SEC's new data breach disclosure rules take effect, here's what you need to know

https://techcrunch.com/2023/12/18/new-sec-data-breach-disclosure-rules/

by mikece • 3 years ago

84 17 3 years ago

vaxman2• 3 years ago

Now we need FTC to step up and impose this on privately held companies that hold large numbers of consumer profiles, regardless of annual revenues. Several states already codify such disclosure requirements, but the (education and) enforcement of those rules only happens if the breached data becomes public anyway. (Nowadays, what is eventually published for sale by hackers may not even be able to be connected back to all of the specific data breaches involved in producing it.)

dumbfounder2• 3 years ago

I anticipate managers dissuading people from investigating possible breaches. If you don’t know there is a breach you don’t have to report it.

elashri• 3 years ago

Then you need to make it illegal to know of a breach and don't report it. This might give employees incentive to report their management illegal act of hiding a potential breach by obstructing internal investigation. Or better make the consequences of failing to secure system very painful and may put the company out of business. Not that 12 month of free credit monitoring for affected users. This will encourage companies to secure the data or better to not store what is not absolutely unnecessary because it is a huge liability. But of course governments like to access these data themselves from time to time.

cush• 3 years ago

How would that go down?

"I believe that someone currently has access to our customer database"

- "It's probably nothing. Carry on with your regular work. Nothing to see here."

Luckily for consumers, the do nothing approach to this problem is more costly than disclosing.

vaxman2• 3 years ago

Because the hackers know, they may also threaten to report their victim’s tort (arising from any failure of their victim to self-report the data breach):

https://techcrunch.com/2023/12/18/why-extortion-is-the-new-r...

tekla• 3 years ago

Funny, I see developers refusing to investigate breaches because "its not their job"

TedDoesntTalk• 3 years ago

solarwinds123

egberts12• 3 years ago

Material threat to be identified within 96 hours?

How would receiving an encrypted email detailing a vulnerability of your flagship product fit with the 96 hours, given that 90 days are often needed to fix said vulnerability (s) before informing the public?

In short, wouldn't that company's vulnerability make for excellent zero-days while they are trying to repair and retest the problematic product?

pketh• 3 years ago

my interpretation of this is that the existence/disclosure of a vulnerability is entirely distinct from a data breach event (the SEC is mainly concerned with the latter)

egberts12• 3 years ago

Ummm, ChatGPT is a vulnerability or a data breech if new stock tips can be had this way?

cyanydeez• 3 years ago

slow down there fellow: >Under the incoming cybersecurity disclosure requirements, first approved by the SEC in July, organizations must report cybersecurity incidents, such as data breaches, to the SEC in a specific line item on a Form 8-K report within four business days

first line. It's going to a speicif org, not russian hackers in siberia.

I agree, that better be one damn secure batphone they're using.

malshe• 3 years ago

8-K filings are public filings. You can see them on SEC's EDGAR database

hbcondo7142• 3 years ago

Looking forward to how these disclosures will be written when we found out about them from the SEC's PR in July. As a shameless plug, you can subscribe & use this web page to view and receive notifications when new cybersecurity incidents / data breach disclosures are made public by the SEC:

https://last10k.com/stock-screeners/cybersecurity

hbcondo7142• 3 years ago

V.F. Corporation (VFC), an apparel company, was the first company to file a cybersecurity incident under this new rule. The period of the report shows Friday, Dec 15 so it appears they submitted it to the SEC after-hours on Friday and the SEC accepted/published it this Monday morning, Dec 18 but the company became aware of the incident on Monday, Dec 13. Their stock price is down almost 8% today.

Sources:

https://last10k.com/sec-filings/vfc/0000950123-23-011228.htm

https://www.sec.gov/Archives/edgar/data/103379/0000950123230...

https://www.reuters.com/business/retail-consumer/vans-owner-...

Mesmoria• 3 years ago

Doesn't this bring the US in line with the EU, Australia, and I would assume a range of other countries ?

zingababba• 3 years ago

CISOs seething. Going to be very interesting what the Solarwinds SEC case outcome is, going to set a massive precedent.

SEC's new data breach disclosure rules take effect, here's what you need to know

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