So, hiding important information from consumers or investors can now be considered fraud under the new “failure to prevent fraud” law in the UK.

← Back to Blog

So, hiding important information from consumers or investors can now be considered fraud under the new “failure to prevent fraud” law in the UK. That comes into force today.

https://lnkd.in/e3fCXxqP

The Securities and Exchange Commission requires covered entities to report cyber incidents to financial markets, so that everyone has the information required to make investment decisions.

Along with the SEC, does the failure to inform markets of a cyber incident that will affect the share price, not an act that could fall under the “failure to prevent fraud” law?

Large companies can be held criminally liable where an “employee, agent, subsidiary or other ‘associated person’” commits a fraud intending to benefit the organisation. In the case of a cyber incident, what are reasonable and sufficient measures to prevent fraud?

Bryan Foss, one suspects, the lawyers will have some fun with this.

@Thaddeus Dziekanowski Brian D. McCarthy Faisal Khan

Veritas GRC

#cybersecurity #cyberriskmanagement

https://lnkd.in/e3FgzUZ6

View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A7368237116457160706