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The Securities and Exchange Commission (SEC) has been vigilant in ensuring transparency and fairness in the capital markets. In July 2023, the SEC made it clear: a cybersecurity breach is a material breach, and companies must disclose it promptly. Cybersecurity breaches are a pervasive threat that can impact any business relying on digital infrastructure. Immediate costs include stopping the attack, loss of customers and revenue, and the looming specter of lawsuits. Moreover, the erosion of customer trust can lead to additional expenses in the form of hiring lawyers and experts. In 2021, Pearson PLC paid a $1 million settlement for misleading investors following a data breach. And, First American Financial Corp faced a $500,000 fine for its lack of disclosure controls after exposing 800 million image files. The recent SEC regulation underscores the importance of promptly disclosing cybersecurity incidents. If a company experiences a cyber breach, it must report it within four working days by filing a Form 8-K. Additionally, companies must provide disclosures related to their cybersecurity risk management and strategy in their Form 10-K filings. So, there is a great need for a data-centric approach. To mitigate the risks of a cybersecurity breach, companies need to shift their perspective on data protection. As cyber threats evolve, relying solely on network security is no longer sufficient. Data encryption is the linchpin of data-centric security, rendering stolen data useless to malicious actors. Do SEC Regulations Affect Your Company? If your business is public or part of a supply chain, SEC regulations have an impact. In today's digital age, where data is exchanged, stored, and transmitted in various forms, data protection is paramount. Consider common use cases where data protection is critical, from email exchanges to instant messaging. SEC regulations have a broad reach, affecting everyone involved. As companies shift to cloud-based services, they entrust their sensitive data to third-party providers. Recent attacks on cloud services have exposed vulnerabilities. It's imperative for companies, especially those subject to SEC regulations, to take a proactive approach to secure their data, even when stored with third parties. Galaxkey CAN help. Contact us today to safeguard your data and protect your company's future. Let's discuss how Galaxkey can help you comply with SEC regulations. Email sales@galaxkey.com

#DigiKnow that non-compliance can cost businesses twice as much as maintaining compliance? Moreover, failing to meet IT security regulations can lead to a poor reputation, operational delays, staffing challenges, and ongoing security threats. Read more about it in our blog > https://bit.ly/46L6E3j

#DataSecurity is much more than a technical requirement; it's a business imperative. A well-implemented data security strategy can protect customer trust, preserve your reputation, and safeguard intellectual property, all while averting potential financial losses. How comprehensive is your data security strategy in addressing these key aspects? Read some of these insights and share your approaches below. #DataProtection #CybersecurityAwarenessMonth

More than 50% of sensitive data assets are accessed by 5-10 applications. 👀 On Dig Security (acquired by Palo Alto Networks)'s blog you can discover how application data usage can introduce additional compliance challenges ➡️ https://lnkd.in/gb62ARHM #DDR #DSPM #DataSecurity

"Implementing end-to-end encryption can range from moderately difficult to very challenging, depending on the organization's size, existing infrastructure, and the types of data being encrypted," Jones says. "It requires careful planning, investment in the right tools and technologies, and often a cultural shift in how data security is perceived and managed." Often organization can run into problems related to key management, which is a major issue because losing keys can mean losing access to data permanently. Organizations also need to consider potential performance impacts related to encryption and ensure compatibility with existing systems and formats, Jones says.

Understanding the SEC’s New Cybersecurity Disclosure Rules: A Guide to Materiality and Legal Risk Recent changes by the U.S. Securities and Exchange Commission (SEC) will require organizations to follow new disclosure rules around cybersecurity incidents starting December 18, 2023. These changes have important effects on how organizations assess the importance of cybersecurity incidents. The Complexity of Materiality The SEC states that an incident is "material" if it would be considered essential by a reasonable shareholder for making investment decisions or if it significantly changes the total mix of information available. This definition isn't new for public companies but applying it to cybersecurity makes it more complex. Multiple Facets of Materiality Traditionally, incident responders look at the quality and quantity of accessed data, operational disruption, and significant risk to the company’s survival when determining the importance of an incident. The SEC believes that companies should also evaluate materiality from the perspective of a reasonable investor. Legal Counsel and Frontline Coordination Legal teams and frontline incident responders must efficiently coordinate. They should work with each other to create a unified response to incidents. The case of First American Financial Corporation serves as an important example of what can go wrong without effective disclosure controls and procedures. Practical Tips: 1. Be Clear about Security Protocols: Make sure public statements about your security controls match the reality. 2. Update Internal Processes: Align your internal escalation procedures with what counts as material. 3. Review Business Model and Security: Scrutinize how much your business model depends on strong cybersecurity. 4. Involve Legal Teams from the Start: Legal teams should evaluate the importance of an incident early, rather than leaving it to technical staff alone. Preparing for the SEC’s new rules means understanding and implementing the concept of "materiality" in the cybersecurity context. Failing to do this exposes organizations to legal risks and enforcement actions. #cybersecurity #regulation #SEC

🛡️ #DataSecurity is much more than a technical requirement; it's a business imperative. A well-implemented data security strategy can protect customer trust, preserve your reputation, and safeguard intellectual property, all while averting potential financial losses. How comprehensive is your data security strategy in addressing these key aspects? Read some of these insights and share your approaches below. #DataProtection #CybersecurityAwarenessMonth

🛡️ #DataSecurity is much more than a technical requirement; it's a business imperative. A well-implemented data security strategy can protect customer trust, preserve your reputation, and safeguard intellectual property, all while averting potential financial losses. How comprehensive is your data security strategy in addressing these key aspects? Read some of these insights and share your approaches below. #DataProtection #CybersecurityAwarenessMonth

🛡️ #DataSecurity is much more than a technical requirement; it's a business imperative. A well-implemented data security strategy can protect customer trust, preserve your reputation, and safeguard intellectual property, all while averting potential financial losses. How comprehensive is your data security strategy in addressing these key aspects? Read some of these insights and share your approaches below. #DataProtection #CybersecurityAwarenessMonth

🛡️ #DataSecurity is much more than a technical requirement; it's a business imperative. A well-implemented data security strategy can protect customer trust, preserve your reputation, and safeguard intellectual property, all while averting potential financial losses. How comprehensive is your data security strategy in addressing these key aspects? Read some of these insights and share your approaches below. #DataProtection #CybersecurityAwarenessMonth