Banks fight to scrap an SEC cyberattack rule

Banks and financial institutions are pushing back against the SEC’s strict cyberattack disclosure rules. Currently, the SEC requires public companies to report 'material' data breaches within four days. Banking groups argue this timeline is too fast. They claim it forces them to go public with details before they have even secured their systems. For a retailer or credit operator, this tension is critical. If your financing partners are distracted by aggressive SEC reporting requirements, it could impact their operational stability during a crisis. At the same time, these banks are asking Congress to preserve a law that allows them to share threat intelligence privately with the government. They want the ability to fix the problem behind closed doors rather than broadcasting vulnerabilities to hackers and the public. You should monitor this closely if you rely on digital lending platforms. A shift in these rules will change how quickly you—and your customers—are notified when a lender's data is compromised. If the banks win, you might see fewer public headlines about breaches, but better behind-the-scenes cooperation to stop fraud before it hits your point-of-sale system.

Source: American Banker — Top News

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