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Impact of the New SEC Cybersecurity Regulations on Business Risk and Information Security Practices

New SEC Cybersecurity Regulations: A Must-Read for Public Companies

The SEC has introduced stricter cybersecurity disclosure requirements for public companies. This article breaks down the key impacts, including increased accountability, mandatory reporting, and the need for enhanced cybersecurity practices. Don’t miss out on this essential information. #cybersecurity #SEC #publiccompanies #regulation

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Although this article is UC Centric one can learn some valuable lessons from this and also prepare for the inevitable proliferation of these types of regulations in other jurisdictions.

The US Securities and Exchange Commission (SEC) recently introduced new regulations concerning cybersecurity disclosures for public companies. These regulations are designed to provide investors with more comprehensive, timely, and comparable information about cybersecurity risks and incidents, ultimately impacting both business risk and information security practices. This stems from previous incidents where proper disclosure of risk was not done and led investors to believe that their investment was within their risk tolerance.

This regulation has an immediate impact on the overall Business Risk.

Through this regulation there will be Increased Accountability and Scrutiny as the regulations place a heightened emphasis on accountability for cybersecurity risk management. Public companies will face greater scrutiny from investors and regulatory bodies, who will now have access to more detailed and standardised information about their cybersecurity postures.

Then there is the mandatory four-business-day disclosure window for material cybersecurity incidents increases the potential for Reputational Damage and Financial Losses. Companies will have limited time to respond to and remediate incidents before disclosing them publicly, potentially impacting investor confidence and stock prices.

The detailed disclosure requirements, particularly regarding the material impact of cybersecurity incidents, could expose companies to increased Litigation Risks from investors alleging inadequate cybersecurity practices or failure to disclose material information in a timely manner.

The Information Security Practices are not exempt from the impact this regulation has.

The regulations necessitate a more Proactive and Comprehensive approach to Cybersecurity Risk management. Companies will need to establish robust processes for identifying, assessing, and mitigating cybersecurity threats to comply with the annual disclosure requirements regarding their cybersecurity risk management, strategy, and governance.

The four-business-day disclosure deadline for material cybersecurity incidents will force companies to streamline and Enhance their Incident Response Capabilities. They will need to invest in tools and resources that enable rapid detection, containment, and remediation of incidents to minimise their impact and meet the reporting deadline.

The regulations encourage early Collaboration with Law Enforcement and Government Agencies, such as the FBI and CISA, in the event of a cybersecurity incident. This collaboration can provide companies with valuable insights and assistance in responding to and recovering from incidents, potentially mitigating their impact.

Then there is the impact to the Board and Management Involvement: The SEC regulations emphasise the importance of board and management oversight of cybersecurity risks. The rules require disclosures regarding the board’s role in overseeing cybersecurity risks and management’s role in assessing and managing these risks. This focus will likely lead to greater involvement of boards and senior management in shaping cybersecurity strategy and resource allocation.

To surmise, the new SEC regulations on cybersecurity disclosures represent a significant development for public companies. By increasing transparency and accountability, these regulations aim to empower investors with crucial information about cybersecurity risks. However, these regulations also introduce new challenges for companies, requiring them to adopt more proactive cybersecurity risk management practices, enhance their incident response capabilities, and foster closer collaboration with relevant government agencies.

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CISO Blog

The Scourge of Vulnerabilities and Our Ever-Vigilant Duty

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Hold onto your hats, folks! We’re diving headfirst into the murky waters of cyber vulnerabilities—a relentless scourge that’s as persistent as the Monday morning blues. In a world where everything and everyone is connected, staying vigilant isn’t just a best practice; it’s a downright necessity.

Let’s face it: vulnerabilities in our digital systems are the gifts that keep on giving—to cybercriminals, that is. Nobody wants to hear that their latest software update shipped with a gaping hole just begging to be exploited, yet here we are, playing an eternal game of cybersecurity whack-a-mole.

The problem is simple: as technology evolves, so do the avenues for attack. Every new feature, line of code, or interconnected device is a potential weak point waiting to be discovered. Don’t get me wrong—I love new tech as much as the next person, but security needs to evolve with it, preferably at twice the speed.

Think back to the headlines: massive data breaches, ransomware attacks, and even critical infrastructure takedowns. These aren’t just abstract incidents happening elsewhere; they’re reality checks demanding our constant attention. And with the Internet of Things (IoT) ushering in a tech revolution, we’re adding new devices faster than ever, increasing our attack surface exponentially. Who knew your smart toaster could be the weak link in your home network’s defense?

So, what’s the takeaway here? Vigilance, cloud partners, is key. Ensuring the security of our systems isn’t a one-time affair—it requires ongoing diligence and a proactive approach. Here are some golden nuggets to keep in mind:

  1. Patch, Patch, Patch: It sounds like a broken record, but timely updates and patches are your first line of defense against newly discovered vulnerabilities. Outdated software is a cybercriminal’s playground.
  2. Comprehensive Monitoring: Keep tabs on your networks and systems with robust monitoring tools. The sooner you detect an anomaly, the faster you can respond before it snowballs into a crisis.
  3. Security Education: Arm your workforce with knowledge. Regular training sessions, phishing simulations, and awareness campaigns should be part of your innate company culture. The more your people know, the less likely they are to be the unwitting door-opener for an attack.
  4. Zero Trust Approach: Treat every connection as a potential threat. Implement identity verification at every access point and minimize trust zones within your network.
  5. Incident Response Plans: Like a fire drill, everybody should know what to do when the alarm sounds. A well-rehearsed incident response plan can mean the difference between a minor hiccup and a major meltdown.
  6. Community Sharing: The cybersecurity community thrives on collaboration. Sharing intelligence about vulnerabilities and attack vectors can help us bolster defenses collectively. Be part of the conversation.

In this age of rampant connectivity, imperfections are the norm. Vulnerabilities will exist, but our approach to managing them dictates whether we become sitting ducks or remain at the forefront of defense. The threat landscape is ever-changing, but so too is our capacity to adapt, innovate, and strengthen our digital fortresses.

As guardians of the cyber realm, let’s commit to not only recognizing the challenges but rising to meet them head-on. Our vigilance today is an investment in the security of tomorrow. Stay sharp, stay aware, and remember: in cyberspace, complacency is not an option—it’s a liability. So gear up, troubleshooters, and let’s keep our networks safe and sound. Another day, another battle—let’s win it together!

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Troublemaker CISO

Silly Thoughts Lead to Epic Failures: The Cybersecurity Circus of 2025

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Welcome to the wild world of cybersecurity in 2025, where organizations are still finding new ways to trip over the same proverbial rake, all while the mainstream media sensationalizes each breach like it’s the latest blockbuster hit. You’d think by now that companies would realize the door isn’t just wide open; it’s practically got a neon sign flashing “Welcome, Hackers!” with an arrow pointing straight to their data vaults.

Let’s face it: sometimes, a silly thought leads to an epic failure—but sometimes, it’s the absence of thought that gets us into trouble! Just the other day, I stumbled upon a report about Company X getting breached through a poorly coded API. I mean, seriously, folks? It’s like someone threw caution to the wind and thought, “Hey, why not push this disaster to production? What could possibly go wrong?” Sure, hindsight is 20/20, but you can bet that the attackers didn’t find that open API just lying around; they probably spent ages scouting it like some kind of digital treasure hunt.

We defenders know the drill. There are countless layers of security designed to keep the bad guys at bay, but let’s be real: the only guarantees in life are death, taxes, and the fact that there is no such thing as a truly secure system. Period. Now, imagine this scenario: our crafty attacker finds that golden API and begins their meticulous exploration. We throw around terms like “lateral movement” and “privilege escalation,” but really, it’s no different than watching a fox in the henhouse.

Once they’ve sniffed out the jewels—your personal information, trade secrets, whatever they can turn into cash—they start assessing those defenses in what can only be described as a ruthless game of chess. They poke, they prod, and they wait to see how we react—like military strategists plotting their next grand operation, because let’s be honest, they want those spoils without ending up in a shiny orange jumpsuit.

Now, let’s talk about the fallout for the CISO, who likely spent months if not years building up their defense strategy only to find themselves in epic trouble the moment things go south. If the breach is public enough, CISO could find themselves facing the axe, their name dragged through the mud while everyone wonders how they let this happen. But let’s not forget: if the CISO did their job right (and wasn’t slacking off), they probably have documentation proving they rang the alarm bells and recommended necessary investments. Spoiler alert: leadership doesn’t necessarily prioritize funding for these recommendations—those discussions rarely make the headlines.

What happens next? After signing a gag order—oops, I mean a mutual separation agreement—the CISO walks away with a nice little cash settlement while the rest of us roll our eyes. Because here’s the kicker: most breaches are far from “point-and-click” attacks. The more sophisticated ones involve years of planning and a deep understanding of corporate networks, not just random DDOS attacks meant to annoy.

The chilling reality is that information security departments are stretched thinner than ever, expected to be omnipresent and all-knowing while facing tighter budgets, a shrinking workforce, and an ever-evolving tech landscape. It’s a high-wire act that would leave any seasoned performer with their heart in their throat.

So, as we continue to navigate this crazy cybersecurity circus in 2025, remember this: the stakes are high, the threats are real, and while we can acknowledge that silly thoughts lead to epic failures, we must also ensure that we’re all pulling our weight to mitigate the inevitable risks. After all, in the digital realm, ignorance is not bliss—it’s a recipe for disaster. Now, I’d love to chat about this more, but that might just be NSFW!

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Salt Typhoon, an advanced persistent threat

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Sun Tzu made the statement “If you know the enemy and know yourself, you need not fear the result of a hundred battles.”

This highlights the significance of knowledge and strategy in overcoming adversaries. The more you know about your opponent, the better equipped you are to achieve victory.

So, to help you achieve that goal, here is some research on Salt Typhoon.

Salt Typhoon, an advanced persistent threat (APT) group, is a Chinese state-sponsored entity known for its cyber espionage activities and strategic operations aiming to disrupt critical infrastructures. Active since at least 2019, Salt Typhoon, also referred to as Earth Estries, FamousSparrow, GhostEmperor, and UNC2286, has been linked to China’s Ministry of State Security (MSS). This affiliation provides them with significant resources, protection, and strategic direction.

Targets and Objectives

Salt Typhoon primarily targets telecommunications companies, government bodies, and technology firms to gather crucial intelligence and exert strategic influence. Their operations span globally, focusing on regions such as North America, Southeast Asia, and Africa. Key targets include:

  • Telecommunications Providers: Collecting call metadata, intercepting communications, and tracing target movements.
  • Hotels: Tracking locations and movements of significant individuals.
  • Government Agencies: Extracting sensitive information for intelligence purposes.
  • Internet Service Providers (ISPs): Compromising systems managing court-authorized wiretaps.

Additional targets include military institutions, solar energy companies, financial bodies, NGOs, engineering firms, and law practices, reflecting a broad interest in sectors holding strategic or sensitive data.

Tactics, Techniques, and Procedures (TTPs)

Salt Typhoon employs a range of sophisticated tactics to infiltrate and exploit targeted networks:

  • Exploiting Vulnerabilities: Using both known and zero-day vulnerabilities in public-facing systems to gain access. Notable exploits include ProxyLogon (CVE-2021-26855) and various vulnerabilities in VPN configurations.
  • “Living off the Land” Techniques: Employing legitimate tools like PowerShell for stealthy operations, including reconnaissance and data exfiltration.
  • Custom Malware: Deploying bespoke malware such as SparrowDoor, GhostSpider, and the Demodex rootkit to maintain persistence and evade detection.
  • DLL Search-order Hijacking: Used to covertly deploy backdoors like SparrowDoor.
  • Lateral Movement: Utilizing tools such as PsExec and WinRAR for network navigation and data compression; deploying Certutil and BITSAdmin for downloading malicious scripts.
  • Credential Harvesting: Employing tools like Mimikat_ssp and new NinjaCopy variants for credential extraction and file exfiltration.

Notable Campaigns

Salt Typhoon’s operations have included high-impact campaigns:

  • ProxyLogon Exploitation (2021): A swift exploitation of Microsoft Exchange server vulnerabilities following patch releases.
  • Telecom Breaches (2024): Major breaches of US telecom giants like AT&T and Verizon, compromising sensitive communications data.
  • ISP Infiltration: Accessing sensitive ISP data, including information from legal wiretaps.
  • Political Targeting: Attempts to compromise phones of high-profile US political figures, indicating ambitions to influence political processes.

Government and Industry Responses

In response to Salt Typhoon’s aggression, various measures have been implemented:

  • Cyber Unified Coordination Group: A US initiative to mitigate breaches and investigate security lapses.
  • Guidance Issuance: Recommendations for telecom sectors to detect, address vulnerabilities, and enhance cybersecurity.
  • China Telecom Ban: A move to limit possible espionage activities.
  • Enhanced Cybersecurity Measures: Promotion of zero-trust architecture, continuous monitoring, and collaboration between private and public entities.

Security agencies like CISA, NSA, and the FBI have also provided guidelines to strengthen defenses against such threats, emphasizing robust authentication processes and secure communications.

Impact and Implications

Salt Typhoon’s espionage activities have significant ramifications:

  • Threatening Privacy and Security: Theft of communications records undermines privacy and security protocols.
  • Jeopardizing Law Enforcement: Breach of wiretap systems hampers law enforcement capabilities.
  • Critical Infrastructure Exposure: Endangers sectors crucial to national security and economic stability, highlighting vulnerabilities to external threats.
  • Political Process Influence: Attempts to compromise political figures imply a strategic approach to destabilize confidence in cybersecurity governance.

Defense Strategies

Organizations are advised to adopt comprehensive defense strategies to counteract Salt Typhoon:

  • Network Segmentation and Monitoring: Ensuring critical systems are isolated and network activity is consistently monitored.
  • Regular Patch Management: Keeping up-to-date with security patches to close vulnerability exploitation windows.
  • Zero Trust Architecture: Implementing strict access control, communication encryption, and principle of least privilege.
  • Threat Intelligence Utilization: Leveraging threat intelligence data to preemptively guard against known TTPs.
  • Secure by Design Principles: Encouraging integration of security measures throughout software development.

Salt Typhoon represents a significant cyber threat, equipped with sophisticated techniques and far-reaching strategic objectives. Their focus on espionage and infrastructure disruption urges a fortified global cybersecurity stance. Continuous vigilance strengthened cybersecurity protocols, and collaboration between public and private sectors.

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