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SEC releases new guidelines for cybersecurity risk disclosures

Published 02/21/2018, 02:45 PM
© Reuters.  SEC releases new guidelines for cybersecurity risk disclosures
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  • The SEC publishes updated guidance on public company disclosures of cybersecurity risks and breaches.
  • Companies should disclose risks that haven’t yet been targeted by hackers.
  • Company executives can’t trade securities when holding nonpublic information regarding an attack.
  • The guidelines follow several notable risks and breaches with varying degrees of disclosures.
  • Uber (Private:UBER) paid off a hacker and failed to disclose a massive data breach promptly. Intel (NASDAQ:INTC) was criticized for lack of transparency related to its Spectre and Meltdown chip flaws.
  • And Equifax (NYSE:EFX) waited months to announce its breach, failed to reveal the depth of the attack, and raised questions when execs dumped shares before the hack was disclosed.
  • Cybersecurity ETFs: HACK, CIBR, HAKK.
  • Previously: Equifax hack likely worse than disclosed - WSJ; shares fall more than 2% (Feb. 9)
  • Previously: AMD +6.7% on Intel chip flaw report (Jan. 3)
  • Previously: Uber reveals 57M-account breach and attempted cover-up (Nov. 21, 2017)
  • Now read: AMD May Have Hit On An Powerful Solution For Crypto Crazed World


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