![]() The FTC’s Division of Privacy and Identity Protection, which oversees issues related to consumer privacy and information security, among other things, ultimately investigated both the nature and circumstances of that breach and Uber’s broader cybersecurity program. Prosecutors said trial evidence established that while Sullivan was serving as chief security officer, Uber was under investigation by the Federal Trade Commission (FTC) as a result of a data breach Uber suffered in 2014. “To avoid such debacles, executives should take cybersecurity extremely seriously, establishing and enforcing a long-term data protection strategy within their organizations,” Kolochenko says. But he notes that in Finland, a former CEO of a breached healthcare recently received a 3-month suspended sentence. Kolochenko says most countries are enthusiastically developing new legislation that provides administrative, civil and even criminal sanctions for corporate management. “The decision will be prudently regarded through the prism of rapidly growing personal liability of cybersecurity executives and board members for security incidents and data breaches.” Avoiding ‘Debacles’ “The no-prison sentencing decision is certainly a relief for many cybersecurity executives who were closely watching this unprecedented incident, says Ilia Kolochenko, founder of ImmuniWeb and a member of Europol Data Protection Experts Network. With the concern about liability for data breaches in the C-suites, there may be a movement by executives to protect themselves in employment contracts from having to shoulder the burden for legal expenses in cases like this. Some question whether the sentencing amounts to a slap on the wrist due to the considerable threat data breaches are posing to the U.S. Orrick after a jury rendered its guilty verdict in October. The sentence was handed down in California by the U.S. District Court in San Francisco to 3 years of probation, 200 hours of community service and ordered to pay a $50,000 fine - but he will not spend a day in prison. Joe Sullivan, 54, was sentenced recently in U.S. The security world took notice when Uber’s former security chief was charged and convicted last year of covering up a data breach at the company.
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