Cybersecurity Whistleblowers Are Growing Corporate Challenge

SEC guidance gives tipsters reason to believe that by flagging a cybersecurity issue, they would also be highlighting a securities violation.

Signals from the U.S. Securities and Exchange Commission over how seriously it takes cybersecurity, combined with a Supreme Court ruling on whistleblower protections, are putting pressure on companies to be more careful about how they deal with potential tipsters, lawyers say.

The securities regulator issued guidance in February on how companies should handle cybersecurity issues. In April it fined Altaba Inc., formerly Yahoo Inc., $35 million over its handling of a 2014 hack, marking the first time the SEC penalized the victim of

... read more at: https://blogs.wsj.com/riskandcompliance/2018/05/15/cybersecurity-whistleblowers-are-growing-corporate-challenge/

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