Cyber Incidents After The Holidays

Cyber Incidents After The Holidays

January often reveals what happened while offices were closed. Inboxes were compromised, forwarding rules were created, cloud folders were accessed, and payment instructions were altered. New Jersey law does not pause for closures. The duty to investigate and, when required, to notify affected residents applies with the same force whether the breach was discovered on a weekday morning or on the evening of December twenty third. A disciplined response that preserves evidence, restores security, and meets statutory notice obligations protects both the company and its customers.

What Triggers A Legal Breach In New Jersey

New Jersey’s breach framework focuses on unauthorized access to personal information. Personal information includes a resident’s name combined with a Social Security number, a driver’s license or state identification number, or a financial account number with any required code that permits access. When a mailbox, file share, or system holding any of these data points is accessed by an unauthorized party, the company must determine the scope of the intrusion and whether personal information was actually accessed. If it was, the obligation to notify is triggered. If it was not, the company should document the investigation and the basis for that conclusion.

The New Jersey Data Breach Notification Law (N.J. Stat. Ann. §§ 56:8-161 to 56:8-166) requires entities that maintain computerized personal data on New Jersey residents to notify those residents, and the New Jersey State Police, of any breach involving unauthorized access to personal information.The law defines personal information as an individual’s first name or first initial and last name linked with any of the following: Social Security number, driver’s license number, or account number plus any required access code or password.

Immediate Containment And Proof Of Action

Containment comes first. Reset affected credentials, revoke active sessions, remove malicious forwarding rules, and confirm that multifactor authentication is active and working. Isolate compromised devices and cloud tenants. Lock finance procedures so that any payment change requires verbal verification with a known contact. At the same time, start a simple incident log that records dates, times, systems affected, the steps taken, and who performed them. This log will anchor your notifications, your insurer report, and any later regulatory review.

Notice To Law Enforcement And Residents

A company that maintains computerized records for New Jersey residents must notify the New Jersey State Police before notifying residents. This step allows law enforcement to request a short delay if public notice would impede an investigation. Once that hold, if any, is lifted, residents must be notified in the most expedient time possible and without unreasonable delay, consistent with the need to determine scope and to restore integrity. If more than one thousand residents will be notified, the nationwide consumer reporting agencies must also be notified. These requirements apply regardless of whether an out of state vendor or platform was involved, and they apply even if the incident originated from a single compromised mailbox.

Resident Notices That Withstand Scrutiny

Notices must be clear and factual. They should identify the time window of the incident, the types of personal information involved, and the steps taken to secure the environment. They should explain what residents can do, including placing fraud alerts and security freezes. Where Social Security numbers or financial account data with access codes are implicated, credit monitoring is a prudent measure. Keep copies of every notice, the mailing list or distribution list, and the date sent. Consistency between internal communications, insurer reports, and resident notices matters.

Vendors, Contracts, And Insurance

Incidents often involve managed service providers, cloud platforms, benefits administrators, or payment processors. Contracts typically require immediate notice and cooperation. Provide written notice to each vendor, ask for logs and timelines, and record their responses. Tender the incident to your cyber insurer or, if none, to your general liability carrier, since many cyber endorsements are issued as part of package policies. Early notice secures coverage, assigns a breach coach and forensics, and prevents disputes over late reporting.

Scoping A Mailbox Or Cloud Compromise

January incidents frequently start with a single mailbox. A proper investigation asks which messages were accessible, whether messages containing personal information were opened or exfiltrated, and whether any forwarding or deletion rules were created. For a file share, determine the folders accessed and the duration of access. Keep a record of the specific searches used to locate personal information and preserve the exported evidence and logs so the basis for a notification decision can be shown later.

Payments, Diversion Attempts, And Business Email Compromise

Attackers often use a compromised mailbox to redirect payments. Close these paths immediately. Require verbal verification using a known number for any vendor banking change or off cycle payment. Suspend creation of new vendor records until finance leadership approves. If funds were diverted, notify the bank and law enforcement at once and notify affected counterparties with a factual explanation of what happened and the steps taken to prevent recurrence.

Preservation, Privilege, And Communications Discipline

Preserve logs, alerts, tickets, emails, chat threads, and vendor correspondence. Issue a written litigation hold as soon as counsel is engaged. Route investigative work through counsel to support privilege over legal advice and strategy. Keep internal messages factual and avoid speculation. Align public statements with the resident notice and law enforcement communications so the record reads as consistent and measured.

Ransomware, Backups, And Restoration

If systems were encrypted during the closure, verify backups and restoration paths before considering other options. Document the decision process with counsel and your insurer. If personal information was accessed before encryption, notification duties may still apply even if operations are restored quickly. If encryption occurred without evidence of access to personal information, document that finding with forensics while you complete restoration.

What Regulators And Plaintiffs Examine

Scrutiny focuses on speed, accuracy, and evidence. Regulators and plaintiffs’ counsel ask for the timeline, the forensic findings, law enforcement coordination, copies of notices, vendor contracts, proof of multifactor authentication, and logging and access control settings. They test whether resident notice was sent without unreasonable delay after scope was determined and whether the State Police were notified first. Companies that act promptly, keep a clean file, and communicate accurately are positioned to defend their decisions.

Conclusion

January should begin with an honest assessment of what happened during closures and a clear plan to respond. Contain the incident, document every step, notify the State Police when required, and deliver clear resident notices without unreasonable delay. Engage insurers and vendors in writing, and preserve the evidence that supports your decisions. Tighten payment change controls and verify multifactor authentication across accounts. This approach satisfies New Jersey’s legal standards and places the business in a stronger position if questions arise later in the year.

For more information about your legal rights or to schedule a consultation, please contact the Law Offices of Peter J. Lamont at www.pjlesq.com, call 201-904-2211, or email info@pjlesq.com.

Contact us today to discuss your business or legal matter. Put our 20+ years of legal experience to work for you.

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For detailed insights and legal assistance on topics discussed in this post, including litigation, contact the Law Offices of Peter J. Lamont at our Bergen County Office. We're here to answer your questions and provide legal advice. Contact us at (201) 904-2211 or email us at  info@pjlesq.com.

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About Peter J. Lamont, Esq.

Peter J. Lamont is a nationally recognized attorney with significant experience in business, contract, litigation, and real estate law. With over two decades of legal practice, he has represented a wide array of businesses, including large international corporations. Peter is known for his practical legal and business advice, prioritizing efficient and cost-effective solutions for his clients.

Peter has an Avvo 10.0 Rating and has been acknowledged as one of America's Most Honored Lawyers since 2011. 201 Magazine and Lawyers of Distinction have also recognized him for being one of the top business and litigation attorneys in New Jersey. His commitment to his clients and the legal community is further evidenced by his active role as a speaker, lecturer, and published author in various legal and business publications.

As the founder of the Law Offices of Peter J. Lamont, Peter brings his Wall Street experience and client-focused approach to New Jersey, offering personalized legal services that align with each client's unique needs and goals​.

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