Cybersecurity & Tech

What is happening? 45 organizations including the Electronic Privacy Information Center, the Algorithmic Justice League, Fight for the Future, the American Civil Liberties Union, and the Project on Government Oversight are calling on state and federal government to cease using 3rd party digital identification systems, ID.me.

Why is this important? There is no comprehensive law regulating the collection, use, disclosure and retention of biometric data.

How will this be important? Not only is there no comprehensive law, but also there is a 2019 study by the National Institute of Standards and Technology that found that the majority of facial recognition systems have demographic bias.

Route Fifty | Agencies Shouldn’t Use Facial Recognition for ID Verification, Group Says

What is happening? The IRS has stopped verifying identities with facial recognition software because it as using a 3rd party product and the government has an identity verification program. (e.g. don’t give 3rd parties access)

Why is this important? At the heart of this is the concept that  “digital identity management a “core government service.”

How will this be important? States, you’re up!

FCW | IRS backs away from facial recognition technology

What is happening? The City of Baltimore is expunging data collected by a now defunct low level  surveillance plane program.

Why is this important? Expunging this data is complicated. During the time the planes flew, 1,532 crimes were committed, only 158 crimes that relied on evidence from the planes, and 38 crimes were cleared with the evidence. Some prosecutions may rely on it which means the data has to be maintained until all appeals are exhausted. The legal system is not known for being fast.

How will this be important? Other cities have stopped programs that used a variety of techniques like facial recognition. How are cities expunging that data? Is the data every really gone? Not if Hollywood crime movies are to be believed.

Baltimore Sun via Governing | Baltimore Police to Expunge Surveillance Plane Records

What is happening? The FBI has formed a new team dedicated to cryptocurrency

Why is this important? The FBI team will coordinate with the National Cryptocurrency Enforcement Team in relation to cyber crimes.

How will this be important? The policy objective is to allow digital currencies to grow will limiting the illicit use of cryptocurrency.

The Hill | FBI to form new cryptocurrency unit

What is happening? Coinbase’s app downloads increased by 309% week-over-week after its Super Bowl ad

Why is this important? Crypto regulation is in its infancy

How will this be important? Crypto usage and purchase will drive policy.

TechCrunch | Super Bowl ads boosted crypto app downloads by 279%, led by Coinbase

What is happening? Congressman Josh Gottheimer proposes legislation to “designate certain digital currencies as “qualified” stablecoins if they can be redeemed on a one-for-one basis for U.S. dollars.”

Why is this important? Stablecions would be backed by banks or designated reserve assets in a non-bank.

How will this be important? Concerns include : “that a spike in redemption requests, or a stablecoin “run,” could result in bankruptcy at the issuer and start a domino of insolvency”

CNBC | Democratic lawmaker unveils bill that would define boundaries for stablecoin market

What is happening? The BlockCain Council of Texas estimates 27 bitcoin mining companies in Texas. One of those companies, Geosyn Mining expects to operate 531 mining machines.

Why is this important? Texas as Bitcoin Fund in operation and  two new natural gas-powered bitcoin mining facilities in Texas

How will this be important? Over the next year, Poolin CEO Kevin Pan, plans to quadruple its current 2GW mining facility in Texas.

TechCrunch | How Texas is becoming a bitcoin mining hub

What’s happening? PA had a COVID tracing contractor data breach that resulted in SB 696 (2022 | PA) that would require governmental entities, including school districts, to disclose known data breaches within 7 days to those impacted

Why is this important? The bill was amended to include 3rd party vendors.

How will this be important? The breach disclosure time frame is 3 days from discovery for notification to the state attorney general.

AP & WKPN | Pa. Senate advances data breach timely notice bill

What’s happening? NH Governor Sununu has created a Cryptocurrency Commission.

Why is this important? The Commission will make recommendations to the Governor and the Legislature on the state of regulation for cryptocurrency in NH.

How will this be important? TX currently has a study commission authorized but he Legislature. Hawaii’s default legislative position is a study of cryptocurrency. Everyone is looking for what Gov. Sununu identified : “must work to bring legal and regulatory certainty” 

Concord Monitor | Sununu launches cryptocurrency commission

What is happening? The Legislature in Hawaii must pass reauthorization legislation to permit cryptocurrency trading to continue in Hawaii

Why is this important? In 2016, Hawaii’s Department of Commerce and Consumer Affairs ruled that cryptocurrencies were regulated as money transmitters, which halted trading of cryptocurrencies

How will this be important? SB 3025 (2022 | HI) would license cryptocurrency in Hawaii & SB 2696 (2022 | HI) would allow cryptocurrencies to be accepted in financial transactions in Hawaii.

KHON | Cryptocurrency trading to end in Hawaii if legislature doesn’t act

What’s happening? A new FDA proposal would utilize blockchain to establish farm-to-fork food traceability,

Why is this important? An easier way to trace food sources for food safety. Walmart and Nestle use blockchain for their food traceability and would not require companies to maintain digital records

How will this be important? As blockchain methods are used for traceability in other portions of the supply chain.

WSJ | FDA Official Says New Rule Could Boost Blockchain-Based Food Tracking

What is happening? A smattering of luxury car groups are accepting crypto currency to purchase their vehicles. Included are Post Oak Dealership in Houston, TX; Marino Performance Motors in West Palm Beach;

Why is this important? Dealers say they felt like they needed to accept crypto because their clients want to pay with crypto.

How will this be important? Crypto first say “In actuality there is more transparency and faster transaction finality than the legacy banking options available.”

International Policy Digest | 10 Car Companies that Accept Bitcoin as Payment

Kilgore News Herald | Luxury car dealers are seeing a rise in purchases using crypto currency

What is happening? Improving data collection equity and leveraging that data allows states and cities to budget for equity and achieve more equitable outcomes

Why is this important? 70 counties have officially declared racism a public health threat.

How will this be important? ESG rules could be our guide to monitor equity on the local level.  

Route Fifty | The Next Frontier in Equity is All About Data

What is happening? NYC new mayor used an executive order to consolidate all the city’s technology departments to promote the use of civic technology .

Why is this important? For NYC that means the following agencies will be consolidated:

• New York City Department of Information Technology and Telecommunications
• Mayor’s Office of Data Analytics
• Mayor’s Office of the Chief Technology Officer
• Mayor’s Office of Information Privacy
• New York City Cyber Command
• Algorithms Management and Policy Office
• NYC 311

How will this be important? Information sharing issues emerged during the pandemic, and the goal of the consolidation will be increase accountability.

Government Technology | Eric Adams Consolidates New York City Tech Agencies

What’s happening? In 2021 21 states considered cryptocurrency legislation. 14 passed measured laws like unclaimed property or studies.

Why is this important? When financial laws regulating money transmissions, like wire transfers and money orders, were created crypto currency did not exist.

How will this be important? Looking for a way to get cryptocurrency into your laws…your entry way cam be an update to financial regulations like wire transfers.

Route Fifty | As States and Localities Embrace Cryptocurrency, Problems Grow

What’s happening? NYC and Austin, TX are the next two cities to follow Miami into the use and acceptance of cryptocurrency.

Why is this important? Academics say the branded value of “MiamiCoin” or whatever NYC or Austin ill choose for a name adds to the value for cities.

How will this be important? Miami saw an increase in cryptocurrency businesses after adopting MiamiCoin, and the talkers say NYC and Austin should anticipate the economic development advantages that Miami has from its cryptocurrency.

Route Fifty | As States and Localities Embrace Cryptocurrency, Problems Grow

What’s happening? Maine is considering a constitutional amendment that would clarify that privacy, including digital privacy is a constitutional right.

Why is this important? By defining data as a privacy right, it triggers warrant requirements.

How will this be important? NCSL says 13 states have adopted a privacy right in their constitutions. These states include New Hampshire, Missouri and Michigan.

Portland Press Herald via Governing | Maine Data Privacy Concerns Push for Constitutional Amendment

What’s happening? In the ongoing saga in Missouri over a state cyber vulnerability that was brought to the attention of state leaders by a reporter. The Governor believes that the Cole County prosecuting attorney will bring charges against the reporter.

Why is this important? White hackers or individuals who caused no harm, did not profit and revealed vulnerabilities are not usually prosecuted.

How will this be important? Whether other jurisdictions will begin prosecuting people without the intent to cause harm

St Louis Today | Parson says he believes prosecutor will bring charges in Post-Dispatch case

What is happening? The U.S. Cybersecurity and Infrastructure Security Agency doesn’t have the requisite data to protect critical infrastructure when it has no reported data on breaches.

Why is this important? By looking at reported breach data security experts can more easily identify software flaws that allow for breaches.

How will this be important? Breach data is helpful to security experts.

Roll Call | Absence of reporting law limits agency knowledge of cyberattacks

What is happening? In the last 3 years pension funds in CA, NJ, Houston Firefighters, and Fairfax County VA all invested in cryptocurrencies in different forms.

Why is this important? 33% of institutional investors are in crypto. Barriers are coming down for investment including crypto as being considered illiquid.

How will this be important? At least 17 states have started considering regulation of cryptocurrency. The SEC is signaling regulation and the Infrastructure bill contains cryptocurrency reporting requirements.

Route Fifty | Why More Public Pension Funds Are Investing in Cryptocurrencies

What’s happening? In 2021, Congress introduced 35 cryptocurrency measures

Why is this important? Similar legislation has been filed in states. The legislation falls into 3 categories:

•  cryptocurrency regulation
• applications of blockchain technology (blockchain is the backbone technology for crypto)
• central bank digital currency

How will this be important? This is all new territory with no clear tragectory

Forbes | In 2021, Congress Has Introduced 35 Bills Focused On U.S. Crypto Policy

What is happening? D.C.’s attorney general proposes to shield district residents from discriminatory and biased computer algorithm. This would make it illegal for businesses to use discriminatory algorithms in areas such as education, employment, housing, and with providing services like credit, health care, and insurance.

Why is this important? The policy goal of reducing sexism, racism and boas for ethnic background is gaining steam. Penalties include up to $10,000 for each violation of the guidelines.

How will this be important? This mirrors what’s happening in business right now. “Data & Trust Alliance, a group that includes major corporations, said more than a dozen companies would adopt safeguards to prevent bias with algorithms used for workforce decisions, around issues like recruiting and pay. That group includes General Motors, IBM, Mastercard, Walmart and Meta (the rebrand of Facebook), among other companies.”

Route Fifty | A Proposal to Block Companies From Using Biased Algorithms

What’s happening? Some legal experts say gaps in the law allow warrantless access to your car’s information center. A warrant may be required for your phone but your phone’s information is also stored indoor vehicles information system and that system may not need a warrant.

Why is this important? The internet of things creates gaps in data privacy and rules, regulation and laws are slow to keep up with innovation

How will this be important? The first big lawsuit in your state about information held on the internet of things will lead to changes, be ready. some State Supreme Courts have taken action, like in Georgia where the GA Supreme Court required a warrant for vehicle data information.

Detroit News via Governing | Police Don’t Need a Warrant to Pull Personal Data from Cars

What’s happening? Miamicoin isn’t the only cryptocurrency movement in Florida. Crypto is accepted at real estate and yacht brokers to hair salons and charter jet companies in Broward and Palm Beach counties.

Why is this important? Local charities are starting to show interest in crypto, including crypto donations.

How will this be important? Some say Miami’s Miamicoin is setting a model for other cities.

 South Florida Sun-Sentinel | Miami Isn’t the Only Florida Locale Experiencing Crypto Growth

What is happening? Texas candidates for public office can receive contributions in crypto currency.

Why is this important? The Texas Ethic Commission proposed rules will no longer require campaigns to immediately convert the crypto. The proposed rules as filed can be found here.

How will this be important? Rules are anticipated to be adopted in February

What’s happening? Rhode Island is launching a vaccine status app that will make it easier for Rhode Islanders to travel as the CDC issued paper vaccine record is inefficient.

Why is this important? Use of the app by an individual or a business is 100% voluntary.

How will this be important? CA, CO, RI and NJ all use similar apps

Providence Journal via Governing | Rhode Island Announces COVID Vaccination Status Mobile App

What’s happening? The Local Government Insurance Trust in Maryland, where local governments purchase insurance including cyber policies, saw a 300% in cyber insurance premiums. Premiums are expected to rise for 2022 also. The Missouri Insurance Trust saw policies drop from $1 million in coverage to $250,000 and premiums increase from $5,000 to $25,000.

Why is this important? In 2021, 90% of local governments report having cyber insurance. That’s up from 78% in 2020

How will this be important? Insurance experts say local governments need to improve local network security to see the market stabilize.

Route Fifty | Cyber Insurance for Local Governments Costs More, Covers Less

What’s happening? States are passing bills that require disclosure of ransomware attacks.

Why is this important? To paraphrase  Indiana state Rep. Mike Karickhoff, who authored his state’s legislation, if your house gets broken into, you will tell your neighbors.

How will this be important? So far states are following the IN approach, requiring only disclosure by governmental entities if they get hit by ransomware. ND followed suit and WV did so too but limited it to qualified cyberattacks.

Stateline | How Common Are Ransomware Attacks? Lawmakers Want to Find Out.

What’s happening? Smart Bandages that could help improve the diagnosis and treatment of wounds by transmitting data via bluetooth, floor sensors that can transmit information about intruders or health information that can be determined by gait; and car sensors that can relay dings and damage to rental cat companies.

Why is this important? Along with transmission of dat comes data privacy issues, and whether the method and mode of this data transmission are protected under cyber security laws will depend on the cybersecurity laws.

How will this be important? Laws and regulations will have to recalibrated for new devices and privacy issues.

Wall Street Journal | Smart Bandages, Vehicle-Damage Trackers and More Data-Collecting Devices of the Future

What’s happening? States are taking enforcement action against bad acting crypto currencies.

Why is this important? Let’s look at the variety of ways state enforcement occurs:

• Attorneys general in MA & NY have issued fines and cease and desist orders
•  Texas State Securities Board issued a cease-and-desist order for fraudulently offering cryptocurrency mining investments
• 30+ states considered cryptocurrency legislation in 2021
• AR and KY enacted laws defining digital currency under the states’ money services or transmission statutes
• IN and ND added coverage for virtual currencies under unclaimed property acts
• NE is the 2nd state to create a special bank-like institution to govern virtual currencies and other digital assets
• WY created a bank like structure for crypto in 2019
• TX passed a law that the purchaser of virtual currency gets the rights to that currency from the previous owner & that brings cryptocurrency under the same state business code that applies to other ordinary transactions

How will this be important? More legislation is forthcoming, bills will be replicated.

Pew Charitable Trusts via Governing | States Crack Down on Growing Cryptocurrency Fraud

What is happening? Texas Legislature passed HB 1576 (2021 | TX) that requires that joint legislative committees develop a master plan for blockchain expansion.

Why is this important? The bill also opens the door for investment into blockchain. This includes economic development opportunities for the blockchain industry.

How will this be important? This master plan shapes the future of blockchain in Texas + we’ll see the next round of legislative action emerge.

What is happening? Texas Legislature passed SB 275 (2021 | TX) that requires The Texas Department of Information Resources to report on the Texas Volunteer Incident Response Team.

Why is this important? The goal is to offer rapid response to a cyber event at the state.

How will this be important? The report will make recommendations to make communication more efficient fro cyber response coordination.

What is happening? The Student Data Privacy Consortium (SDPC), a Special Interest Group of the non-profit Access 4 Learning (A4L) Community, is proud to announce the release of The National Research Data Privacy Agreement, a great resource to support schools in their student data privacy stewardship roles

Why is this important? The National Research Data Privacy Agreement included input from all stakeholders including schools, districts, state and government organizations, marketplace providers, researchers, universities, and their legal representatives

How will this be important? “The draft NRDPA can be found on the SDPC website (https://privacy.A4L.org/national-research-dpa/) with permissible usage rights for SDPC Members.”

EIN Press Wire | The Student Data Privacy Consortium (SDPC) announces the release of the National Research Data Privacy Agreement (NRDPA)

What is happening? Miami has created a partnership that earns it a portion of the proceeds from MiamiCoin. So far Miami has earned $21 million.

Why is this important? MiamiCoin is the city’s version of CityCoins, digital tokens which people can hold and trade as a stake in their city’s government. The idealized view is that MiamiCoin will remove the need to pay local taxes.

How will this be important? Miami is the 1st city in the country to adopt this program, and by all accounts it has so far been beneficial.

The Hill | Miami residents to receive city cryptocurrency proceeds, mayor says

What’s happening? DTRAVEL is a decentralized home sharing platform that is governed by its community via the Dtravel Decentralized Autonomous Organization (DAO), which gives community members a say with support from  world’s leading crypto-friendly online travel agency

Why is this important? By relaying on blockchain, the participants can own part of the platform and make decisions that directly affect them

How will this be important? DTRAVEK says its method reduces fees, gives new revenue streams, and offers a community voice

Yahoo | Dtravel, Decentralized Home-Sharing Platform, Now Live for Bookings

What’s happening? QR codes in and of themselves are not privacy hackers, but the websites the QR codes lead you to, will track you can follow your data. Privacy experts recommend non-tracking browsers like Safari or Firefox.

Why is this important? Legislating consumer privacy online is very of the moment. Add QR codes to your legislative definitions.

How will this be important? QR codes will move from restaurant tables to your state house soon

@washingtonpost

What’s happening? CT joins UT and OH with offering liability protections for businesses who comply with reasonable data security measures.

Why is this important? These laws are viewed as a preview to liability protections coming to other states.

How will this be important? Need to write this legislation? Well, it’s been written.

Fox Rothschild LLP | New Connecticut Law Incentivizes Adoption of Cybersecurity Standards

What’s happening? 25% of local elected officials are opting out of cyber training.

Why is this important? The elected official exemption often also applies to their staff & the number of cyber attacks on local governments is increasing.

How will this be important? 58% of IT executives said their organization’s cybersecurity budgets are not adequate

Route Fifty | Most Local Governments Provide Cyber Awareness Training. Why Do 25% Let Elected Leaders Opt Out?

What’s happening? The Department of State is establishing a Bureau of Cyberspace and Digital Policy. Supporters are bipartisan including Mike McCaul (R-Texas), Sen. Angus King (I-Maine), and Rep. Jim Langevin (D-R.I.) 

Why is this important? The DOJ gave the Senate the power to confirm the head of the his Bureau.

How will this be important? The bureau will focus on international cyberspace security, international digital policy, and digital freedom and will integrate the core security, economic, and value components of the DOJ cyber agenda.

The Hill | Lawmakers praise upcoming establishment of cyber bureau at State

What’s happening? The Department of Justice will use the False Claims Act to impose penalties upon recipients of government contracts and grants that fail to follow required cybersecurity standards.

Why is this important? To be penalized a contractor had to knowingly fail to comply.

How will this be important? They want to take a stand this will be hefty fines and heavy protection of whistleblowers.

Pillsbury | DOJ Announces Civil Cyber-Fraud Initiative to Combat Cybersecurity Threats

What’s happening? 2020 saw $3.3 billion in losses to cybercrime. That’s double the 2010 numbers. 4.7 million reports of cybercrime in 2020, that’s a 300% increase from 2010. Any drops in cybercrime during COVID were modest.

Why is this important? Lets look at where cybercrime hits the most and the least:

The MOST hit by cybercrime:

• Alaska—$500
• New Mexico—$420
• California—$407
• Washington—$400
• Nevada—$400
• Delaware—$400
• Washington, D.C.—$399
• Florida—$384
• North Dakota—$381
• Arizona—$374

The lease hit by cybercrime:

• West Virginia—$205
• Kentucky—$210
• Maine—$211
• Mississippi—$213
• Rhode Island—$229
• Ohio—$230
• New Hampshire—$231
• Missouri—$236
• Indiana—$240
• Wisconsin—$249

How will this be important? With more people working from home, and the cybercrimes related to federal and state COVID programs, the cybercrime numbers are expected to keep increasing.

Route Fifty | States With the Most and Least Cybercrime

What’s happening? Politicians are touting it, and cryptocurrency miners see the lone star state and its low-cost energy as an appealing location.

Why is this important? A research associate at the Webber Energy Group at the University of Texas at Austin says that “Because Texas has some of the lowest cost electricity in the world, it looks pretty attractive to bitcoin miners or cryptocurrency miners.”

How will this be important? Opponents. Like these:

• An associate professor of environmental engineering at Rice University says ” “But just adding brand new demand to the grid isn’t helpful, or doesn’t fix the shortfalls.”
• founder of the website Digiconomist which analyzes the impacts of cryptocurrencies says ” “This is a massive risk when you look at the Texas grid, which is already quite weak,”

Houston Chronicle via Governing | Can Texas’ Power Grid Withstand Cryptocurrency Mining?

What’s happening? State Information Officers have been primarily focused on cybersecurity. Thanks to the pandemic, states #2 priority is improving digital services.

Why is this important? Streaming state services for functional and efficient digital services is good for state operations and good for state citizens. Connecticut says it thinks  it has saved aspiring entrepreneurs 38,000 hours by streamlining digital services.

How will this be important? States are beginning to understand that they should be able to deliver services, like food in disasters, as quickly and efficiently as you can get a coffee at Starbucks.

Government Technology | States to Maintain Digital Service Delivery Post-Pandemic

What’s happening? White hat hackers, like academics or the press, discovered a flaw in the Missouri Department of Education’s website that exposed the social security numbers of teachers. They notified the state to not draw attention. In turn, the Governor attacked the white hat hackers who were trying to do a good.

Why is this important? DO NOT SHOOT THE MESSENGERS

How will this be important? Make sure your state laws on hacking are up to do date for the good guys to say hey there’s a flaw, let’s fix it before oil becomes a problem.

Washington Post | A fight in Missouri shows the damage of overbroad hacking laws

What’s happening? Gov. Greg Abbott wants Texas to be the center of the semi conductor world. (sssh! Don’t tell Austin it isn’t the center of the world).

Why is this important? The Gov. is assembling a task force in hopes of bringing the National Semiconductor Technology Center to the state.

How will this be important? The current Congress created the National Semiconductor Technology Center. This could be interesting foresight into the relationship between the Democratic Congress and Texas.

KTRH | Abbott Wants Texas To Be National Semiconductor Technology Center Home

What’s happening? Rackspace conducted a survey of 1,420 government IT decision-makers and learned:

• 52% expressed significant concerns over recruiting and retaining cybersecurity talent
• 84% said they lack the expertise to meet current cybersecurity and compliance challenge
• 73% time constraint problems
• 59% lack of training challenges

Why is this important? 58% were concerned about attacks of their networking systems followed by platforms 54% and apps at 53%.

How will this be important? 49% of respondents said adopting a zero-trust security framework would address cybersecurity challenges

Route Fifty | Half of Public Sector IT Pros Not ‘Fully Confident’ in Cyberattack Response

What is happening? Massachusetts Legislature is consider S48 (2021 | MA) , An Act to ensure a free and open internet in the commonwealth, to keep providers from  blocking, throttling or engaging in the paid prioritization of providing Internet service.

Why is this important? Net neutrality is moving to a state to state issue

How will this be important? MA isn’t alone, WA and CA have also entered into the net neutrality fray to keep providers from allowing for paid prioritization of internet services.

Government Technology | Massachusetts Proposes Regulating Broadband Industry

What’s happening? Halloween candy manufacturer was hit by a ransomware attack. We’re talking core Halloween candy on the US: Everlasting Gobstoppers, Lemonheads, Now and Later, Nerds, SweeTarts, Laffy Taffy, Red Hots, Pixy Stix, Atomic Fireballs, Boston Baked Beans.

Why is this important? Ransomware attacks are up and here we have an attack that could impact Halloween which is really just a candy holiday.

How will this be important? Well, just today Treasury Secretary Yellen called ransomware a direct threat to security.

The Hill | Major US candymaker targeted in ransomware attack

What’s happening? Hacks and ransomware are occurring in greater numbers. COVID created a lot of new healthcare data.

Why is this important? The California Attorney General issued guidance to heath care industry that put the industry on notice that the office is concerned by health care data privacy.

How will this be important? The California Attorney General recommended the following minimum standards :

• keep all operating systems and software housing health data current with the latest security patches;
• install and maintain virus protection software;
• provide regular data security training for staff members that includes education onnot clicking on suspicious web links and guarding against phishing emails;
• restrict users from downloading, installing, and running unapproved software; and
• maintain and regularly test a data backup and recovery plan for all critical information to limit the impact of data or system loss in the event of a data security incident.

California Attorney General | BULLETIN: Obligation to Proactively Reduce Vulnerabilities to Ransomware Attacks and Requirements Regarding Health Data Breach Reporting

What’s happening? Financial firms identified $600Million in ransoms paid for ransomeware attacks. U.S. Department of Treasury investigators say it identified $5.2 Billion in bitcoin transactions that appear to be ransom payments.

Why is this important? The escalation is a critical infrastructure security threat.

How will this be important? Treasury conclusion is that ” private sector has collectively failed so far to take sufficient steps to protect against attacks”

Wall Street Journal | Suspected Ransomware Payments Nearly Doubled This Year, Treasury Says

What’s happening? Discussions about 2020 election audits in Pennsylvania are adding data privacy elements to prevent voter information discovered during the audit from being sold to third parties.

Why is this important? The audit standards in PA have included requests for the last 4 numbers of social securities numbers and full drivers license numbers.

How will this be important? An audit conducted by a third party would leave social security numbers and drivers license numbers accessible by a third party and transferrable.

Philadelphia Inquierer via Governing | Concerns Raised About Data Privacy Amid Pa. Election Review

What’s happening? Australia and Oklahoma have something in common- an intent to increase criminal penalties for ransomware.

Why is this important? Australia’s approach is to create a stand alone aggravated charge for ransomware. Also included is a notification requirement for businesses that pay more than $10million in ransom per year.

How will this be important? We’re seeing both of these approaches in the U.S. IN Congress we have a notification for any ransom paid being bandied about and Oklahoma passed a bill specifically criminalizing ransomware.

Australia Ransomware Action Plan

ZDNet | Australia’s new ransomware plan to create ransomware offences and reporting regime

What’s happening? China cracked down on mining, reducing mining to zero. That leaves the U.S. mining 35% of crypto currency followed by Kazakstan, Russia, Canada, Ireland, Malaysia, Germany, Iran and Norway

Why is this important? More mining means more attention from financial interests. This begets more attention from regulators.

How will this be important? The pressure of more attention on US bitcoin mining could be a catalyst for regulatory action.

Finance Magnates | The US Is Now the Biggest Bitcoin Mining Center after China’s Crackdown

What’s happening? At the Texas Blockchain Summit, U.S. Senator Ted Cruz linked natural gas flares with a potential energy source for bitcoin mining.

Why is this important? From the words of U.S. Senator Cruz: “The beauty of Bitcoin mining is that if you can connect to the internet, you can use that energy and derive value from those renewables in a way that would be impossible otherwise. And, I think we are going to see in the next five years massive innovations in that regard as well,” 

How will this be important? Miami has Miami Coin. Wyoming is open for crypto business and making moves to bank crypto currency.

Finance Magnates | Texas Should Use Abundant Energy for Bitcoin Mining, Says Ted Cruz

What’s happening? A survey released this week by Price Waterhouse and Cooper says that 69% predict a rise in cyber spending in 2022. More than 25% say cyber spending will be more than double digit growth.

Why is this important? Last year’s study showed only 55% thought there would be a rise in cyber spending. 46% are seeing increased engagement of the CEO/

How will this be important? 2021 is on pace to record setting in cybersecurity issues.

PWC | 2022 Global Digital Trust Insights Survey

What is happening? U.S. House and Senate members are advocating for standalone cybersecurity committees to “address mounting threats and streamline an increasingly bogged down process to approve legislation. “

Why is this important? As Congress does, so will your states.

How will this be important? Increase focus on cybersecurity addresses notice requirements for businesses, blockchain, cryptocurrency and more. It will touch corporations, financial institutions, law enforcement, local governments and campaign ethics. This is your alarm clock, wake up.

The Hill | Lawmakers advocate for establishment of standalone House and Senate cyber panels

What is happening? The Department of Justice has created the National Cryptocurrency Enforcement Team that will investigate cryptocurrency through the lens of cyber crimes and money laundering.

Why is this important? The announcement also included ties to ransomware as ransoms are usually in cryptocurrency.

How will this be important? Look to this enforcement hierarchy to be replicated at the state level.

The Verge | US Department of Justice creates cryptocurrency enforcement unit

What’s happening? Pac-Sun will be the 1st major retailer to accept cryptocurrency at its retail establishments.

Why is this important? PacSun will utilize blockchain payment provider, BitPay. 

How will this be important? The primary consumer for Sunpac is GenZ. The retailers decision making is driven by it’s GenZ customer base. 54% of current or former crypto owners are Gen Z according to a study by Coinbase.

Shop Eat Surf | PacSun to Accept Crypto Currency

What’s happening? S2666 (1117th Congress) would require businesses with more than 50 employees to notify Cybersecurity and Infrastructure Security Agency that a ransom had been paid within 24 hours. A business’ failure to comply could hinder federal contracts.

Why is this important? Its a blue print for state legislation

How will this be important? This and similar legislation will continue to play out on the state level. We’ve seen Oklahoma make ransomeware “illegal”

Balch & Bingham | Senate Introduces Legislation Requiring 24-hour Ransomware Notification

What’s happening? Miami has partnered with CityCoin to accept MiamiCoin for tax purposes and other city purposes. The mining and exchange generates revenue for Miami.

Why is this important? Annually the program is expected to generate $60 M and the mayor believes it will turn Miami into an innovation hub as the first city to begin this endeavor.

How will this be important? The key is watching the negotiations between the Mayor and a power plant. Cryptocurrency mining utilizes a lot of power.

Washington Post | Crypto tax: ‘MiamiCoin’ has made the city $7 million so far, a potential game-changer for revenue collection

What’s happening? Miami adopted Miamicoin, a cryptocurrency that can pay city employees, and be accepted for city taxes.  Miami is partnering with CityCoins, a nonprofit and opensource protocol that allows people to hold and trade cryptocurrency representing a stake in a municipality.

Why is this important? In a week that saw China ban all cryptocurrency, we see Miami, one of the first cities int venation to embrace crypto currency. The Miami mayor calls the program a way to transform the city into the world’s “cryptocurrency innovation hub,” 

How will this be important? The program is expected to generate $60M in the first year for the city. Since August $7.1 has been generated for Miami.

Washington Post | Crypto tax: ‘MiamiCoin’ has made the city $7 million so far, a potential game-changer for revenue collection

What’s happening? Hong Kong passed a doxxing law that prohibits the public release of information identifying an individual or organization

Why is this important? The legislation is a reaction to the 2019 mass pro-democracy protests that resulted in some law enforcement officers’ home addresses and children’s schools being exposed by anti-government protesters, leading to threats.

How will this be important? Pro-democracy groups worry that the legislation will be used to prosecute dissenters. Asia Internet Coalition, an advocacy group that includes Google, Facebook and Twitter, have said they may stop offering services.

WHBL | Hong Kong legislature passes controversial anti-doxxing privacy bill

What is happening? In June 2021 3.9 Million people quit their jobs. 41% of workers world wide are ready to quit.

Why is this important? Data moves when employees move jobs. New hires are the easiest targets for hackers.

How will this be important? The FBI says $26 billion has been lost to business email compromise attacks like these since 2016.

Forbes | The Great Resignation Makes Data Security More Crucial Than Ever

What is happening? A Newsweek poll shows that more than 40% of Texan voters support crypto-friendly legislation

Why is this important? This includes support for legalizing cryptocurrencies

How will this be important? Wyoming is methodically passing legislation to create a crypto bank, and has been a legislative fascination for other like minded legislators

Yahoo Sports | Crypto-Friendly Legislation Survey in Texas Receives 42% Voter Support

What’s happening? www.banfacialrecognition.com tracks state and local bans on facial recognition software. There are 20+ outright bans.

Why is this important? How you write a ban matters as Town of Hamden, Connecticut learned after proposing ” an ordinance that would prohibit all town officials from obtaining, retaining, accessing or using “any facial recognition system or any information obtained from a facial recognition system.” The wording could prohibit a town official from using their iPhone that uses facial recognition to open.

How will this be important? Both sides on this issue agree that any data collected must be protected from release and hackers.

Reason | Proposed Local Facial Recognition Technology Ban Draws Fire

What is happening? Facial Recognition Software isn’t making local government sales, but it is making private sector sales like Miami where Uber or Lyft, or at an airport kiosks, have tablets that use facial recognition to target ads.

Why is this important? The operator says the tablets do not retain personal data but do look for person’s age, gender, and ethnicity, as well as mood

How will this be important? The company says cookies that tock you are a thing of the past and this is the future.

Miami Herald | Tech Trail: Miami Beach firm’s face camera reads age, gender, mood to target ads. Is that OK?

What’s happening? Treasury Secretary Janet Yellen has declared ransomware a threat to the economy. To lessen the threat, The Treasury Department is cracking down on cryptocurrency, the preferred payment method for ransomware hackers.

Why is this important? This year, the U.S. has seen  Colonial Pipeline and JBS USA choosing to pay ransoms. The Justice Department recovered the majority of the roughly $4.4 million in bitcoin paid to the hackers by Colonial.

How will this be important? States are making ransomware an explicit stand alone crime and state securities agencies are enforcing cryptocurrency bad actors, it’ll be a combination of federal and state enforcement.

The Hill | Treasury sanctions cryptocurrency exchange for facilitating ransomware payments

What’s happening? At the end of July New York City passed a rule that required food delivery services to share customer information with restaurants with the policy goal of giving restaurants access to their customers. Now, Door Dash is suing in part because there are no data security measures for when the information is transferred.

Why is this important? Also included in the NYC vs. Food Delivery brouhahah is a cap on fees that delivery services can charge.

How will this be important? Delivery services say ultimately customers will be harmed because they’ll have fewer options and NYC says that restaurants are the backbone of the NYC economy.

NY Post | DoorDash sues NYC over data-sharing law, privacy concerns

What’s happening? Supports of prohibiting ransom payments to hackers say that by prohibiting the payment of ransomware we will see a decline in ransomware.

Why is this important? For those playing along at their offices, we know that Oklahoma passed a bill , HB 1759 (OK | 2021 )this year to make ransomeware specifically a crime. 3 states, PA, NY and NC are considering making payments to ransomware attacks illegal. A bill died in Texas to this effect.

How will this be important? Bans will be part of a multi prong approach including: incentives, mutual aid where the governments identify experts that can help businesses, and building business resiliency.

Government Technology | States Consider Legislation to Ban Ransomware Payments

WSJ | Should Ransomware Payments Be Made Illegal?

What’s happening? Software companies that make license plate reading software has a new home as the companies are approaching neighborhoods.

Why is this important? local governments and states are not adopting the software, so the new message is license plate readers is a tool for neighborhood watch.

How will this be important? There is no empirical data that license plate readers reduce crime and the operation of the readers has little oversight in the hands of a neighborhood. A San Antonio neighborhood raised concerns of stalking fellow neighbors.

Electronic Frontier Foundation | Things to Know Before Your Neighborhood Installs an Automated License Plate Reader

What’s happening? A new report from cybersecurity firm, Strikeforce, says that there is a rise in using compromised credentials to gain access as opposed to malware and ransomware.

Why is this important? Multilayer credential checks along with repetitive credential checks are the way around this type of attack. The attacks are also faster at gaining access to other systems within a network at an average time of 1 hour and 32 minutes.

How will this be important? As hackers are faster and quicker, entities have to react more quickly to secure their systems and users.

Route Fifty | Report: Hackers Shift from Malware to Less Detectable Credential Hijacking

Crowdstrike No Where to Hide 2021

What’s happening? El Salvador is moving to adopt a cryptocurrency. It has acquired 200 bitcoins with a value total of $10 million.

Why is this important? More countries are moving toward adopting a form of cryptocurrency. El Salvador will accept bitcoin for goods, services and for taxes.

How will this be important? The El Salvador government’s bitcoin wallet Chivo, comes pre-loaded with $30 worth of the currency for users who register with a Salvadoran national ID number.

@businessweek

FoxBusiness | Bitcoin in El Salvador sparks crypto currency debate

What’s happening? Detroit is using a marketing campaign for the Federal Communications Commission’s Emergency Broadband Benefit Program focused on a hotline number, radio ads, tv ads all targeted by the distinct neighborhoods. Flyers are distributed to churches.

Why is this important? The digital divide isn’t only urban-rural, but also within urban areas.

How will this be important? If the marketing is successful in Detroit, it could inform other cities.

Route Fifty | Behind Detroit’s Homegrown Campaign to Close the Digital Divide

What’s happening? The new buzz word for state election security is “cyber navigators.

Why is this important? Cyber navigators are said to break down complicated cuber security for elections into tangible achievable pieces for election administrators

How will this be important? 7 States have passed cyber navigator programs: Florida, Illinois, Iowa, Massachusetts, Michigan, Minnesota and Ohio

Stateline via Governing | Facing Foreign Election Foes, States Hire ‘Cyber Navigators’

What is happening? Republican leadership in Ohio is proposing data rights for Ohioans with the ability to have personal data deleted and request that it not be sold.

Why is this important? OH led the nation in offering liability protection for companies that maintained reasonable dat security measures. That was 2017. Today, elected officials want protections for Ohioans.

How will this be important? It is being touted as giving businesses and consumers confidence in their data in Ohio.

Springfield News Sun via Governing | Ohio to Create Data Rights as Breaches Set to Break Records

What is happening? Operators of U.S. bitcoin ATMs formed a coalition to strengthen compliance standards to prevent cryptocurrency crimes.

Why is this important? To legitimize cryptocurrency the crypto ATM companies need to ensure against crime and anonymous transactions

How will this be important? The coalition intends to grow its stakeholders to include cash-based cryptocurrency money service businesses, regulatory bodies, financial institutions, non-governmental, and law enforcement agencies

Business Insider | Bitcoin ATM operators are forming a coalition to prevent crypto-linked crimes

What’s happening? Newark Airport is testing facial recognition software to assist with boarding

Why is this important? The goal of this pilot program is to make airports more effcieint

How will this be important? Commercialism the use of facial recognition, moving away from recent debates of the use of the software by governmental entities and law enforcement

Staten Island Advance | Newark, N.J., Airport Tests Facial Recognition for Boarding

What is happening? Kansas is testing a drone program out that would allow it to move medical supplies and lab tests

Why is this important? It is a partnership between German drone manufacturer Wingcopter & Denver-based air medical service provider Air Methods

How will this be important? Can prove to be a safe and efficient way to transfer medical goods minimizing human interactions

Hutchinson News via Government Technology | Kan. Hospital Tests Medical Supply Drone Flight Paths

What’s happening? Illinois Lake County Treasurer is the first campaign to take crypto current campaign contributions.

Why is this important? The FEC permits crypto currency contributions

How will this be important? The tech friendly candidate sees crypto currency contributions as a way to bring the tech supporters, who are not active campaign contributors

Government Technology | Lake County, Ill., Treasurer Takes Crypto Campaign Donations

What’s happening? Pennsylvania has a  Emerging Technologies Caucus that is introducing a blockchain bill that would allow businesses in Pennsylvania to develop blockchain-based products

Why is this important? Your bill drafting guides & talking points:

• H.B. 1370 “would establish a two-year financial technology sandbox program, which would allow the Department of Banking and Securities to work with the Department of State to waive specific laws and regulations that do not currently permit blockchain-focused financial technologies to be offered to consumers. The approved businesses would be required to notify the consumer that the product is part of a sandbox program and is still under development. “
• H.R. 121 “would establish a blockchain working group tasked to create a master plan for growth of the blockchain industry in Pennsylvania, including developing appropriate recommendations for new laws and regulations.”

How will this be important? Blockchain is a grey area in the law

PA House | Napoleon Nelson introduces blockchain technology bill package

What is happening? Texas Legislature passed the Lone Star Infrastructure Protection Act that prevents Texas from contracting with  foreign-owned companies from China, Russia, North Korea and Iran to protect the state’s critical infrastructure

Why is this important? The bill also gives the Texas governor the authority to add countries to the list, with consultation by the director of public safety and the Texas Department of Homeland Security.

How will this be important? SB 2116 (2021 | TX) let’s not be surprised when other states replicate this bill

Government Technology | Texas Law Will Block IT Contracts With Some Foreign Vendors

What’s happening? Argo Blockchain, a Canadian cryptocurrency mining company, built a facility in Dickens County, Texas. Population 2300. The reason: Available cheap energy.

Why is this important? Texas has a deregulated energy market, “which means customers can choose between different power providers and providers are thus incentivized to provide low rates.” This translates to long term contracts at low rates.

How will this be important? If Texas adopts market reforms will these contracts be impacted? Miners consider themselves a virtual power plant based on their power agreements.

The Guardian | Why bitcoin entrepreneurs are flocking to rural Texas

What’s happening? During the 1st week of August, Miami’s MiamiCoin project launched & has already generated $1Million in revenue for Miami. Miami under current laws can only receive the revenue in dollars, and cannot own the crypto. Currently Miami gets 30% of the revenue MiamiCoin generates using specific MiamiCoin protocols.

Why is this important? A discretionary pot on new revenue…name a city that wouldn’t be intrigued, please be my guest…

How will this be important? Revenue and the cryptocurrency is being touted as a “viable form of incentivizing civic engagement” Tallahassee is already working on ways for cities to own crypto…

Miami Herald via Governing | As MiamiCoin Crypto Continues to Grow, Miami Gets 30%

What’s happening? Sen. Amy Klobuchar introduced a bill this week to strip online platforms like Facebook Inc. and Twitter Inc. of liability protections if their technology spreads misinformation about coronavirus vaccines or other public-health emergencies.

Why is this important? The bill tracks a report from the Center for Countering Digital Hate that says the majority of misinformation comes from 12 social media users.

How will this be important? Tech Leaders have indicated a modicum of support for amending the liability protection in Section 230, a provision in the 1996 Communications Decency Act

Market Watch | Bill aims to strip Facebook, Twitter of protections for spreading health misinformation

What’s happening? On Tuesday it was announced by PolyNetowrk that hackers stole $600 million in various cryptocurrencies from its network. PolyNetwork asked the hackers to return the funds. As of this $4.8 million have been returned.

Why is this important? How do you enforce when the crypto is stored by blockchain, in multiple parts on multiple servers and US financial regulators are pushing to make cryptocurrency easier to trace.

How will this be important? The industry is asking and moving to self regulate and secure their assets.

Cyber Scoop | Hackers returned some of the $600 million they stole from Poly Network, a cryptocurrency firm

What’s happening? Anchorage Digital won a DOJ contract to store and liquidate digital assets that federal law enforcement seizes following criminal investigations

Why is this important? Anchorage Digital is also the 1st federally chartered bank for crypto

How will this be important? This will also be an issue for state regulators and it’s super new.

ReCode | Feds are seizing cryptocurrency from criminals. Now they have to figure out what to do with it.

What’s happening? NYC Council passed an ordinance requiring a delivery service to share customer service with restaurants. Council members say they are helping restaurants by passing this measure. Opponents say it is hasty and replete with unintended consequences.

Why is this important? We’re relying more and more on delivery in this COVID world.

How will this be important? How governments handle regulating delivery services and the data that is accrued and shared among vendors.

Daily News | Send back the bad food delivery bill

What’s happening? This week is was revealed that some EV chargers have a flaw that make them vulnerable to hackers.

Why is this important? The security firm that identified the flaw says the flaw could have been exploited by a “malicious hacker to hijack user accounts, impede charging and even turn one of the chargers into a “backdoor” into the owner’s home network.”

How will this be important? It begs the question about protection for the good hackers who identify these problems. It also illuminates flaws in data security requirements for the internet of things- including EV charging stations.

Tech Crunch | Security flaws found in popular EV chargers

What’s happening? You know those states we’ve talked about that are providing liability protections for businesses that up their data security standards. The OH, UT, and CTs of the U.S.? Well, CT also removed the option of punitive damages. I’m pretty sure at least OH did too.

Why is this important? More data breaches, more ransom ware, the more potential for litigation. The more litigation, the more businesses asking for liability protection legislation.

How will this be important? 3 of 50 states have acted on this…. How many states do you know that like art reform legislation like this…

National Law Review | Connecticut Does Away With Punitive Damages in Certain Data Breach Litigations

What’s happening? The federal infrastructure bill has $1billion for state and local cybersecurity. It can be appropriated like this:

• 80% of funds must be sent to local entities by the state
• 25% reserved for rural areas
• There is also a $250 million grant program for rural and municipal utilities
• Both grant programs require a cybersecurity plan be submitted to the U.S. Department of Homeland Security for review.

Why is this important? “State and local governments need more resources to prevent cyberattacks that can devastate their ability to carry out day-to-day functions that citizens rely on, from protecting school data to keeping utilities up and running,” – U.S. Senator Maggie Hassan

How will this be important? We have states passing laws prohibiting ransoms from being paid when local governmental systems have been locked by ransomware. Cybersecurity is an ongoing funding item.

Route Fifty | Infrastructure Bill Includes $1B for State and Local Cybersecurity

What’s happening? This year Maine became the 1st state in the nation to ban the use of facial recognition software.

Why is this important? Bans of facial recognition software up until then had been highly local and limited to county or city government bans.

How will this be important? Maine is talking about it in terms of civil liberties and personal privacy.

Q106.5 | FACIAL RECOGNITION TECHNOLOGY? NOT IN MAINE.

What’s happening? Fortune is profiling Caitlin Long who has helped pass 24 crypto friendly bills to make WY the wild Wild West of BlockChain.

Why is this important? She is  CEO of “crypto bank” startup Avanti Financial Group

How will this be important? WY is setting itself up to have the first crypto bank

Fortune | How Caitlin Long turned Wyoming into crypto country

What’s happening? The Freedom Fest which use to be in Las Vegas, and for 2021 is in South Dakota, because it has the fewest COVID restrictions is lumping together 2nd amendment advocates, rights for sex workers and crypto currency supporters. They describe themselves as trending libertarian.

Why is this important? Crypto currency policy is so new, this could be part of a road map to figure out who your allies are.

How will this be important? Tracking the similar supporting causes helps you understand the playing field.

SDPB | ‘Freedom Fest’ Brings Thousands To Black Hills

What’s happening? States like NY, NC, TX & PA are considering legislation to prohibit state governmental entities and local governmental entities from paying ransoms to ransomware

Why is this important? Ransomware attacks are increasingly common and how their handled varies. By removing the ability to pay, the policy logic is the state also removes the likelihood of attack. If these measures succeed, then are businesses more likely to be attacked? Do we see the next round of legislation that prohibits businesses from paying a ransom?

How will this be important? Some hackers may hack for the ransom and some may hack for the disruption. Forcing a city or state to rebuild their systems can be costly and time consuming.

Route Fifty | States Weigh Bans on Ransomware Payoffs

What’s happening? Georgia, the country, is placing some its wine production on blockchain allowing investors and enthusiasts to track provenance and buy and sell associated non-fungible tokens 

Why is this important? First, NFTs are new, hot items. Secondly, the blockchain tracking of Provence will improve the reputation of Georgian wines and will be tied to its wine’s quality-assurance standard

How will this be important? The legislation beings together the wine industry, blockchain technology companies and customers.

NASDAQ | Georgia to Put Its Wine on the Blockchain

What’s happening? The EU is adopting new rules requiring those who send and receive cryptocurrency to track senders and recipients

Why is this important? to keep track of dirty money transactions, which is largely the same rules that exist for wire transfers

How will this be important? These new rules can track down money launders and those who finance terrorism

Thompson Reuters | EU to tighten rules on cryptoasset transfers

What is happening? CT is starting an incentive program for businesses to adopt cyber security measures. HB 6607 (2021 | CT)

Why is this important? The goal is to “reward companies for creating and maintaining a written cybersecurity program with administrative, technical and physical safeguards to protect both personal information and the businesses’ confidential data.”

How will this be important? Companies will receive liability protection just like OH and UT.

MSSP | Connecticut offers incentives to businesses, MSSPs to install cybersecurity controls

What’s happening?

• 21 states considered blockchain legislation
• Miami considered paying its workers in cryptocurrency
• Miami considered receiving tax payments in cryptocurrency
• SF 38 (2021 | WY) in Wyoming made WY the first state to recognize decentralized autonomous organizations (DAOs)
  • Fun fact: WY was the first state to recognize the LLC in the 1970s

Why is this important? Other states are going to start recognizing DAOs

How will this be important?

• There’s an argument that storing information on blockchain’s distributed ledger is safer from hackers.
• In 2019 Colorado passed SB 19-023 (2019-CO) that exempts some digital assets from state securities regulations

Governing | Mountain West Extends Blockchain’s Digital Frontier

What’s happening? last year there was a 400% increase in ransomware. Cyber Insurance payouts top 70% of break even.

Why is this important? This means it is no longer not cheaper to not pay the criminals. Now the insurers pay the criminals.

How will this be important? Commerical premiums jumped 39% in March 2021. This is an intersection of a lot of funds and hackers.

AP | In crosshairs of ransomware crooks, cyber insurers struggle

What’s happening? Coca Cola has added Chief privacy officer to “define global privacy and legal personal data strategy.” The new privacy officer is also a she according to the link.

Why is this important? It wasn’t that long ago we started seeing Information officers and then Sustainability officers, and now Let’s welcome Data Privacy officers.

How will this be important? Coca Cola won’t be the first.

Bloomberg Law | Coca-Cola Adds Privacy Chief in Reshuffling Under New Top Lawyer