Interview

Joy Tiz Interviews Michael Daugherty

03 Jan InformationWeek Hits and Joy Tiz Interview

It was a busy media month! InformationWeek covered my story in their article “Patient Data on Filesharing Service Provokes Legal Trouble”. It’s a very well written article by William Jackson.

Also, check out my interview with Joy Tiz. We discuss the book, the negative implications of ObamaCare, and the importance of Millennial’s for America’s future. You can listen below:

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18 Sep Critics tell FTC to back off on data security complaints

 

The agency has no specific data security rules and operates from a vague statute, critics say

The FTC should back away from authority it says it has under a vague section of law that doesn’t mention data security, said the critics, including Mike Daugherty, CEO of Atlanta diagnostic lab LabMD, which is fighting an FTC complaint.

The agency should instead seek specific authority to enforce data security rules from the U.S. Congress and should define what data security standards it expects from companies, instead of seeking sanctions on a case-by-case basis, said speakers during a discussion on FTC authoritysponsored by TechFreedom, an antiregulation think tank, and Cause of Action, a government watchdog group defending LabMD.

The FTC’s complaint against the small lab wasn’t based on established rules that agency officials could point to, Daugherty said.

The FTC, instead of looking for real consumer harm, seems to be saying, “We’re going to take one victim and going to hold them accountable,” said Gerry Stegmeier, a privacy and data security lawyer.

 

Find more of the story here.

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17 Sep Meet Michael Daugherty in Las Vegas September 18th

Network Security 2013 come meet Michael Daugherty and hear about his story.

InfoSec Vertigo: Small Medical Lab Wages War Against InfoSec Vendor, US Government, and Big DC Law Firm

  • Benjamin Wright and Michael Daugherty, President of LabMD
  • Wednesday, September 18th, 7:15pm – 8:15pm

Chilling true story: Aggressive infosec vendor magically acquires patient file from small medical lab, then campaigns for a hefty fee to ‘remedy’ the problem. Lab refuses to pay; vendor conveniently gives the file to US Federal Trade Commission, saying it was compromised in a security breach. Years of investigation and litigation ensue. Learn how our legal system separates fact, fiction, and ego in a modern cyber security incident.”

You can find more information here.

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16 Sep Washington Journal talks about Michael Daugherty and his FTC fight

 

LabMD CEO Michael Daugherty fights ‘The Devil Inside the Beltway’

 

Photo by Kent Hoover Michael Daugherty, CEO of LabMD, talks about his company's battle with the Federal Trade Commission at a briefing held by Tech Freedom and Cause of Action.

Photo by Kent Hoover
Michael Daugherty, CEO of LabMD, talks about his company’s battle with the Federal Trade Commission at a briefing held by Tech Freedom and Cause of Action.

 

 

 

 

 

 

 

 

 

 

 

 

You might think that LabMD is fighting a lonely battle against the Federal Trade Commission — most businesses accused by the agency of failing to “reasonably protect” the security of its customers’ data settle their cases. But LabMD not only is challenging the FTC’s complaint, its CEO also is using this case to make a point about out-of-control regulators. He’s written a book, “The Devil Inside the Beltway,” and he’s found allies in Washington, D.C. On Thursday he was the star panelist at a briefing held by Tech Freedom and Cause of Action, two organizations that question the FTC’s approach to data security.
Business owner: Michael Daugherty, president and founder of LabMD, a 25-employee medical testing lab in Atlanta.
FTC complaint: The agency last month filed a complaint accusing LabMD of failing to “take reasonable and appropriate measures to prevent unauthorized disclosure of sensitive consumer data.” Billing data, including Social Security numbers, for more than 9,000 patients of LabMD were found on a peer-to-peer file-sharing network, and LabMd documents containing sensitive personal information were found in the hands of identity thieves in 2012.
How the breach occurred: Daugherty said he learned of the problem when a cybersecurity firm contacted him in 2008 and said it saw one of LabMD’s billing files on a peer-to-peer network. LabMD had firewalls and servers to protect customers’ data, but one of its employees violated company policy and installed Limewire, a peer-to-peer file-sharing network, on her computer in order to listen to music. This made the billing information on her computer available to outsiders. Daugherty said LabMD immediately corrected this vulnerability when it discovered it.

Read the rest of the story here

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