The Double-Edged Sword of the SEC’s New Cybersecurity Disclosure Rules
Publicly traded companies are now required by the U.S. Securities and Exchange Commission (SEC) to report any significant cybersecurity breaches within four business days through Form 8-K filings. This new regulation establishes a standardized approach to cybersecurity disclosures that promotes transparency and builds investor confidence. Despite the well-intentioned nature of these rules, some SEC and wider community members have raised concerns that these disclosures could assist cybercriminals.