Executives Face Jail, Significant Fines if Cybersecurity Incidents are not Handled Properly

Jail Cells

According to news reports, the former CIO of Equifax was recently sentenced to 4 months in prison and ordered to pay over $170,000 in fines and restitution for selling shares in Equifax before the now infamous 2017 breach was reported to the public. He is the second Equifax executive to plead guilty to insider trading related to that data breach.

As we previously discussed, in 2018 the SEC issued guidance on how companies should address reporting cybersecurity incidents to their shareholders, and they are aggressively enforcing this guidance. This creates additional risks that are not always covered by traditional Director and Officer insurance, including jail.

Is your company’s executive cybersecurity education program fully informing your executives about the risks they face? Does the company’s incident response plan include measures to address these risks? Unlike other consultants who focus only on the technical aspects of cybersecurity, Fathom Cyber uses a holistic approach that addresses the technical, business, and legal issues so your executives are better prepared and better protected. In short, we make cybersecurity make sense.

Contact Fathom Cyber to find out how we can help your company build a more comprehensive cybersecurity program.