Companies of all sizes and industries now face a greater challenge in the wake of new Security and Exchange Commission (SEC) rules established this month. In the wake of the 2017 Equifax data breach and other massive hacks, the SEC is now putting a time limit on reporting hacks and data breaches.
The new rules require companies to report any data breach within four days of discovering it, regardless of the severity, and to provide notice to investors and the public in addition to notification of the incident. In addition, companies must maintain records of any potential attack or data leak and provide details on the response and mitigation efforts taken.
The new reporting guidelines could have significant impacts on how companies respond to cyberattacks and data breaches. With only four days to report on any incident, companies must now be more vigilant in identifying any potential attack or data leak and notify the public immediately. It is essential for companies to ensure that security systems, processes, and procedures are in place and followed in order to prevent and detect attacks quickly.
Companies that fail to report a data breach within the mandated timeframe could face significant fines and other penalties. The SEC is also likely to note failure to adhere to its guidelines in future assessments, putting additional pressure on companies to comply.
The new rules represent a shift in expectations for companies that want to protect their customers and comply with the law. Companies must now implement and maintain sophisticated security and compliance programs that are able to detect and respond to potential cyberattacks quickly and efficiently.
Given the growing prevalence of cyberattacks, companies must take the necessary steps to ensure they have the resources and processes in place to protect their data. Companies must use the new SEC rules as motivation to invest in security and compliance programs, or else risk serious repercussions.