Skip to main content

Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About
Trending Topics
    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Entertainment & Media
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor, Employment, and Benefits
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations
    Industries

    View All

    • Aviation
    • Cannabis
    • Consumer
    • Energy
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Nonprofit Organizations
    • Real Estate
    • Sports & Stadiums
    • Technology
    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Environmental, Social, and Governance (ESG)

      We help clients create positive return on investments in people, products, and the planet.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    • Women in Dealmaking

      We provide strategic counsel on complex corporate transactions and unite dynamic women in the dealmaking arena.

    1. Home
    2. Insights
    3. Articles
    4. Navigating Cybersecurity Legal Issues: Funds Transfer Fraud and Emerging Issues

      Articles

    Article

    Navigating Cybersecurity Legal Issues: Funds Transfer Fraud and Emerging Issues

    Oct 14, 2024

    LinkedInX (Twitter)EmailCopy URL

    By Jason Kravitz

    Workplace training and advanced security measures are essential for companies aiming to mitigate the risks posed by cybersecurity threats, such as funds transfer fraud.

    As a cybersecurity attorney, I have witnessed firsthand the evolving threats and challenges that organizations face in today’s digital landscape. Here, I address some of the most pressing questions about cybersecurity and data privacy, providing insights into how businesses can better protect themselves.

    The cybersecurity landscape is fraught with challenges, but by staying informed and proactive, businesses can better protect themselves. Continuous education, advanced security measures, and a keen awareness of emerging threats are key to navigating this complex environment.

    What are the most significant cybersecurity threats organizations face today? How can they mitigate these risks?

    Without question, the number one threat facing every industry today is ransomware attacks. Despite predictions that these attacks would wane as defenses became more sophisticated, ransomware remains rampant and devastatingly expensive. In the United States, responding to a ransomware attack can be costly. For smaller companies, those costs can be existential.

    To mitigate these risks, cyber insurance is invaluable. However, traditional measures like employee training remain crucial. Human error is the most prevalent way cyberattacks succeed. Training employees to recognize phishing emails and practicing good password hygiene are essential steps. Additionally, adopting passkeys for two-factor authentication can significantly enhance security.

    How have recent changes in data privacy regulations impacted your approach to cybersecurity and data privacy?

    The regulatory landscape is constantly shifting, with new laws and amendments emerging regularly. For instance, the SEC requires public companies to disclose material cyber events within a few days. This push toward more disclosure and transparency is reminiscent of the European GDPR model.

    Staying on top of these changes is challenging but essential. Our approach involves continuous monitoring of regulatory developments and ensuring our clients are aware of their obligations. This proactive stance helps businesses navigate the complex web of data privacy regulations effectively.

    What emerging trends in cybersecurity should businesses be aware of, and how can they prepare for these developments?

    Artificial intelligence (AI) is a double-edged sword in cybersecurity. On one hand, threat actors use AI to create more sophisticated phishing emails and deepfakes, making them harder to detect. On the other hand, cybersecurity companies leverage AI to predict and defend against these attacks more effectively.

    Deepfakes, in particular, pose a significant threat, with instances of voice impersonations leading to fraudulent financial transactions. Businesses must stay vigilant and adopt advanced AI-driven security measures to counter these evolving threats.

    What are the best practices for organizations to ensure robust data privacy and security in today’s landscape?

    One of the most critical areas of concern is funds transfer fraud. This type of fraud involves threat actors breaching networks and sending phony emails to trick companies into transferring money to fraudulent accounts. The financial losses from such frauds can be staggering, often amounting to millions of dollars.

    To combat this, organizations must implement rigorous training programs for their finance teams. It’s essential to establish multiple checkpoints for verifying payment instructions and to never rely solely on email communications for such verifications. Additionally, having a robust incident response plan in place can help mitigate the impact of any cyber incidents.

    Locations

    Boston

    Practices

    Cybersecurity & Privacy

    Insights And Happenings

    • Alert

      New York adopts cybersecurity regulations for general hospitals

      Oct 11, 2024
    • Alert

      OIG report recommends increased oversight of Medicare’s reimbursement for Remote Patient Monitoring (RPM)

      Oct 8, 2024
    • Alert

      Key legal considerations at the crossroads of healthcare and technology

      Oct 3, 2024
    The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • Cookie Preferences
    • Privacy Policy
    • Terms of Use
    • Accessibility Statement
    • Statement of Client Rights
    • Purchase Order Terms & Conditions
    • Nixon Peabody International LLC
    • PAL
    © 2025 Nixon Peabody. All rights reserved