The Securities and Exchange Commission (SEC) charged
four companies for alleged misleading information to investors regarding cybersecurity
incidents.
Alleged Inadequate Cyber Disclosures
The SEC charged Unisys Corp., Avaya Holdings Corp., Check Point Software Technologies Ltd, and Mimecast Limited with misleading investors regarding cybersecurity incidents. According to the SEC, the companies downplayed
the seriousness of cyber intrusions related to one of the most high-profile
breaches in recent years.
The regulator mentioned that the four companies faced
cyberattacks but failed to disclose the full scope of the incidents, leaving
shareholders in the dark. SEC fined the companies $6 million.
Commenting on the enforcement, Sanjay Wadhwa, the Acting Director of the SEC’s Division of Enforcement, said: “As today’s enforcement actions reflect, while public companies may become targets of cyberattacks, it is incumbent upon them not to further victimize their shareholders or other
members of the investing public by providing misleading disclosures about the
cybersecurity incidents they have encountered.”
“Here, the SEC’s orders find that these companies
provided misleading disclosures about the incidents at issue, leaving investors
in the dark about the true scope of the incidents.”
The companies involved did not admit to or deny the
charges but agreed to cooperate with the SEC by improving their cybersecurity
controls. Each firm is now required to cease any future violations of the
charged provisions.
The investigation into these firms was led by the
SEC’s Crypto Assets and Cyber Unit, further emphasizing the agency’s commitment
to holding companies accountable for cybersecurity-related disclosure failures.
Cybersecurity and Fintech
Meanwhile, a recent report mentioned that
cybersecurity is the most notable factor in fintech development globally,
accounting for 63% of its influence. The findings are based on a study by
UnaFinancial. The report noted that the fintech landscape is
flourishing as countries strengthen their digital defenses. It noted that security is both a technical requirement and an important financial
innovation.
Interestingly, the global fintech sector is defined by
its reliance on cybersecurity, with the new study demonstrating a strong
correlation between cybersecurity market size and fintech expansion.
UnaFinancial noted that the correlation coefficients
between cybersecurity and fintech expansion in Europe and America were as high
as 0.8714 and 0.9762, respectively. Accordingly, it suggested that investments
in digital security infrastructure support fintech adoption.
This article was written by Jared Kirui at www.financemagnates.com.
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