SEC forces companies to warn you about hacks in four days, but not it’s not about your safety

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The SEC decided that public companies subject to data breaches should disclose the hacks within four days - here’s what you need to know.

might have stolen your personal data during a new attack means early mitigation. You could start changing passwords and monitor other sensitive accounts immediately after a data breach happens. Well, within four days of the attack.

SEC Chair Gary Gensler explained that the new rule would benefit “investors, companies, and the markets connecting them” in a statement part of theWhether a company loses a factory in a fire — or millions of files in a cybersecurity incident — it may be material to investors. Currently, many public companies provide cybersecurity disclosure to investors.

However, the sooner the data breach disclosures come in, the faster everyone can act. This could reduce the fallout and allow the stock to recover faster. I’m simply speculating here, however. But the new SEC data breach disclosure rule might prevent some companies from informing you about a massive hackThere is one exception to the new four-day rule, however. Should a data breach pose a risk to national security, the disclosure will be delayed.

 

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