Craig Newman Authors Op-Ed, “The S.E.C. Dusts Off a Never-Used Cyber Enforcement Tool,” for The New York Times
Patterson Belknap partner Craig A. Newman, chair of our Privacy and Data Security Practice, authored an Op-Ed for The New York Times, about the U.S. Securities and Exchange Commission’s first-ever use of a cybersecurity enforcement tool to punish a financial firm for its “failures” in protecting client information against a cyber-attack.
In “The S.E.C. Dusts Off a Never-Used Cyber Enforcement Tool,” Mr. Newman notes that the agency used its “Identity Theft Red Flags Rule” to censure a financial firm for allowing hackers to access social security numbers, account balances and even details of client investment accounts. “The S.E.C.’s action should set off alarm bells for every financial firm and board of directors under the agency’s watch. Most companies are probably not in compliance with the rule and, given the agency’s increased focus on cybersecurity, they should move quickly to address any issues.”
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