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Data Breaches: Why Prevention Isn't Enough

BY Michael Purcell
January 31, 2015

Cyberattacks and data breaches are an all-too-common fact of modern business. The news is full of stories about major U.S. banks and retailers being hacked, and the perpetrators are stealing the financial and personal information of clients, customers and others. While the masterminds and motives behind such attacks are not always immediately apparent, one thing is clear: Counsel must understand that traditional network security approaches are no longer enough. Firewalls and intrusion-prevention systems have become mere nuisances for determined hackers. In many instances, the malware and method of attack are more sophisticated than normal preventative measures can account for. This means that companies must accept the fact that data breaches could happen to them, regardless of the strength of their protective approaches.

That's why it is more important than ever that organizations be prepared to respond to a data breach. When asymmetric attacks occur, companies and institutions need to respond effectively, and the legal department must be closely involved. It should be proactively planning and thinking about many different issues. What kind of incident response plan should be in place following a breach? What should be included in the plan? Who should execute the plan? What is the proper blend of legal and IT responsibilities? How will the company respond to the inevitable lawsuits and investigations that follow?

Counsel needs to take proactive measures to ensure that they ' and their clients ' will be ready in the event that a data breach occurs.

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