SAN FRANCISCO—Reports indicate that the SEC is investigating Yahoo to determine if the company should have notified investors faster about the two separate data breaches it suffered.
As CUToday.info reported, Yahoo has disclosed that the company has been hacked twice. In September 2016, Yahoo disclosed that more than 500-million accounts were likely compromised in a 2014 breach. Late last year, the company also disclosed that a 2013 breach may have compromised more than one-billion user accounts.
In December, the Securities and Exchange Commission launched an investigation into whether the search giant violated civil securities laws and issued requests for related documents, The Wall Street Journal reported, citing unnamed sources with knowledge of the investigation.
The SEC requires companies to report cyber incidents that may have an impact on corporate finances. A civil case could result in the SEC imposing penalties on the organization that it's investigating, although the Yahoo investigation is reportedly still in its early stages and may not result in any such penalties, Bank Info Security stated.