SEC Fines Four Companies 6 Million for Misleading Cybersecurity Vulnerability Disclosures

Report from Coin World:
The US Securities and Exchange Commission (SEC) has accused four companies of providing misleading information to investors about cybersecurity incidents.
Insufficient network disclosure alleged
The US Securities and Exchange Commission has accused Unisys Corp., Avaya Holdings Corp., Check Point Software Technologies Ltd, and Mimecast Limited of misleading investors regarding cybersecurity incidents. According to the SEC, these companies downplayed the severity of the network intrusions associated with one of the most prominent violations in recent years.
Regulators mentioned that these four companies faced cyberattacks but failed to disclose the full extent of the incidents, leaving shareholders in the dark. The SEC has imposed fines of $6 million on these companies.
The companies involved neither admit nor deny the allegations but have agreed to cooperate with the SEC by improving their network security controls. Each company is now required to cease any future violations of the charged provisions.
The investigation into these companies was led by the SEC’s Division of Enforcement’s Cyber Unit, further emphasizing the agency’s commitment to holding companies accountable for failures in cybersecurity-related disclosures.
Cybersecurity and FinTech
Meanwhile, a recent report has highlighted cybersecurity as the most significant factor in the global development of financial technology, accounting for 63% of its influence. These findings are based on research conducted by UnaFinancial. The report suggests that as countries strengthen their digital defenses, the FinTech sector is flourishing. It notes that security is both a technical requirement and a crucial element of financial innovation.
Interestingly, the global FinTech industry is defined by its reliance on cybersecurity, and this new study indicates a strong correlation between the size of the cybersecurity market and the expansion of FinTech.
UnaFinancial points out that the correlation coefficients between cybersecurity and FinTech expansion are as high as 0.8714 in Europe and 0.9762 in the United States. Therefore, it recommends investing in digital security infrastructure to support the adoption of FinTech.