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
Michael was recently quote in The T and D.com. See an excerpt below:
Retail giants aren’t the only target of hackers who infiltrate computer systems to gain access to sensitive information.
The federal government also falls victim, such as recently when the Obama administration revealed that 21.5 million people were affected by a breach at the Office of Personnel Management.
Social Security numbers and other records were stolen, and likely anyone given a government background check in the last 15 years was affected.
That’s disturbing, both because it happened and because of the ease with which the hackers were able to circumvent government security measures, cyber security expert Michael J. Daugherty says.
“The government is quick to criticize security breaches and weaknesses in the private sector, but isn’t able to shore up its own weaknesses,” says Daugherty, author of the book “The Devil Inside the Beltway: The Shocking Expose of the U.S. Government’s Surveillance and Overreach into Cybersecurity, Medicine and Small Business” (www.michaeljdaugherty.com).
To read the full article click HERE
To see more of this series of videos, click here.
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The Devil Inside the Beltway can be purchased:
Do you have information about Tiversa you would like to share?
Email Michael
ATLANTA, GA–(Marketwired – Aug 21, 2015) – Michael Daugherty, a cybersecurity expert and author of the book “The Devil in Inside the Beltway” (www.michaeljdaugherty.com), will be a case-study speaker at the Gartner Security & Risk Management Summit in Sydney, Australia.
The summit, scheduled Aug. 24-25, is Daugherty’s first stop on a speaking tour of Australia.
Daugherty’s speech at the Gartner summit is titled “A Matter of Style — How America’s FTC’s Tricks, Tactics and Agenda Impact World Cybersecurity.”
The Gartner summit is designed to equip security and risk managers with the skills, knowledge, strategies and tactics that enable cost-effective security and risk management programs.
Daugherty, speaking on day two of the summit, will discuss the story told in his book of his experience with the Federal Trade Commission. That experience began in 2008 after his company, LabMD, received a call from Tiversa, a technology security firm. Tiversa claimed that LabMD patient-billing information was vulnerable and offered its services, for a fee, to fix the problem, Daugherty says.
He viewed the call as a shakedown and declined. Tiversa turned over its information to the FTC, which launched an investigation. In August 2013, the FTC filed a formal complaint, alleging that LabMD failed to reasonably protect the security of consumers’ personal data, including medical information.
Daugherty scored a significant victory May 5 when a former Tiversa employee testified in the FTC case that Tiversa did not find LabMD patient information on Internet sites, but instead hacked into LabMD’s computer system.
Daugherty recently spoke on cybersecurity and healthcare at a Black Hat USA security gathering in Las Vegas and at the annual DefCon hacking conference.
The above is a press release that was picked up by Reuters here
Michael recently appeared on CBN News to discuss hacking. See the click on Michael on the broadcast below.
Hundreds of thousands of Americans will soon get letters from the IRS and it’s not good news.
The agency will be informing more than 330,000 people that their accounts may have been hacked.
Cyber security expert Michael Daugherty told CBN News there’s not much you can do to protect yourself once the government has your information.
The problem is most of the danger is where you have already sent your information — the government,” he said. “Big medical facilities, banks, financial.”
To read the full article, click here
ATLANTA, Ga. – Michael Daugherty, a cybersecurity expert and author of the book “The Devil in Inside the Beltway” (www.michaeljdaugherty.com), will be a case-study speaker at the Gartner Security & Risk Management Summit in Sydney, Australia.
The summit, scheduled Aug. 24-25, is Daugherty’s first stop on a speaking tour of Australia.
Daugherty’s speech at the Gartner summit is titled “A Matter of Style – How America’s FTC’s Tricks, Tactics and Agenda Impact World Cybersecurity.”
The Gartner summit is designed to equip security and risk managers with the skills, knowledge, strategies and tactics that enable cost-effective security and risk management programs.
Daugherty, speaking on day two of the summit, will discuss the story told in his book of his experience with the Federal Trade Commission. That experience began in 2008 after his company, LabMD, received a call from Tiversa, a technology security firm. Tiversa claimed that LabMD patient-billing information was vulnerable and offered its services, for a fee, to fix the problem, Daugherty says.
He viewed the call as a shakedown and declined. Tiversa turned over its information to the FTC, which launched an investigation. In August 2013, the FTC filed a formal complaint, alleging that LabMD failed to reasonably protect the security of consumers’ personal data, including medical information.
Daugherty scored a significant victory May 5 when a former Tiversa employee testified in the FTC case that Tiversa did not find LabMD patient information on Internet sites, but instead hacked into LabMD’s computer system.
Daugherty recently spoke on cybersecurity and healthcare at a Black Hat USA security gathering in Las Vegas and at the annual DefCon hacking conference.
For more details and an events summary, click here.
