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Legal developments in data, privacy, cybersecurity, and other emerging technology issues
Posts by Denise M. BarnesPartnerDenise Barnes is a former U.S. Department of Justice (“DOJ”) Trial Attorney who focuses her practice on compliance, white collar and regulatory investigations, and complex commercial litigation. She represents clients in ...
On Sept. 5, the U.S. Department of Justice announced its settlement with Verizon Business Network Services LLC, a Verizon Communications Inc. subsidiary, in which Verizon agreed to pay $4.1 million to settle certain False Claims Act allegations related to cybersecurity.
The settlement resolves allegations that Verizon's Managed Trust Internet Protocol Service, or MTIPS, which was designed to provide federal agencies with secure connections to public internet and other networks, did not satisfy certain cybersecurity controls related to contracts with the U.S. General Services Administration from 2017 to 2021.
Last week, the Consumer Financial Protection Bureau (“CFPB”) took a significant step forward in enhancing consumer control over private financial data when it launched a rulemaking process under Section 1033 of the Dodd–Frank Wall Street Reform and Consumer Protection Act (“Section 1033”). Section 1033 requires the CFPB to implement a rule to allow consumers to access their financial information. Currently, there is no duty under Section 1033 to maintain or keep any information about a consumer. The CFPB has yet to adopt a rule relating to data access, despite its authority to do so.