Interesting legal challenges ahead
Now that we're on Michael Jackson verdict watch, here are some other legal issues to weigh while we wait to see if the pop star goes to the pokey (no pun intended).
For a long time now, the IT industry has insisted the insurance and legal communities, not politicians or consumers, would ultimately prompt companies to be more secure. With this week's notice from Citigroup that a UPS carrier lost private data on 3.9 million customers, that certainly remains real. Insurance companies are beginning to finalize actuaries to determine just how much in premiums it takes to cover the costs of these losses, thefts and attacks. Unfortunately, the costs will be borne by customers, much like medical malpractice insurance today. Lawyers also are chomping at the bit to get at some of these companies, and this week the rumor is that a precedent-setting liability lawsuit is about to be launched.
There's already one case that was initially dismissed as frivolous but now is being closely watched. It involves a Miami businessman suing Bank of America for not protecting his computer against malicous code known as a Trojan horse that was installed through his error. The attackers wiped out his online bank account. On its face, it would appear this guy's an idiot for clicking or somehow downloading the offending virus. But here's the thing: when he signed up for online banking, BoA said it was safe when it knew that it really wasn't. Can a bank proclaim your money and transactions are protected when it has no control over the use of your machines? Think about it.
For a long time now, the IT industry has insisted the insurance and legal communities, not politicians or consumers, would ultimately prompt companies to be more secure. With this week's notice from Citigroup that a UPS carrier lost private data on 3.9 million customers, that certainly remains real. Insurance companies are beginning to finalize actuaries to determine just how much in premiums it takes to cover the costs of these losses, thefts and attacks. Unfortunately, the costs will be borne by customers, much like medical malpractice insurance today. Lawyers also are chomping at the bit to get at some of these companies, and this week the rumor is that a precedent-setting liability lawsuit is about to be launched.
There's already one case that was initially dismissed as frivolous but now is being closely watched. It involves a Miami businessman suing Bank of America for not protecting his computer against malicous code known as a Trojan horse that was installed through his error. The attackers wiped out his online bank account. On its face, it would appear this guy's an idiot for clicking or somehow downloading the offending virus. But here's the thing: when he signed up for online banking, BoA said it was safe when it knew that it really wasn't. Can a bank proclaim your money and transactions are protected when it has no control over the use of your machines? Think about it.
