[IT Litigation] Legal Response Measures Companies Should Take for Generative AI and IoT Hacking Damage

The advancement of the Internet of Things (IoT) and generative Artificial Intelligence (AI) is bringing about important technological innovations that increase the efficiency of corporate operations and create new business opportunities. However, at the same time, companies must prepare for new IT security threats and legal issues. Especially, if security vulnerabilities in IoT devices and AI systems are exploited, it can lead to serious damages such as leakage of corporate trade secrets, service interruptions, and legal liabilities, so minimizing legal risks through a proactive approach and establishing a stable operating environment is important.

Increasing Cybercrime Utilizing IoT and Generative AI

According to the latest security trends provided by search portals such as Google, hacking cases utilizing IoT and generative AI are expected to increase. IoT devices are often vulnerable due to their characteristics, and AI-powered automated attacks are becoming more sophisticated.

In particular, if a security breach occurs through IoT devices, companies can suffer massive damage such as the paralysis of internal systems or the leakage of trade secrets. Search data also shows an increase in searches related to IoT hacking and AI security threats, which demonstrates an important risk factor that companies must prepare for.

On the dark web, malicious generative AI models are emerging, such as Fraud (scam)GPT and GPT for generating malicious code worms, and attacks utilizing API key theft, plugins, and extension vulnerabilities are also increasing. When companies integrate AI systems with internal data, the risk of trade secrets and customer information leakage increases further. In addition, corporate-exclusive 5G private networks, such as Ium 5G, are also expected to become hacking targets. As Ium 5G networks spread across various industries such as manufacturing, automotive, and shipbuilding, the possibility of cyberattacks targeting security vulnerabilities is increasing.

Legal Issues and Corporate Preparedness Related to Cybercrime

The Information and Communications Network Act of Korea (Act on Promotion of Information and Communication Network Utilization and Protection of Information) provides the legal basis for responding to these cybercrimes. The Act strictly regulates hacking, personal information leakage, and illegal information distribution, and imposes severe penalties for violations. Also, companies have an obligation to protect customer personal information, and violations can result in fines and criminal prosecution.

Therefore, especially companies utilizing related technologies such as IoT and generative AI should systematically prepare for security checks and enhancements, legal compliance, and security breach response strategies. It is recommended to conduct security checks before introducing IoT and AI systems and to establish internal security policies for data protection and compliance. Also, it is important to cooperate with IT legal professionals with extensive experience to minimize legal damages and liabilities in the event of a security breach.

1. Proactive Security Checks and Enhancements: Security checks and continuous security updates should be performed before introducing IoT and AI systems.

2. Data Protection and Compliance: Companies must comply with related laws and regulations such as the Information and Communications Network Act and the Personal Information Protection Act, and systematically establish internal security policies.

3. Legal Risk Preparedness and Response Strategy: Companies should establish proactive legal response strategies to prepare for unexpected security breaches and cooperate with cybersecurity attorneys to prepare for rapid responses if necessary.

   
   

Legal Response Measures When Cybercrime Damages Occur

When a company suffers cybercrime damages, a prompt and effective legal response is required. The main response measures are as follows:

• Criminal Complaint: If illegal acts such as hacking and trade secret leakage are confirmed, a criminal complaint can be filed with the police or the prosecutor's office.
• Claim for Damages: If a company suffers property damage as a result of illegal acts, a civil lawsuit can be filed against the perpetrator.
• Reporting to Government Agencies and Cooperation: If a problem such as personal information leakage occurs, the company can report to the Personal Information Protection Committee and KISA to request administrative measures.

The advancement of IoT and generative AI technologies brings opportunities as well as new security and legal risks to companies. As threats such as cybercrimes utilizing AI, hacking utilizing IoT devices, and attacks on corporate 5G networks are increasing, companies must proactively prepare security enhancements and legal response strategies.

Law firm Veat has extensive experience in IT and cybersecurity legal fields and provides customized legal services to help companies safely and effectively utilize IoT and AI technologies. We provide comprehensive legal support from corporate security checks to legal risk management, compliance, and response strategy development. In particular, Law firm Veat’s IT and personal information protection specialized attorneys offer professional corporate security and legal responses based on extensive practical experience, such as former L company IT research engineers and N company developers.

Thank you.

Law firm Veat