China Regulatory Enforcement Quarterly – May 2016

The PRC regulatory landscape remains a hotbed of activity in Q1 2016 with government regulators tackling major scandals in the financial and healthcare sectors. While government regulators and corporations continue to focus on traditional corruption investigations, major cyber/data security breaches and social engineering frauds have also come to focus. These frauds are cross-border in nature, and those facilitating the frauds are spread across many countries around the world, which makes it extremely difficult to recover stolen assets and data. Moving forward into 2016, the following trends will influence the regulatory environment in China and the rest of Asia:

Corporate data increasingly vulnerable to breaches/attacks

Increased corporate connectivity with the shift towards online data storage and cloud-based services has increased the potential points of vulnerability for data theft and breaches. Work-related communications and data transfers involving confidential company and customer information are becoming increasingly vulnerable to attacks. Reliance on smart connected devices is also creating numerous points of vulnerability for intelligence gathering and/or fraudulent activity. Increased connectivity and big data will present a new dimension of risks for multinational companies.

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Copyright © 2016 DLA Piper. All rights reserved. | MAY16 | 3084799

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