SEC to take strict actions on banks falling prey to ransomware attacks

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US Securities and Exchange Commission (SEC) started a Cyber Unit in 2017 to track down any cyber related misconduct among companies, including market manipulation, threat to financial infrastructure and illegal access to non-public information.

Now the financial authority of North America has taken a decision to strictly punish financial institutions and banks that cannot protect themselves from ransomware attacks and data breaches.

Thus, according to SEC’s newly implemented enforcement actions, heavy penalties will be levied against companies that cannot protect customers’ personally identifiable information.

Significantly, the victimized company not only has to go through trauma injected by the threats actors, but will also need to face harsh actions by the financial authority for engaging in cyber related misconduct.

In other news related to SEC, reports are in that the financial authority of United States has opened a detailed inquiry into the Wall Street Bank practices that help keep track of employees’ digital communication.

Earlier, all banks need to mandatorily document their employees’ work related communication, such as text messages, emails and telephone conversations that take place during work hours.

However, until May this year, the above stated practice was limited to devices that were owned by employees to fulfill their day-to-day work needs. Now, the new rule will allow companies to keep up a track on communication related information that takes place on personal devices of employees. And will also be allowed to hold a deep probe on suspects if necessary.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security