Inkit | February Insights: The Rules are Changing. No More Do-Overs

The Hidden World of Data Breach Cover-Ups

The Delete Act Is Reshaping Data Privacy

AI is moving fast—so are the risks. January’s DeepSeek breach, data broker crackdowns, and shifting compliance standards prove it.

For government agencies, this means locking down AI-driven workflows, strengthening compliance, and fortifying mission-critical data against rising threats. For enterprises, privacy laws are tightening, Zero Trust mandates are expanding, and document security expectations are shifting.

This month, we break down the biggest security and compliance shifts of 2025:

AI security isn’t a future problem—it’s a business-critical issue now.
Data broker laws are expanding—are you at risk?
The U.S. government is going paperless—how long before businesses must follow?
E-signatures are under scrutiny—compliance is tightening.

The pace of change is accelerating. If your security playbook isn’t evolving, it’s already outdated.

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AI Risks Are No Longer Hypothetical

Source: csoonline

DeepSeek’s data exposure raises alarms about AI security vulnerabilities.

DeepSeek’s AI security failure exposed over 1M sensitive records. Their unprotected database leaked chat histories, API secrets, and admin credentials—proving AI-driven operations are just as vulnerable to basic security failures.

AI isn’t just a competitive advantage—it’s a risk multiplier of misconfigurations, weak access controls, and poor governance if unchecked. DeepSeek isn’t an outlier—it’s a warning.

AI security is about more than algorithms. Treat AI vendors like critical infrastructure: demand transparency, enforce security, and assume nothing.

The Hidden World of Data Breach Cover-Ups

Source: wired

Who really knows when your data has been breached? Not you.

A recent investigation exposed how law firms are using legal loopholes to suppress breach notifications. In over 300 school cyberattacks analyzed, legal teams prioritized liability protection over transparency—leaving victims in the dark.

And it’s not just schools. Across industries, companies are dodging disclosure laws, exploiting legal privileges, and burying breaches.

Security isn’t a PR issue—it’s a risk issue. If your organization suffers a breach, own it, disclose it, fix it. Anything less damages trust and strengthens attackers.

The Delete Act Is Reshaping Data Privacy

Source: adexchanger

Think you’re not a data broker? Regulators might disagree.

California’s Delete Act is tightening privacy laws, and many companies don’t realize they now qualify as data brokers. Even if you don’t sell consumer data, if you use third-party data for analytics or targeting, you could be subject to $200-per-day fines for noncompliance.

‍And it’s not just California—Texas, Oregon, and Vermont are enforcing similar laws.

Compliance isn’t optional. Audit your data practices now. Don’t assume you’re exempt—regulators won’t.

“Inkit’s steadfast prioritization on data security, providing the best possible variable costs, and having a rockstar support team has made this partnership exceptional.”

— Aaron Williams, Head of Asana for Nonprofits

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Government’s Paperless Push Is Here

Source: fedtechmagazine

Government agencies go digital—are businesses next?

The Government Publishing Office (GPO), Library of Congress (LOC), and National Archives (NARA) are accelerating paperless records management. Cloud-based storage, AI-driven processing, and strict metadata requirements are becoming the standard.

For private-sector companies, this shift isn’t just about government policy—it’s about future compliance expectations. If your business still relies on paper-based workflows, it’s time to modernize.

Government agencies are making digital compliance mandatory. Get ahead of the shift now—before it’s forced on you.

“The assurance of data security is mission-critical to our everyday operations. The Inkit platform has provided us the single, all-inclusive solution we needed to maintain control and privacy over our information.”

“Using Inkit’s on-demand document generation and retention policies has proven to be highly successful for us. We’re using the API to generate application and adverse action notices. The platform provides us development and cost savings over implementing a custom solution.”

— Ed Cody, COO at Vital Card

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“Inkit has enabled us to streamline our back office and collections, reducing program spend by up to 94%, while maintaining the flexibility to integrate with our existing apps and tools.”

— Jordan Hill, Product Manager at Bird Global

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February 2025 Cybersecurity Breaches & Impacts

20M OpenAI access codes & 30K OmniGPT credentials stolen, raising AI security concerns.
Microsoft Patch Tuesday fixes 67 vulnerabilities, including 4 zero-days & 3 critical flaws.
Medusind Inc. breach exposes 360K patients’ personal, health, and billing data.
HPE breach claims surface, IntelBroker allegedly steals source code, API access, and user data.
TalkTalk breach puts 18.8M customer records up for sale, exposing PINs and contact info.
Elon Musk & DOGE lawsuit alleges unauthorized access to Treasury records, exposing millions of SSNs & bank details.

The Privacy Crackdown Has Begun

Source: technologyreview

Regulators crack down on data brokers—what it means for your privacy.

The FTC and CFPB are aggressively enforcing consumer data protections, targeting businesses that collect, analyze, or share consumer data—even if they don’t consider themselves "data brokers."

Regulators are expanding their reach. Audit your data practices now—privacy laws are tightening, and noncompliance will cost you.

Digital Signatures Under Fire

Source: ohioattorneygeneral

New Ohio law strengthens protections against unauthorized signature use.

E-signatures have transformed business workflows, but now face new legal scrutiny. Ohio’s latest law enforces strict consent requirements, usage disclosures, and security mandates—and other states are expected to follow.

For industries that rely on digital approvals—finance, legal, and government contracting—compliance expectations are shifting fast.

E-signature laws are evolving. Businesses need to audit workflows, secure documents, and align with emerging legal standards.

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