Blog
/
Compliance
/
July 17, 2024

What you need to know about the new SEC Cybersecurity rules

In July 2023, the U.S. Securities and Exchange Commission (SEC) adopted new rules concerning cybersecurity incidents and disclosures. This blog describes the new rules and demonstrates how Darktrace can help organizations achieve compliance with these standards.
Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
Written by
Kendra Gonzalez Duran
Principal Analyst
Default blog image
17
Jul 2024

What is new in 2023 to SEC cybersecurity rules?

Form 8-K Item 1.05: Requiring the timely disclosure of material cybersecurity incidents.

Regulation S-K item 106: requiring registrants’ annual reports on Form 10-K to address cybersecurity risk management, strategy, and governance processes.

Comparable disclosures are required for reporting foreign private issuers on Forms 6-K and 20-F respectively.

What is Form 8-K Item 1.05 SEC cybersecurity rules?

Form 8-K Item 1.05 requires the following to be reported within four business days from when an incident is determined to be “material” (1), unless extensions are granted by the SEC under certain qualifying conditions:

“If the registrant experiences a cybersecurity incident that is determined by the registrant to be material, describe the material aspects of the nature, scope, and timing of the incident, and the material impact or reasonably likely material impact on the registrant, including its financial condition and results of operations.” (2, 3)

How does the SEC define cybersecurity incident?

Cybersecurity incident defined by the SEC means an unauthorized occurrence, or a series of related unauthorized occurrences, on or conducted through a registrant’s information systems that jeopardizes the confidentiality, integrity, or availability of a registrant’s information systems or any information residing therein. (4)

How can Darktrace assist in the process of disclosing incidents to the SEC?

Accelerate reporting

Darktrace’s Cyber AI Analyst generates automated reports that synthesize discrete data points potentially indicative of cybersecurity threats, forming reports that provide an overview of the evolution and impact of a threat.

Thus, when a potential threat is identified by Darktrace, AI Analyst can quickly compile information that organizations might include in their disclosure of an occurrence they determined to be material, including the following: incident timelines, incident events, incident summary, related model breaches, investigation process (i.e., how Darktrace’s AI conducted the investigation), linked incident events, and incident details. The figure below illustrates how Darktrace compiles and presents incident information and insights in the UI.

Overview of information provided in an ‘AI Analyst Report’ that could be relevant to registrants reporting a material cybersecurity incident to the SEC
Figure 1: Overview of information provided in an ‘AI Analyst Report’ that could be relevant to registrants reporting a material cybersecurity incident to the SEC

It should be noted that Instruction 4 to the new Form 8-K Item 1.05 specifies the “registrant need not disclose specific or technical information about its planned response to the incident or its cybersecurity systems, related networks and devices, or potential system vulnerabilities in such detail as would impede the registrant’s response or remediation of the incident” (5).

As such, the incident report generated by Darktrace may provide more information, including technical details, than is needed for the 8-K disclosure. In general, users should take appropriate measures to ensure that the information they provide in SEC reports meets the requirements outlined by the relevant regulations. Darktrace cannot recommend that an incident should be reported, nor report an incident itself.

Determine if a cybersecurity incident is material

Item 1.05 requires registrants to determine for themselves whether cybersecurity incidents qualify as ‘material’. This involves considerations such as ‘the nature scope and timing of the incident, and the material impact or reasonably likely material impact on the registrant, including its financial condition and results of operations.’

While it is up to the registrant to determine, consistent with existing legal standards, the materiality of an incident, Darktrace’s solution can provide relevant information which might aid in this evaluation. Darktrace’s Threat Visualizer user interface provides a 3-D visualization of an organization’s digital environment, allowing users to assess the likely degree to which an attack may have spread throughout their digital environment. Darktrace Cyber AI Analyst identifies connections among discrete occurrences of threatening activity, which can help registrants quickly assess the ‘scope and timing of an incident'.

Furthermore, in order to establish materiality it would be useful to understand how an attack might extend across recipients and environments. In the image below, Darktrace/Email identifies how a user was impacted across different platforms. In this example, Darktrace/Email identified an attacker that deployed a dual channel social engineering attack via both email and a SaaS platform in an effort to acquire login credentials. In this case, the attacker useding a legitimate SharePoint link that only reveals itself to be malicious upon click. Once the attacker gained the credentials, it proceeded to change email rules to obfuscate its activity.

Darktrace/Email presents this information in one location, making such investigations easier for the end user.

Darktrace/Email indicating a threat across SaaS and email
Figure 2: Darktrace/Email indicating a threat across SaaS and email

What is regulation S-K item 106 of the SEC cybersecurity rules?

The new rules add Item 106 to Regulation S-K requiring registrants to disclose certain information regarding their risk management, strategy, and governance relating to cybersecurity in their annual reports on Form 10-K. The new rules add Item 16K to Form 20-F to require comparable disclosure by [foreign private issuers] in their annual reports on Form 20-F. (6)

SEC cybersecurity rules: Risk management

Specifically, with respect to risk management, Item 106(b) and Item 16K(b) require registrants to describe their processes, if any, for assessing, identifying, and managing material risks from cybersecurity threats, as well as whether any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect them. The new rules include a non-exclusive list of disclosure items registrants should provide based on their facts and circumstances. (6)

SEC cybersecurity rules: Governance

With respect to governance, Item 106 and Item 16K require registrants to describe the board of directors’ oversight of risks from cybersecurity threats (including identifying any board committee or subcommittee responsible for such oversight) and management’s role in assessing and managing material risks from cybersecurity threats. (6)

How can Darktrace solutions aid in disclosing their risk management, strategy, and governance related to cybersecurity?

Impact scores

Darktrace End-to-End (E2E) leverages AI to understand the complex relationships across users and devices to model possible attack paths, giving security teams a contextual understanding of risk across their digital environments beyond isolated CVEs or CVSS scores. Additionally, teams can prioritize risk management actions to increase their cyber resilience through the E2E Advisory dashboard.

Attack paths consider:

  • Potential damages: Both the potential consequences if a given device was compromised and its immediate implications on other devices.
  • Exposure: Devices' level of interactivity and accessibility. For example, how many emails does a user get via mailing lists and from what kind of sources?
  • Impact: Where a user or asset sits in terms of the IT or business hierarchy and how they communicate with each other. Darktrace can simulate a range of possible outcomes for an uncertain event.
  • Weakness: A device’s patch latency and difficulty, a composite metric that looks at attacker MITRE methods and our own scores to determine how hard each stage of compromise is to achieve.

Because the SEC cybersecurity rules require “oversight of risks from cybersecurity threats” and “management’s role in assessing and managing material risks from cybersecurity threats” (6), the scores generated by Darktrace E2E can aid end-user’s ability to identify risks facing their organization and assign responsibilities to address those risks.

E2E attack paths leverage a deep understanding of a customer’ digital environment and highlight potential attack routes that an attacker could leverage to reach critical assets or entities. Difficulty scores (see Figure 5) allow security teams to measure potential damage, exposure, and impact of an attack on a specific asset or entity.

An example of an attack path in a digital environment
Figure 3: An example of an attack path in a digital environment

Automatic executive threat reports

Darktrace’s solution automatically produces Executive Threat Reports that present a simple visual overview of model breaches (i.e., indicators of unusual and threatening behaviors) and activity in the network environment. Reports can be customized to include extra details or restricted to high level information.

These reports can be generated on a weekly, quarterly, and yearly basis, and can be documented by registrants in relation to Item 106(b) to document parts of their efforts toward assessing, identifying, and managing material risks from cybersecurity threats.

Moreover, Cyber AI Analyst incident reports (described above) can be leveraged to document key details concerning significant previous incidents identified by the Darktrace solution that the registrant determined to be ‘material’.

While the disclosures required by Item 106(c) relate to the governance processes by which the board of directors, the management, and other responsible bodies within an organization oversee risks resulting from cybersecurity threats, the information provided by Darktrace’s Executive Threat Reports and Cyber AI Analyst incident reports can also help relevant stakeholders communicate more effectively regarding the threat landscape and previous incidents.

DISCLAIMER

The material above is provided for informational purposes only. This summary does not constitute legal or compliance advice, recommendations, or guidance. Darktrace encourages you to verify the contents of this summary with your own advisors.

References

  1. Note that the rule does not set forth any specific timeline between the incident and the materiality determination, but the materiality determination should be made without unreasonable delay.
  2. https://www.sec.gov/files/form8-k.pdf
  3. https://www.sec.gov/news/press-release/2023-139
  4. https://www.ecfr.gov/current/title-17/chapter-II/part-229
  5. https://www.sec.gov/files/form8-k.pdf
  6. https://www.sec.gov/corpfin/secg-cybersecurity
Inside the SOC
Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.
Written by
Kendra Gonzalez Duran
Principal Analyst

More in this series

No items found.

Blog

/

OT

/

June 9, 2026

Healthcare’s OT Cybersecurity Gap: Why Hospitals Must Make the Same Security Investments as Regulated Critical Infrastructures

healthcare OTDefault blog imageDefault blog image

Rethinking the healthcare attack surface

When most people think about Operational Technology (OT) cybersecurity, they think about oil & gas pipelines, utilities, manufacturing plants, or power grids. However, hospitals & healthcare systems have quickly become a point of focus in the OT cybersecurity community as they do employ a variety of OT in the form of IoMT (Internet of Medical Things) networked devices such as: infusion pumps, imaging systems, patient monitoring equipment, laboratory systems, and traditional industrial control systems (ICS) in the form of smart building management systems (BMS) and even on site power generation control systems. 

These healthcare environments are no longer just traditional IT ecosystems, they are cyber-physical environments where disruption can directly impact patient care, operational continuity, and ultimately patient safety.

The OT cybersecurity expertise gap in healthcare organizations

Our research in the OT cybersecurity space revealed a concerning trend. Many hospitals and healthcare networks lack dedicated OT cybersecurity teams, OT security full time employees (FTE) and even OT expertise in the form of OT security certifications when compared to other critical infrastructure sectors.

On the other hand, within industries such as energy and manufacturing, we encounter more mature OT security programs that employ full time employees  dedicated to OT cybersecurity with OT security certifications and expertise to secure industrial and operational environments and lead investment in OT security processes and technology.

When reviewing the top 20 U.S. Hospitals by market cap, given what is publicly available on LinkedIn, only one FTE with an OT cybersecurity certification was found. The certifications that were searched for include: GIAC GICSP, GIAC GRID, GIAC GCIP and all ISA/IEC 62443 certifications. When replicating this same search across the top 20 utility providers in the US, 73 FTEs with OT related certifications were identified. As a control group, we looked within financial services, an industry NOT expected to have OT systems worth investing in FTEs to protect. However, the top 20 US financial institutions had 18 FTEs with OT related certifications. 

What these findings reveal

Overall, the findings regarding healthcare investment in OT security FTEs are surprising given how operationally dependent modern healthcare has become on OT. So why aren't hospitals investing in OT security personnel at the rate of peer critical infrastructures? It could just be lack of awareness; however, there are other, more plausible reasons.  

Based on historical trends in cyber incidents within the healthcare space, one could speculate that there is significantly greater likelihood of being victim to an attack that  focuses on extortion or data theft rather than an attack on specific OT systems. The amount of ransomware events incurred in healthcare, that historically do not target OT systems, may divert attention and security investment to the parts of the attack surface most likely to be targeted by ransomware. Additionally, data theft is a relevant threat objective for hospitals given PHI, PCI and PII, and data theft does not traditionally align with attacks targeting OT.  

However, with focused investment to address data theft and with adversaries new capability to string together chains of vulnerabilities of different severity scores using advancements in AI, we could be entering a threat landscape where adversaries pivot their tactics to target exposed and under protected devices and systems like OT. For example, although not a patient records database, predominant IOMT protocols HL7 and DICOM are unencrypted plaintext protocols and unless encrypted it is very simple for adversaries, who are sniffing traffic, to identify protected health information (PHI) in these communication protocols.

Why OT cybersecurity expertise can be effective for healthcare organizations

The convergence of IT, OT, and IoMT is already here, and threat actors are increasingly aware of the operational vulnerabilities that come with it. Additionally, as AI solutions such as agentic or generative applications are adopted and deployed, the attack surface will continue to change as permissions, and new connections will exist to support AI efficiency. From a cybersecurity standpoint, the reality is that many healthcare organizations are still working to establish consistent visibility and governance across their enterprise-connected devices and systems as their attack surface is changing in real time.  As the healthcare sector remains a significant target for cyber-attacks, hospitals would be well advised to begin addressing their operational environments OT as a critical component of their attack surface and invest in securing them first with people, then process and technology. 

What can healthcare organizations do to secure their OT

Including OT in current cybersecurity processes such as red teaming and testing incident response plans that take OT into account alongside building dedicated OT security capabilities including improving OT network visibility, leveraging OT network anomaly detection, micro-segmentation, and secure remote access will become essential steps in strengthening healthcare resilience. 

However, before any of the above processes or investments in technology can be made, these healthcare organizations, like the other critical infrastructure sectors, need to invest in the people with the experience in OT security to lead, implement, manage and audit the investment in OT cybersecurity technology and processes.  In cases where headcount cannot be added, investment in OT security certifications, such as the ones listed in this article, and participation on OT security events focused on practitioner training for existing cybersecurity employees can move the needle in terms of bringing OT expertise to the existing team.  

In an industry where uptime and safety are as mission critical as they are for a power utility, OT cybersecurity FTEs can no longer be viewed as optional for healthcare organizations and must become part of the foundation of modern healthcare cybersecurity strategy. 

[related-resource]

Continue reading
About the author
Daniel Simonds
Director of Operational Technology

Blog

/

AI

/

June 9, 2026

Always On, Always Defending: Inside the AI-Driven SOC

Default blog imageDefault blog image

Today’s SOC: A system under pressure

The SOC has been described as the:

  • Control center for security systems management  
  • Operations center for log analysis and alert response
  • Command center for network monitoring and investigation

But the CISO at a manufacturer of industrial power solutions says today’s SOC is far more dynamic:

“The SOC is an active player in a never-ending chess match where the pieces are always moving, the rules are constantly changing, and we’re continuously adjusting our tactical and strategic approaches to keep up.”

This has created a balancing act for cybersecurity professionals:

  • Support expanding digital estates to fuel innovation…or risk limiting business growth
  • Stop advanced cyberattacks at scale…or risk severe financial and reputational impacts

But balancing these responsibilities is increasingly difficult. Attackers are operating at machine speed and scale using sophisticated, adaptive techniques that overwhelm teams and bypass legacy defenses. At the same time, more than half of cybersecurity teams are understaffed, and 65% have unfilled cybersecurity positions (ISACA).

“The SOC is hitting its breaking point,” admits the VP of IT at a U.S.-based risk management services provider.”

“That’s the hard reality,” affirms a Chief Digital and Technology Officer at a North American financial services organization. “SOC teams are drowning in alerts, wasting time researching the most benign incidents while missing critical threats.”

Traditional tools lack the context and autonomous reasoning needed to determine which ones are truly dangerous, requiring analysts to manually review and respond. But with thousands of alerts hitting SOCs daily, the task exceeds human capacity, with recent industry research revealing that 40% to 42% of security alerts now go uninvestigated.

“Our old governance models of throwing bodies at it, that’s not going to work,” says the Group CIO of a multinational holding company. “Attackers move at machine speed, and our defenses have to operate at the same pace. Using AI for cybersecurity is the only way to do that.”

Why AI is essential

AI is about speed, scale, and context.

SOC teams are still expected to find the proverbial “needle in a haystack”, but the haystack keeps growing. As digital infrastructures expand and threat actors use AI to rapidly scale attacks and exploit vulnerabilities, success isn’t about keeping up but changing the approach.

This is where AI comes in, enabling security teams to operate at machine speed and scale by:

  • Analyzing vast amounts of data and correlating signals across domains within seconds
  • Detecting possible threats in real time and taking immediate action to mitigate risk
  • Prioritizing threats by severity and uncovering contextual details for rapid triage

The power of AI isn’t theoretical; it is transforming how today’s businesses operate.

The Chief Digital and Technology Officer at a financial services firm says within a single month of using Darktrace, the solution tracked billions of network events, autonomously investigated tens of millions of those incidents, and added the equivalent of 1,000 analyst hours of investigation. It also found threats that bypassed traditional tools, autonomously responding to contain or disrupt the threat on over 30,000 emails, including 18,000 the firm’s native email filter missed.

When Darktrace says it “takes action on a threat,” it generally means its platform can move beyond just detecting suspicious activity and automatically respond to contain or disrupt the threat—such as isolating a device, slowing or blocking suspicious network traffic, disabling risky user activity, or triggering security workflows—depending on how the system is configured.

AI isn’t about displacing humans.

AI is a powerful tool for handling large-scale data analysis, pattern detection, and repetitive tasks, but it cannot replace human critical thinking. By removing mindless work that does not require judgment, AI frees analysts to focus on what humans do best: applying reasoning, context, and sound decision-making to complex threats.

“AI is a workforce maximizer,” says the Chief Digital and Technology Officer. “It augments our team by monitoring and detecting threats at a scale beyond human capacity while providing the critical context we need to make faster, more confident decisions.

Rather than replacing people, AI is changing how security professionals work. Analysts can reclaim time previously spent on tedious, manual triage to focus on higher priorities and proactive initiatives like advanced threat hunting, strategic risk management, and security enablement and training.

“Aside from risk mitigation, our biggest ROI is in efficiency,” says the Head of Security at global business services provider. “What used to take 90% of our investigation time is now handled automatically, so we can focus on the final 10%, which requires critical thinking."

For SOC teams under pressure, the impact can be transformative, with security leaders reporting significant real-world outcomes using Darktrace Self-Learning AITM, including:

  • Phishing emails reduced by 99%
  • 1 million+ emails autonomously analyzed each month, with no email-based incidents reported
  • Potential threats autonomously neutralized in under four seconds, on average  
  • 99% of investigations conducted autonomously, surfacing only the high-priority 1% of threats for analyst review

How AI optimizes the SOC

To protect the modern enterprise, you absolutely need the right tools,” says CTO at leading European fashion brand. “Without them you’re a victim. With them, you’re a defender. AI and the machine speed detect/response it enables makes it the most critical tool.”

Replacing chaos with clarity and control  

It’s important to note that different AI solutions address different needs. Companies should clearly understand their specific use case and select the solution that best aligns with their goals, requirements, and operational needs.  

When it comes to choosing cybersecurity in a machine-speed threat landscape, time is the most valuable resource. Organizations require AI that can move from insight to action by:

  • Learning an organization’s unique behavioral patterners
  • Correlating signals across domains to detect anomalous activity
  • Prioritizing events and autonomously responding at scale to the vast majority
  • Quarantining high-impact threats until the SOC can investigate
  • Arming analysts with deep, contextual information to accelerate investigations

“Darktrace AI gives us threat detections based on facts, not guesses,” says the Group CIO. “It moves the SOC beyond alert overload to confident, informed decision-making. When Darktrace flags something, we pay attention. False positives are very rare, so we act with speed and confidence without second-guessing.”

Replacing anxiety with confidence and peace of mind

Every missed alert can have real-world consequences.

The strain of maintaining constant vigilance at scale without holistic visibility and automation is taking its toll on security professionals: 66% report increased stress, and nearly half say it’s the reason they’re leaving the field (ISACA).

The CIO at a professional sports organization says that’s not surprising: “If you don’t know what’s going on, anything could be happening. Operating with that level of uncertainty and control is incredibly stressful.”

AI gives SOCs the power to be proactive by unifying telemetry across network, email, identity, and cloud environments to provide a complete picture and a stronger foundation for action. The benefits for analysts, both personally and professionally, are significant:

  • Achieve greater work-life balance: “Knowing that Darktrace has our backs 24/7 and will take immediate action to stop threats  means we can now work normal hours and take vacations without worrying,” says the Chief Digital and Technology Officer.
  • Feel in control with deeper insights: “It not only stops and quarantines threats but also provides the deep context we need to quickly investigate and respond,” explains the Head of Security.  
  • Gain confidence the business is protected 24/7: “We can sleep at night. With Darktrace I’m confident that even with a small team we can protect the business 24/7,” adds the former retail CIO.

The modern SOC: A system of balance

Elevated to a core pillar of business strategy, the modern SOC is now considered:

  • The nerve center of cyber risk and proactive defense
  • The AI-powered command center for operational resilience
  • The strategic hub for contextual decision-making at scale

The SOC has evolved from a reactive center responsible for managing systems into a proactive, frontline defender and strategic business enabler—integral to innovation and growth.

AI is the key to balancing these responsibilities.

“We can only grow as fast as we can secure the business,” says the Head of Security. “AI gives us the speed, scale, and confidence to do both.”

*Metrics are based on the customer’s interview, data and sourced from its monthly Cyber AI Insights reporting.

Continue reading
About the author
The Darktrace Community
Your data. Our AI.
Elevate your network security with Darktrace AI