- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2022-10-20T15:07:00
Do compliance officers need to worry about individual liability regarding data breaches? Yes, said two former federal prosecutors.
Compliance officers have many concerns. They fret about whether their firm’s internal controls are working properly to prevent fraud and other misconduct. They wonder whether their fellow employees, despite regular training and reminders, understand those controls and apply them properly. And they hope they will have the genuine and unqualified support of their firm’s senior management should things go sideways.
The case of the Uber chief security officer found guilty by a jury earlier this month on two felonies for covering up a massive data breach and misleading federal regulators opens up another potential individual liability issue executives handling cyber incidents face, according to legal experts.
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The former chief security officer of Uber Technologies was sentenced to probation by a federal court judge as punishment for his involvement in covering up a 2016 data breach that affected 57 million users.
Is the Department of Justice’s focus on individual accountability in white-collar crime cases encouraging companies to scapegoat their employees? A recent court filing in a $6 billion corporate fraud case could give company officers some sleepless nights.
Principal Associate Deputy Attorney General Marshall Miller called the conviction of a former Uber Technologies chief security officer on obstruction charges an “outlier” that should not discourage compliance officers from self-reporting violations.
American Water Works Company, which supplies drinking water and wastewater to 14 million customers, disclosed a breach of its computer networks and system due to a cybersecurity incident.
The global average cost of a data breach jumped to an all-time high for the second year in a row, but companies can reel in the ballooning drag on profits by adopting artificial intelligence, according to an IBM report.
The U.S. Department of Energy released supply chain cybersecurity principles meant to help strengthen key technologies used to manage and operate electricity, oil, and natural gas systems.
