A data breach resulting in the theft and use of customer credit card numbers results in significant expenses and penalties for the victim company. Many companies still do not have specific cyber liability coverage and thus can be on the hook for all expenses related to such a breach. The Sixth Circuit Court of Appeals recently held that such losses resulting from the cyber theft of customer data were recoverable under a commercial crime policy. Retail Ventures, Inc. v. Nat'l Union Fire Ins. Co., 691 F. 3d 821 (6th Cir. 2012).
Even the best laid plans for protecting against cyberliability can be frought with problems. Today, many Twitter users received a password reset e-mail message, making them believe their accounts had been compromised. Apparently, Twitter is pro-active and sends these reset e-mails when it believes there has been a problem with the account, including unauthorized access.
If you are a Connecticut business owner, you have the right to see the books!
A former UBS banker, Bradley Birkenfeld, has been awarded $104 Million by the IRS for his role as a whistleblower in an action by the IRS that ultimately has recovered $5 billion in unpaid taxes by Americans using UBS to hide money in Swiss bank accounts.