Survey Predicts Surge In Cybersecurity Litigation

A survey asking in-house attorneys what litigation trends they foresee finds cybersecurity and data protection issues to be the main drivers of new disputes over the next few years. Sixty-six percent see their companies as more exposed to cybersecurity disputes as of 2021, up from less than half in 2020. They cite risk factors including storage of greater volumes of data, a changing regulatory landscape, and doubts about their employees ability to identify and prevent cyber-attacks. Respondents in all industries referenced the global proliferation of data protection regulations as a risk factor. The SEC is proposing a rule that, among other requirements, will require businesses to conduct periodic cyber-risk assessments, implement controls designed to minimize user-related risk and prevent unauthorized access to IT systems, conduct routine systems monitoring, and oversee third-party service providers who have access to IT systems. Investment in expensive training and new tools to strengthen security is growing.