Michael was recently interviewed by Stephen K. Bannon. The following article accompanies the interview. The original can be found here.
Author Michael Daugherty believes that technology as a “double-edged sword” will be responsible for major shifts in the workplace, as companies seek a level of efficiency that will cause jobs to “evaporate.”
I interview Mike Daugherty – author of The Devil Inside the Beltway live from the Security Advisor Alliance first-ever Summit in Dallas, TX. Mike was kind enough to sit down with me (twice, thanks to a tech failure) and tell his absolutely surreal story of what happened to him, his company at the hands of what can only be described as an insane situation.
If you own a business, or manage a business, or work in enterprise — you need to hear Mike’s story. If it wasn’t documented and video recorded, you’d never believe it’s true.
Truth be told, I’ve been a supporter of the FTC as an advocate for the victims of breaches – the person who’s information is stolen. After hearing Mike’s story… I have had my mind completely changed.
Host Brian Wesolowski sits down with Michael Daugherty to discuss in-depth his recent court win against the Federal Trade Commission, how the long-term experience turned into his recent book “The Devil Inside The Beltway,” and more. The issue at hand raises questions about the agency’s ability to protect consumers against risky business practices that have not yet led to actual harm.
Reblogged from here
The Federal Trade Commission routinely holds companies responsible for data breaches that expose consumers’ private data to intruders. But the commission’s recent loss in the case of LabMD raises questions about its ability to prevail in other consumer cybersecurity cases.
The agency had sought to hold the medical testing lab responsible for a data breach that exposed the records of 9,000 patients. But LabMD fought back, refusing to sign a consent order and arguing that there was no proof any consumer had suffered any actual harm as a result of the breach.
Late last week, FTC Chief Administrative Law Judge Michael Chappell agreed and dismissed the commission’s complaint.
“FTC spent millions of taxpayer dollars to pursue its baseless case against LabMD, an innovative and successful provider of cancer diagnostics,” said Daniel Epstein of Cause of Action Institute, which defended LabMD. “Although FTC’s ostensible justification for this boondoggle was ‘data security,’ it produced no evidence that even a single patient was harmed by LabMD’s alleged inadequacies.”
Michael was interviewed, drop by the post and listen to the interview here
After seven contentious years, LabMD won a major victory in its legal battle with the Federal Trade Commission. But CEO Michael Daugherty says his recent triumph could be short-lived, and he’s hoping – long term – that he case shines a new light on FTC’s data security enforcement practices.
The Wall Street Journal: “The Federal Trade Commission’s Data-Security Enforcement Efforts Have Received A Setback—At The Hands Of The Commission’s Own In-House Judge. Administrative Law Judge D. Michael Chappell late Friday dismissed a long-running and sometimes bitter case involving LabMD, a former medical testing company the FTC accused of failing to provide reasonable or appropriate cybersecurity protections for patient data.”(Brent Kendall, “Federal Trade Commission Loses Data Security Ruling,” http://blogs.wsj.com/law/2015/11/16/federal-trade-commission-loses-data-security-ruling/tab/print/)
“In A Data Security Enforcement Action That Some Have Characterized As A Modern Version Of David Vs. Goliath, David Won Today, And The FTC Lost.It was an enforcement action that the FTC never should have commenced, as I’ve argued repeatedly, and today’s loss may actually make future enforcement actions more difficult for them as the standard for demonstrating likelihood of substantial injury has now been addressed in this ruling.”(Dissent, “FTC V. LabMD Ruling Issued: FTC Loses Data Security Enforcement Case,”Databreaches.Net, 11/13/15)
Welcome back to the video series, The Devil Inside the Beltway.
This week is Episode 4: The Conspiracy. Had I Cracked the Case.
“When I came back from D.C. I realized that the only one who was going to come to the rescue of my company (LabMD) was me. Had I cracked the case?”
Episode Four of an eight part saga based on the book by Michael J. Daugherty, The Devil Inside the Beltway – The Shocking Exposé of the US Government’s Surveillance and Overreach into Cybersecurity, Medicine and Small Business.
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On September 16, 2015, closing arguments were held in FTC Administrative court in Washington, DC.
This is the court Congress created over a century ago. They allowed this court to be subject to FTC rules. Rules that are stacked way in the FTC’s favor. And because Congress created the beast there is very little the courts can do about what goes down here.
When you read the transcript you will immediately note the judge going after the FTC. You’ll note his frustration as he grapples with the fact that the FTC argues that their behavior before they sued LabMD is irrelevant.
Working with thieves, not cooperating with a congressional investigation, not verifying evidence, refusing to tell the court or the world what standards and rules exist for cybersecurity compliance, destroying a medical facility, allowing hearsay, recusing a commissioner, speaking to the press, knowingly relying on tainted evidence and still moving forward, and helping create a third party shell company to deceive the public….none of this matters.
At least until they want to use some of it to lie about LabMD.
And because they write the rules, stack the deck, and lie to win….they just might just get away with it. Morality and truth isn’t on the table here. Only shredded reality. Please think hard if this is who you want our government regulating cybersecurity.
The FTC IS CHOCKED FULL OF LAWYERS who don’t care what carnage they wreak on the backs of consumers.
Our cyberdefences are way down and that’s due to their bully idiocy. Enjoy the show…but their tactics will not create a safer world.
Welcome back for Episode 2: The Game Begins