The rapid development of artificial intelligence (AI) is continually improving the ability of business to generate useable and productive insights from Big Data, while highlighting the importance of privacy and security around data collection and storage. The challenge for companies is ensuring compliance with varying jurisdictional regulations. A number of countries have data protection and privacy laws with draconian fines and, given the global nature of the web, this puts the onus on companies to ensure their cybersecurity protocols are exemplary. The potential costs to a company, as well as the damage caused to consumer confidence by data breaches, converted this into a US$75B industry globally last year. The projected growth forward is strong.
We are advising a London Stock Exchange-listed payment provider in relation to one of the largest reported breaches of information security in the UK. We were able to recover more than eight million records and undertook a search of the "dark web" to ensure that no versions of our client's database were being illegally traded. Some of these records were from a company our client had recently bought, bringing to light the need for adequate disclosures and warranties in relation to legacy cybersecurity liabilities. We are also advising our client on the operation of a "Bug Bounty" program, which found that as a result of errors by a third-party contractor it was possible to freely access a large number of personal documents, including passports, on a web server. We helped determine whether there had been any unauthorized access of those documents during the period that the cybersecurity vulnerability existed, and were able to provide reassurance to the client and recommendations for future development.
We continue to advise SoftLayer on the US$1B+ global expansion of its data centers in Asia, Europe, Latin America, and the U.S. SoftLayer, an IBM company, is a leading provider of products and services related to private and hybrid cloud solutions. Over the past year, we have advised our client on more than a dozen major transactions involving leasing and developing data center facilities. We have also advised IBM on expanding its data center capabilities, including a recently completed transaction in Africa.
We are helping a start-up navigate the changing regulatory environment facing financial technology companies and determine its compliance obligations under U.S. information security and data privacy laws. Our client has developed an innovative application program interface that enables developers to access banking data. Drawing on our lawyers' expertise in financial services and privacy law, including the Gramm-Leach-Bliley Act (GLBA) and Fair Credit Reporting Act (FCRA), we identified our client's compliance obligations and highlighted areas most likely to be of interest to regulators.
When the subsidiary of a major cellphone manufacturer was struck by a Chinese cyberattack, the company turned to Paul Hastings for help. We worked with our client to oversee the internal cyber review, regulatory investigation, and incident response. Our team also provided advice on engaging a forensics firm, handling public relations efforts related to the attack, and addressing other liability concerns. Drawing in part on our strong relationships with the Department of Homeland Security/US-CERT Program and the FBI and our experience with Chinese cyberattacks, we helped the client in its efforts to confirm that the attack did not compromise consumer information or the company's critical intellectual property.