Whistleblowers who report a cyber breach can now do so with less fear of losing their jobs. The Sarbanes-Oxley Act was created to protect whistleblowers when they disclose information they reasonably believe relates to any of the following:
- Alleged mail, bank, wire, or security fraud
- Alleged violations of the U.S. Securities and Exchange Commission’s (SEC) rules and regulations
- Delayed notification of a major cyber event
The Dodd-Frank Wall Street Reform and Consumer Protection Act offers an incentive to cyber security whistleblowers. Under this act, a whistleblower may be entitled to an award between 10 and 30 percent of the monetary sanctions collected by the SEC and other law enforcement authorities. To be eligible for this award, a whistleblower must voluntarily provide information to the SEC with original information about a possible violation of the federal securities law that has already occurred, is in the process of occurring, or is about to occur that leads to a successful SEC action against the company, resulting in monetary sanctions that exceed $1 million. Whistleblowers can also recover under the False Claims Act (FCA) or the National Defense Authorization Act for Fiscal Year 2013 (NDAA).
Beyond the above, there has recently been increased pressure on companies to be more careful when dealing with potential tipsters. In fact, the securities regulator recently issued guidance on how companies should handle cybersecurity issues. Not long after that, it fined Altaba Inc., formerly Yahoo Inc., $35 million for its handling of a 2014 hack. This was the first time the SEC penalized the victim of a breach.
If you have been harassed or threatened, or you have lost your job for whistleblowing, you need strong advocacy to obtain the justice and compensation you deserve. To learn more, please call the Philadelphia whistleblower lawyers at Sidney L. Gold & Associates, P.C. at 215-569-1999 or contact us online for a free consultation. We promise powerful advocacy for your case. Our office is centrally located in Philadelphia, and we serve clients from the surrounding areas, including Bucks County, Chester County, Delaware County, and Montgomery County.