and /or M&A Information
Asset Inventories
Litigation Strategies
Financial Account Details
Estate Planning Records, Financials and Investments
Health Information (HIPAA)
Business Strategies
IP, including Trade Secrets, patent applications
Confidential Witness Information
Drug Study Results
Billing Systems
Litigation Claims
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Cybersecurity Maturity: Where are You?
Optimizing
Elements of Effective Cybersecurity Culture of Security Legal Requirements Training and Education Policy, Procedure and Controls Monitor and Auditing Response and Documentation Information Management Accountability
Ad Hoc • Informal • Reactive • Inconsistent performance
Developing
• Likely repeatable • Some consistency • Lacks rigorous process discipline,
reactive
Practicing
• Defined controls • Documented standards • Consistent performance
• Effective controls • Uses process metrics • Targeted improvement
Leading
• Integrated strategies • Innovative changes • Seamless controls • Continuous
Improvement
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Identify, Protect, Detect, Respond, Recover
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1.Does your firm use Two Factor Authentication (aka 2FA)?
2.How often does the firm update its operating system?
3.What’s encrypted and how?
4.Do you use a password manager to set strong passwords?
5.Do you regularly educate your employees about security? If so, how?
6.What’s your security insurance coverage? What and whom does it cover?
7. Do you have a disaster recovery and incidence response plan? What
does your physical security look like?.
8.Do you conduct regular security risk assessments?
9. What type of controls are in place for access and identity management.
Authentication and access controls are the first lines of defense. They are
the “keys to the kingdom”—controlling access to networks, computers,
and mobile devices
10.Remote Access – VPN, Remote Desktop
11.Wireless Networks- Guest, Firm, How is access granted?
Source: AboveTheLaw: What You Need To Know About Law Firm Cybersecurity
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Use Industry Frameworks for Baseline Assessment
NIST – National Institute of Standards and Technology
ISO – International Standards Organization
CIS – Center for Internet Security
FISMA – Federal Information Security Management Act of 2002
SANS – ‘SysAdmin, Audit, Network and Security’ Institute
CSA - Cloud Security Alliance
PCI – Payment Card Industry [Data Security Standard]
National Cybersecurity Center of Excellence
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NIST Cyber Security Framework (CSF)
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CIS Critical Security Controls
Auditing, Assessing,
Analyzing:
A Prioritized
Approach using the
Pareto Principle
80/20
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The Fundamentals - Key Security Risks in the Workplace
Failure to cover cybersecurity basics
Not understanding what generates corporate cybersecurity risks
Lack of a cybersecurity policy
Confusing compliance with cybersecurity
The Human Element– the weakest link
Bring your own device policy (BYOD)
Cloud Providers
Funding, talent and resources constraints
Lack of information security and awareness training
Lack of a recovery plan
Lack of data classification and destruction measures
No Metrics – need to monitor, measure & report
IOT- Asset Inventory
Chasing the wrong priorities
Lack of Cyber Risk Management as a cross-functional practice
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Looking at Defense in-Depth
The Data is the key to the kingdom.
Know how long to keep the Data.
An unenforced policy is a suggestion.
Privacy Laws vary and need to be considered. If
a Control can’t be proved, it doesn’t exist.
Confidentiality, Integrity, Accessibility.
Know who has access to your Assets.
Know the Value of the data being protected.
7 lenses for your data. (Plus the Data.)
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Source: ISSA CISO Forum, ”Risk v Security-Defense in Depth”; Philip Mahan ,2015
Cybersecurity Risk Management Checklist – General
Establish GRC – Cyber Committee, Benchmarks and Reporting
Establish a baseline with periodic Cyber Risk Assessment; update controls and risk profile
Username and Password Protection
IAM -Control Administrative Privileges and Access; monitor and review Qtrly
Scheduled and Automated, Routine Software Updates and Patching
Implement and Monitor: Anti-Virus, Email, Email Attachments and Website Filters
Only use Secure Standard Operating Systems; Remediate XP, Window 7 to Windows 10 or
current OS
Perform Regular Backups, Test Backups and Encrypt ‘crown jewels’
Provide Qtrly Cybersecurity Awareness Education
Oversight, review & due diligence of external 3rd & 4th parties, business, technology &
operations – Third Party Vendor Management Program (TPVMP)
Examine and Assess Cyber Hygiene of Clients, M&A candidates, Vendors, Partners,
Seller Firm
Adopt a MDM , Mobile Device Management Policy and Encryption Policy
Implement 2FA, Two-factor Authentication on all devices, especially BYOD
Develop and enforce Policies & Procedures ; Information Security Policy
Define, Plan and Test > Business Continuity, Disaster Recovery, Incident Response and Crisis
Plans
Establish a Culture of Awareness, Accountability and Responsibility
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Cybersecurity Risk Management Checklist –
Email and Data Access
Secure Your Websites- ‘https everywhere’
Passwords should be complex phrases and changed from the vendor defaults on all software and devices
Encrypt & Segregate ‘sensitive’ and critical Data ‘at rest and ‘in transit’
Cloud Providers- conduct 3rd & 4th Party Risk Assessment and due diligence
Social Engineering – Phish , Vish and Smish your workforce (Leadership especially)
Ensure logging is adequate, monitored and retained with appropriate level of alerts
Limit Access to Credentials; Validate Quarterly
Implement Multifactor/2Factor Authentication-authenticates : Who you are, What You Know or What You Have Access to
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Cybersecurity Risk Management Checklist –
Network
Define a company policy and controls for Network Access,
Updates, Resiliency
Secure Online Activities; limit accessible websites
Filter Downloads- only trusted sites; downloads need to be scanned
Ensure Routine Backups, with redundancy offline
All devices must be authorized to connect to the network
Establish a Social Media Policy and Enforce
Cybersecurity Awareness Education
VPN only for sensitive and critical information
Implement Intrusion Detection and prevention mechanisms
Whitelist the Applications to only allow trusted software
WiFI- Enable encryption and segregate: Guest, Internal and Confidential
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Takeaways & Best Practices for Sustainable Cybersecurity Establish Leadership to Foster a Culture of Cybersecurity
Adopt a Risk-Centric Approach to Cybersecurity- Communicate the Big Picture
Know Your Risk
Have a third party conduct an independent risk assessment to determine risks,
key threat vectors, mitigating controls and ability to recover
Classify your Data
Obtain Inventory of Assets, The inventory should include both technology and
business process. You can’t protect it if you don’t know that you have it, where
it is, how it is used and what the dependencies are
Assess Your Cybersecurity Hygiene
Establish strong physical security
Focus on the Basics
Policies & Procedures
Educate the workforce, test, re-educate
Phish EVERYONE, including C-Suite
Define and enforce password policy with security questions
Patch Routinely, Backup Often and Segment Backups
Implement 2FA
Signature Based Antivirus /Anti-malware
Encrypt at Rest and in Transit (Air-gap computers , as needed)
Ensure Adequate logging; retain > 205 days
Explore Cybersecurity Insurance – make sure it covers productivity loss, data restoration,
technical and legal expenses and correlated to risk assessment findings
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How Can MP Global Ventures Help You?
MP Global Ventures, LLC – Services Cybersecurity, Risk Management, Privacy & Technology Advisory Services
Engagement
Cybersecurity Strategy Definition
Cybersecurity Assessment Based on Industry Framework
Roadmap to Remediation
Oversight & Implementation of Remediation Program
vCISO – Chief- Information-Security- Officer-as-a-Service
Virtual ,Trusted Advisory Security Services
vCIO
Virtual, Trusted Advisory Chief Information Officer Services
Other Offerings
Third Party Vendor Management Program
Cybersecurity Policy ,Procedure and /or Guideline Review and Development
Disaster Recovery Planning (DRP)- Processes, resources, and capabilities to reestablish ongoing
operational and system requirements
Business Continuity Plan and Business Impact Analysis- BIA/BCP- Facilitates establishment of operations
at an alternate site, until the firm can resume operations
Incident Response Plan (IRP )– Plan, Policy, Playbook and tabletop test to immediately respond to a
cyber incident, Data Loss, Ransomware, and Outages
Crisis Management Plan (CRP )– Plans to address immediate threats and catastrophe to ensure safety,
business resiliency and technology resiliency
Identity Access Management
Cybersecurity Risk Management Program and Planning
Cybersecurity Budget & Planning
Cybersecurity Awareness Training
Steering Committee/ Board Presentations
Partner and Referral Program
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Questions?????
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Business Law Section Council – LEGAL UPDATE – June 2019
Case Law Update
Gasic v. Marquette Management, Inc., 2019 IL App (3d) 170756 (Opinion Filed May 17, 2019)
HOLDING: The Appellate Court answered the certified question presented to it in the affirmative, finding that a legal entity (such as a corporation, for example) can under certain circumstances be considered a “person” for the purpose of imposing civil liability on the legal entity itself under the Gender Violence Act.
The plaintiff sued an individual, Jose Canales Jr. (“Canales”), and the property management company for whom he worked as a maintenance engineer, Marquette Management, Inc. (“Marquette”), for damages stemming from a sexual assault that Canales committed against the plaintiff in her apartment. That apartment was part of a complex that Marquette managed. One of the counts of the plaintiff’s complaint sought liability against Marquette under the Gender Violence Act (the “Act”). The trial court dismissed the claim against Marquette under the Act with prejudice, finding that artificial entities are not “persons” who can be subject to liability under the Act, but permitted an interlocutory appeal to allow the appellate court to answer the certified question as to whether a corporation could in fact be subject to liability under the Act. In finding that the statutory duty imposed under the Act on “persons” could include artificial entities, the appellate court principally relied on Section 1.05 of the Statute on Statutes which provides that “persons” can apply to corporate and political bodies as well as individuals, and the growing body of caselaw treating artificial entities like natural persons.
Wei Quan v. Arcotech Uniexpat, Inc., 2018 IL App (1st) 180227 (Opinion Filed December 10, 2018, Posted May 17, 2019)
HOLDING: The appellate court reversed the dismissal by the trial court (pursuant to 735 ILCS 5/2-619) of the plaintiff’s conversion claim against Craig Piatti (“Piatti”), the president and executive director of the corporate co-defendant, Arcotech, finding no affirmative matter that precluded plaintiff from proceeding with his conversion claim against Piatti
The plaintiff’s complaint alleged that he entered into a written service agreement (“Agreement”) with Arcotech, which Agreement was signed by Piatti in his capacity as executive director and which Agreement indicated that a portion of the money paid by the plaintiff would be refundable if Arcotech could not secure an internship offer for the plaintiff. No internship offer came and Arcotech and the plaintiff entered into a refund agreement, but Arcotech never paid the refund and was eventually dissolved. Piatti argued that the refund
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claim against him was a mere general obligation of Arcotech and the amount claimed was not subject to some special treatment by Arcotech. Piatti also claimed that, as an officer, he was generally not responsible for corporate debts and plaintiff did not allege any facts showing he should be treated differently. The appellate court found that plaintiff had plead the elements of a conversion claim against Piatti based upon his allegedly active participation in the unauthorized deprivation of plaintiff’s money, based upon the fact that, after the passage of the 120-day period in the refund agreement for the return of the money, Arcotech had no basis to continue to withhold the money, and based upon the fact that there was no debtor-creditor relationship between Piatti individually and the plaintiff. Futher, the court found that a claim for the conversion of money can be brought even if the money in question is not separately earmarked or segregated.
Legislative Update
Illinois Public Act 101-0008 (effective 1/1/21, conditioned upon the Illinois voters approving
a constitutional amendment to allow a graduated income tax structure in November of 2020)
This law changes the rate structure for state income taxes imposed upon individuals, estates and
trusts. Currently, there is a flat 4.95% income tax on all net income. This law would change that
structure to a graduated income tax rate. Taxpayers would be taxed at 4.75% for their first $10,000
in net income, at 4.9% for the remainder of their net income up to $100,000, and at 4.95% for the
remainder of their net income up to $250,000. Any taxpayers with more than $250,000 in net
income will pay taxes at rates between 7.75% and 7.99% on any excess net income over $250,000,
depending on the exact amount of their excess net income and their tax status.
Because the Illinois Constitution currently calls for income tax to be imposed on a “non-graduated
rate,” this law will not go into effect at all if voters do not approve a change to the Illinois
Constitution to permit a graduated income tax rate.
Submitted by: Desmond Curran, a partner with Sullivan Hincks & Conway in Oak Brook
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Business Law Committee - Links for Committee Members
LinkedIn Group for Business Law Committee – DuPage County (IL) Bar Association
https://www.linkedin.com/groups/12013153
LinkedIn Group for DuPage County Bar Association
https://www.linkedin.com/groups/849357
Online Demand CLE on DCBA
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Illinois Institute for Continuing Legal Education (IICLE) and the DCBA
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ym.com/resource/resmgr/mcle_seminars/How_to_Access_OnDemand_CLE.pdf
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