🚫 USA🇺🇸: The American Bankers Association (ABA) opposes mandatory disclosure of cyberattacks

🚫 USA🇺🇸: The American Bankers Association (ABA) opposes mandatory disclosure of cyberattacks

The American Bankers Association (ABA), along with other financial industry groups, has asked the Securities and Exchange Commission (SEC) to revoke the rule requiring the disclosure of cyber incidents. They argue that this obligation increases the risk for affected companies.

👕 According to the regulation adopted in 2023, companies that suffer a cyberattack must publicly report the data breach within 4 business days of detecting the incident. The only exception is if disclosure poses a threat to national or public security.

👕 Financial organizations argue that the measure presents two major problems:

⛔️ Reputational damage, which can severely impact a company’s public image.

⛔️ Advantage for attackers: if hackers receive near-instant confirmation that the attack was successful, it becomes harder to contain the breach and the damage may worsen.

⛔️ Additionally, there have been direct extortion cases by hackers. Some groups threaten to report the companies themselves if they fail to comply with regulatory protocols. A notable case happened in 2023, when the group AlphVfiled a complaint against MeridianLink for allegedly failing to disclose a breach under the current regulation.

👕 The formal request, submitted under Rule 192 of the “SEC Rules of Practice”, was signed by the ABA, the Bank Policy Institute (BPI), the Securities Industry and Financial Markets Association (SIFMA), the Independent Community Bankers of America (ICBA), and the Institute of International Bankers (IIB). Together, these entities represent most of the U.S. financial system.
A response from the SEC is expected in the coming weeks.
#news #USA #scams

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