Data breaches may be nothing new, but they are certainly
evolving into bigger and more notorious infractions. While the data
breaches of yesterday may have involved accidental disclosure or
disgruntled former employees, the data breaches of today are often
carried out by outsiders and highly organized and sophisticated
criminal groups. And hackers aren't just after credit card
information, they are often seeking proprietary information. In
short: trade secrets, watch out.
And it's not just trade secrets that are at risk;
fiduciaries of public companies, or any entity regulated by the
SEC, have a duty to protect the valuable assets of the company and
may need to disclose material events regarding data breaches under
certain circumstances. Victim companies facing the theft of
valuable customer information or company assets in a data breach
may also find themselves in difficult conversations regarding
corporate duties and SEC disclosures.
