Recently a story from the Associated Press titled “Careful: Employee E-Mails, IM’s Must Be Tracked,” which concerns the new Federal Rules changes, that took effect December 1, 2006. This story was focused on companies involved in federal litigation and the production of electronically stored information as part of the discovery process and how companies need to comply with federal law changes that may have a definitive impact on companies who don’t keep track of all their electronic data.

New Federal Rules on Electronic Data and the Impact on Business Practices

When you look at the new Federal Rule changes that took affect December 1, 2006, many companies may not be prepared and may not have the resources to handle these changes or understand what these changes require or impact “business as usual.” Many companies have already experienced the impact of digital evidence when handling issues in the workplace including both internal and external threats and subsequently need to gather potential electronic evidence. Frequently these companies have been faced with the need to utilize reactive measures and interventions instead of proactive protocols and procedures, which may have saved a great deal of money and bad publicity. Now companies no longer have that choice and a proactive approach has become a necessity.

With the change in Federal Rules, companies now need to take a look at all Human Resource and Information Technology Polices, examine what governing laws may affect operations and implement a plan to address the strong possibility that internal and/or external digital threats may be realized. Companies are now in a position that require processes and procedures to be in place for C-Level and management personnel to follow when, not if, workplace issue lead to litigation. Companies that choose not to comply may find themselves in a legal vat of “hot water” for noncompliance or may meet with additional unwarranted expenses and judicial determinations not favorable to effective and successful business practices.

Relevant Scenarios Examples

• Employee issues
  • Sexual harassment via email, text messaging, digital cameras
  • Wrongful firing
  • Employee computer misuses/malfeasance
  • Attempt to erase and delete information
• Company being accused of wrongful allegations
• Employees taking proprietary information to new companies
• Consultants utilizing proprietary information
• SEC Investigations
• Network Intrusions-
  • Trade theft
  • Economic espionage
  • Terrorist activities

With the new federal rules in place companies who have complied will be in a position to effectively contend with issues with the least amount of monetary losses and public scrutiny.

Proactively Complying and Changing “Business as Usual”

Capitol City Consulting, LLC has been anticipating these changes for more than a year. Therefore, clients have already benefited from changing policies and procedures, which have enabled companies to produce potential large data requests when litigation ensues. Utilizing a Digital Forensic Firm has become a greater necessity to corporations where a non-biased firm can verify and validate incidents and advise on following proper handling procedures such as-chain of custody. Other returns for employing a Digital Forensic Firm is the cost effectiveness of having highly skilled, trained, experienced and certified professionals providing this service. Companies do not need to invest the thousands of dollars internally for the training necessary to keep digital forensic staff up to date with certifications or the thousands of dollars to maintain a digital forensic lab necessary to evaluate digital information without compromising the integrity, as required by law.

CCC stresses, companies choosing to remain out of compliance may become liable or even perpetrate crimes themselves unintentionally due to unforeseen boundaries that may be crossed when an incident occurs and the process of handling that specific incident.

CCC has not been immune to the changes either, as the company has had to update internal protocols and preparedness for handling large amounts of data. Due to these changes, Digital Forensics Firms are experiencing cases with extremely large amounts of data previously unseen and the size of digital information only continues to grow exponentially. CCC has continually responded to these changes by upgrading the Digital Forensic Lab and continued specialized training for the computer forensic personnel.

With the different types of digital media on the market such as cell phones with cameras, PDA’s, MP3 players, flashsticks and thumbdrives, it makes it much harder for companies to keep track of these various devices within the workplace. What is going in and out of your company on these devices? Companies again need to make sure that their business policies are prepared to respond to these continual upgrades in technology. Companies may need to regulate such devices or even eliminate these devices in the workplace as a proactive measure to prevent loss of data, trade theft or misuse of data.

Capitol City Consulting, LLC Digital Forensic Services

Capitol City Consulting, LLC (CCC) of Raleigh, NC provides Digital Forensic Services to Corporations, Law Firms, Government Agencies, Law Enforcement and Academia not only in North Carolina but across the nation. Since 2002, CCC has be located in downtown Raleigh providing Forensic Examinations of computers, cell phones, PDAs, Networks and any device storing digital information. CCC works with cases spanning an extensive range including Divorce, Employment issues, Embezzlement, Fraud, Child Pornography, Trade Theft, Homicides, and SEC Investigations as well as Criminal and Civil cases. Additionally, CCC provides consulting services on E-Discovery, Litigation support, and testifying in court. President and Sr. Forensic Examiner of CCC, Giovanni Masucci, is no stranger to the forensic community nationally or here at home in NC. He and CCC Computer Forensic Examiners have provided training, education, forensic services, consultation and forensic personnel to local and national corporations and law firms as well as academic institutions, NC Bar Association, various professional associations, government agencies and law enforcement.

For additional information or questions, please contact: Capitol City Consulting, LLC; Office: (919)754-8644; Fax: (919) 754-8334; Email: csi@capitolcityconsulting.com