A US federal judge has ruled that the 29 million Facebook users affected by the September 2018 data breach may not seek damages as a remedy, but can only pursue the enforcement of better security practices at Facebook, according to a report by Reuters. Judge Alsup of the US District Court stated that Facebook’s repetitive losses of users’ privacy indicated a long-term need for supervision, which comes in addition to prior judgment which indicated that Facebook’s views about user’s privacy expectations were “so wrong”.Read More
By Tyler Kirk
In the US, the Securities and Exchange Commission has encouraged its regulated entities to self-report. If entities do not self-report, there is the very real possibility that a whistleblower may disclose a cybersecurity incident to the Commission. Significantly, the SEC has indicated that it would take a more adversarial position against an entity that does not self-report.
When self-reporting cybersecurity incidents to the SEC, it is important to approach the Commission with a well thought out plan for responding to the incident. Moreover, a remediation strategy should be a part of every entity’s cybersecurity policies and procedures.
After a cybersecurity incident, SEC regulated entities, such as investment companies and their boards, should move quickly to establish the scope of the incident, decide whether to self-report to the SEC, and begin the remediation process. According to the Commission, under some circumstances, the SEC has tools available to assist with remediation.
Importantly, self-reporting cybersecurity incidents to the SEC could benefit an investment company and its board by leading to a reduced penalty in the event an enforcement action is brought on the basis of the incident.