[ISN] Hacked companies face SEC scrutiny over disclosure, controls

http://www.sfgate.com/business/article/Hacked-companies-face-SEC-scrutiny-over-5596541.php By Dave Michaels SFGate.com July 2, 2014 The Securities and Exchange Commission has opened investigations of a number of companies, examining whether they properly handled and disclosed a growing number of cyberattacks. The investigations are focused on whether the companies adequately guarded data and informed investors about the impact of breaches, according to two people familiar with the matter who asked not to be named because the probes aren’t public. Target Corp., the victim of a breach last year that allowed hackers to access payment data for 40 million of its customers’ debit and credit cards, is one of the companies facing SEC scrutiny, according to company filings. The prospect of enforcement actions against companies that have been victims of cyberattacks marks a new front in the agency’s efforts to combat the rising threat hackers pose to public companies, brokerages and financial markets. Previously, the SEC had focused on guiding public companies on how to disclose those risks and making sure financial companies have adequate defenses against hackers. […]