“The SEC’s new cybersecurity disclosure rules decoded: what they mean for investors” by Jonathan D. Uslaner and Jimmy Brunetto Published in Reuters

June 4, 2024

In this Reuters article, “The SEC’s new cybersecurity disclosure rules decoded: what they mean for investors,” BLB&G partner Jon Uslaner and associate Jimmy Brunetto discuss the SEC’s latest cybersecurity disclosure rules amid the rise of cyberattacks against public companies and U.S. government agencies.

In July 2023, IBM published its annual “Cost of a Data Breach Report,” revealing that 553 organizations experienced data breaches from March 2022 to March 2023, costing an average of $4.45 million. Additionally, in January 2024, the U.S. Securities and Exchange Commission (SEC) announced a hack of its social media account on X (formerly Twitter). Prior to this incident, the Biden Administration had released a March 2023 report demanding increased cyber regulations and better public disclosures of cybersecurity threats.

The authors break down the SEC’s new cybersecurity disclosure rules, outlining compliance requirements and their implications for companies and investors. They emphasize the importance of understanding these rules, stating, “Investors must remain vigilant in their assessment of the cybersecurity risks faced by public companies and the levels of disclosure companies provide pursuant to the SEC’s new rules.”

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