On Oct. 11, 2012, the government warned that the United States will be confronted with the possibility of a “cyber-Pearl Harbor” attack by foreign computer hackers who could unleash havoc on the nation’s power grid, transportation system, financial networks and government.[FOOTNOTE 1]
Such harrowing warnings should sound the bell for American businesses to follow the example of the federal government and immediately take precautions from a potentially crippling cyber attack, as well protect themselves from government investigation and prosecution for insufficient protection and disclosure of such attacks. Indeed, the U.S. Department of Justice (DOJ) has recently responded to cyber dangers by providing funding to stop the importing of counterfeit goods, technology thefts and computer hacking attacks against American businesses, while at the same time, the U.S. Securities and Exchange Commission (SEC) has indicated increased review of public company reporting on cyber risks.[FOOTNOTE 2] Accordingly, this article addresses the current state of significant cyber dangers, regulatory efforts to protect intellectual property and cyber systems, and the consideration and implementation of policies and procedures for businesses designed to prevent intrusion and theft as well as create effective responses to cyber attacks and proper disclosure of such risks.
