A government inquiry in the context of data security typically arises in one of two ways: either a data security incident involving a threat actor occurs, or a government agency is alerted to the possibility that a company is engaging in unlawful practices involving sensitive data. In both instances, it is not uncommon for a government agency to open an inquiry that could last months or even years.
Congress has recently considered numerous bills seeking to impose stricter laws over matters of data governance, including a bipartisan Senate bill that would require some businesses to report data breaches to law enforcement within 24 hours or risk financial penalties and the potential loss of government contracts. As legislators and regulators debate whether to mandate reporting and disclosure of all cybersecurity breaches, companies should be prepared to respond swiftly and intentionally when faced with a government inquiry.
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