cyber hacking

SEC Cyber Unit & Task Force

Security.By Melanie Figueroa

With increased attention to how securities laws may apply to digital token sales and the disruptive nature of increased cyber threats to the investor community, the Securities Exchange Commission (“SEC”) last week announced two new initiatives.  The SEC’s press release, found here, outlined the creation of the Cyber Unit (“Unit”) and the Retail Strategy Task Force (“RSTF”).

According to the press release the Unit will focus the Enforcement Division’s substantial cyber-related expertise on targeting cyber-related misconduct, including: (more…)

If You SEC Something, Say Something

Cybersecurity of network of connected devices and personal data securityBy Melanie Figueroa and Susan Kohn Ross

Just about every survey of General Counsels reveals the same #1 culprit of sleepless nights….. a cybersecurity hack. If you run a business in today’s global environment, it is hard to escape the fundamental reality that it is more than likely a matter of when, not if, you will face a cyber threat. And depending on the nature of your business, that threat can have a wide range of implications. If you are a public company, there is an additional issue to consider… what do you have to disclose to your investors and shareholders?

Being prepared for a hack with a comprehensive written information security plan and an equally robust incident response plan is just one component to be considered if you are a public company. You must also have a plan to meet your reporting and disclosure obligations to a variety of governmental bodies. While measuring your response needs in the wake of a hack, and determining if there are state, federal or international laws and regulations that require reporting, you must also pay close attention to possible disclosure obligations in your SEC filings. Specifically, if you have tripped a disclosure to a state attorney general or your company’s customers, then it is possible you may also have a disclosure obligation to your shareholders. (more…)

Tips re Cybersecurity

By Susan Kohn Ross

Los Angeles City Attorney Mike Feuer recently provided tips to aid individuals to protect themselves from identity theft:

  • Shred all documents containing personal, financial or medical information before you throw them out.
  • Be cautious using debit cards. Don’t use at gas pumps or for shopping online.
  • Don’t respond to e-mails, calls or texts seeking sensitive information. Legitimate companies don’t seek customers’ information this way.
  • Create strong passwords that mix letters, numbers and special characters, and use different passwords for different accounts.
  • Lock your mailbox. Stolen mail is a leading cause of identity theft.
  • Don’t keep your license, title and registration in your glove compartment.

(more…)