SEC Says Companies Should Disclose Cyber Attacks in Filings

The Securities and Exchange Commission said publicly traded companies should disclose to investors the threat and potential impact of cyber attacks that pose a “specific and material” risk.

The SEC made its comments in a letter to Senator Jay Rockefeller, chairman of the Senate Commerce Committee, that was released today. Last month, Rockefeller and four other Democratic senators wrote a letter to SEC Chairman Mary Schapiro urging the agency to issue guidance on disclosure of data-security risk, including “material network breaches,” attacks that may result in the theft of intellectual property or trade secrets.