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Navigating the SEC's New Cybersecurity and Incident Disclosure Rules

January 11, 2024
4
Min Read
Compliance

Recently, the U.S Securities and Exchange Commission (SEC) had adopted stringent cybersecurity and incident disclosure rules, placing a heightened emphasis on the imperative need for robust incident detection, analysis, and reporting processes.

Following these new rules, public companies are finding themselves under a microscope, obligated to promptly disclose any cybersecurity incident deemed material. This disclosure mandates a detailed account of the incident's nature, scope, and timing within a stringent 4-business-day window. In essence, companies are now required to offer swift detection, thorough analysis, and the delivery of a comprehensive report on the potential impact of a data breach for shareholders and investors.

SEC's Decisive Actions in 2023: A Wake-Up Call for CISOs

The SEC's resolute stance on cybersecurity became clear with two major actions in the latter half of 2023. In July, the SEC implemented rules, effective December 18, mandating the disclosure of "material" threat/breach incidents within a four-day window. Simultaneously, annual reporting on cybersecurity risk management, strategy, and governance became a new norm. These actions underscore the SEC's commitment to getting tough on cybersecurity, prompting Chief Information Security Officers (CISOs) and their teams to broaden their focus to the boardroom. The evolving threat landscape now demands a business-centric approach, aligning cybersecurity concerns with overarching organizational strategies.

Adding weight to the SEC's commitment, in October, SolarWinds Corporation and its CISO, Timothy G. Brown was charged with fraud and internal control failures relating to allegedly known cybersecurity risks and vulnerabilities. This marked a historic moment, as it was the first time the SEC brought cybersecurity enforcement claims against an individual. SolarWinds' case, where the company disclosed only "generic and hypothetical risks" while facing specific security issues, serves as a stark reminder of the SEC's intolerance towards non-disclosure and intentional fraud in the cybersecurity domain. It's evident that the SEC's cybersecurity mandates are reshaping compliance norms.

This blog will delve into the intricacies of these rules, their implications, and how organizations, led by their CISOs, can proactively meet the SEC's expectations.

Implications for Compliance Professionals

Striking the Balance: Over-Reporting vs. Under-Reporting

Compliance professionals must navigate the fine line between over-reporting and under-reporting, a task akin to a high-stakes tightrope walk.

Over-Reporting: The consequences of hyper-vigilance can't be underestimated. Reporting every incident, regardless of its material impact, might instigate unwarranted panic in the market. This overreaction could lead to a domino effect, causing a downturn in stock prices and inflicting reputational damage.

Under-Reporting: On the flip side, failing to report within the prescribed time frame has its own set of perils. Regulatory penalties loom large, and the erosion of investor trust becomes an imminent risk. The SEC's strict adherence to disclosure timelines emphasizes the need for precision and timeliness in reporting.

Market Perception

Shareholder & Investor Trust: Balancing reporting accuracy is crucial for maintaining shareholder and investor trust. Over-reporting may breed skepticism and lead to potential divestment, while delayed reporting can erode trust and raise questions about the organization's cybersecurity commitment.

Regulatory Compliance: The SEC mandates timely and accurate reporting. Failure to comply incurs penalties, impacting both finances and the organization's regulatory standing. Regulatory actions, combined with market fallout, can significantly affect the long-term reputation of the organization.

Strategies for Success

The Day Before - Minimize the Impact of the Data Breach

To effectively minimize the impact of a data breach, the first and most critical step is understanding where your sensitive data resides. By identifying, mapping, and properly classifying this data within your environment, you establish the foundation for strong protection and informed risk mitigation.

Data Security Posture Management (DSPM) solutions strengthen this foundation by providing continuous visibility, analysis, and reinforcement of your data security posture. With DSPM, organizations can confidently safeguard sensitive information in the face of evolving threats by enabling the ability to:

  • Discovers any piece of data you have and classifies the different data types in your organization.
  • Automatically detects the risks of your sensitive data (including data movement) and remediation. 
  • Aligns your data protection practices with security regulations and best practices. Incorporates compliance measures for handling personally identifiable information (PII), protected health information (PHI), credentials, and other sensitive data.

From encryption to access controls, adopting a comprehensive security approach safeguards your organization against potential breaches. It’s crucial to conduct a thorough risk assessment to measure vulnerabilities and potential threats to your data. Understanding the risks allows for targeted and proactive risk management strategies.

Security posture score, which includes the data and issues overview, highlighting the top data classes at risk.
An example of a security posture score, which includes the data and issues overview, highlighting the top data classes at risk.

The Day After: Maximizing the Pace to Handle the Impact (reputation, money, recovery, etc)

In the aftermath of a breach, having a “Data Catalog” with data sensitivity ranking helps with understanding the materiality of the breach and quick resolution and reporting within the 4-day window.

Swift incident response is also paramount; and this can be accomplished by establishing a rapid plan for mitigating the impact on reputation, finances, and overall recovery. This is where the data catalog comes into play again, by helping you understand which data was extracted, facilitating quick and accurate resolution. The next step for the ‘day after’ is actively managing your organization's reputation post-incident through transparent communication and decisive action, which contributes to trust and credibility rebuilding.

A complete catalog, showing the data stores, the account, the sensitivity and category of the data, as well as the data context.
An example of a complete catalog, showing the data stores, the account, the sensitivity and category of the data, as well as the data context.

Finally, always conduct a comprehensive post-incident analysis for valuable insights, and enhance future security measures through a continuous improvement cycle. Building resilience into your cybersecurity framework by proactively adapting and fortifying defenses, best positions your organization to withstand future challenges. Adhering to these strategies enables organizations to navigate the cybersecurity landscape effectively, minimizing risks, ensuring compliance, and enhancing their ability to respond swiftly to potential incidents.

Empowering Compliance in the Face of SEC Regulations with Sentra’s DSPM

Sentra’s DSPM solution both discovers and classifies sensitive data, and aligns seamlessly with SEC's cybersecurity and incident disclosure rules. The real-time monitoring swiftly identifies potential breaches, offering a critical head start within the 4-day disclosure window.

Efficient impact analysis enables compliance professionals to gauge materiality and consequences for shareholders during reporting. Sentra's DSPM streamlines incident analysis processes, adapting to each organization's needs. Having a "Data Catalog" aids in understanding breach materiality for quick resolution and reporting, while detailed reports ensure SEC compliance.

By integrating Sentra, organizations meet regulatory demands, fortify data security, and navigate evolving compliance requirements. As the SEC shapes the cybersecurity landscape, Sentra guides towards a future where proactive incident management is a strategic imperative.

To learn more, schedule a demo with one of our experts.

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Meni is an experienced product manager and the former founder of Pixibots (A mobile applications studio). In the past 15 years, he gained expertise in various industries such as: e-commerce, cloud management, dev-tools, mobile games, and more. He is passionate about delivering high quality technical products, that are intuitive and easy to use.

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Ward Balcerzak
Ward Balcerzak
December 11, 2025
3
Min Read

US State Privacy Laws 2026: DSPM Compliance Requirements & What You Need to Know

US State Privacy Laws 2026: DSPM Compliance Requirements & What You Need to Know

By 2026, American data privacy will look very different as a wave of new state laws redefines what it means to protect sensitive information. Organizations face a regulatory maze: more than 20 states will soon require not only “reasonable security” but also Data Protection Impact Assessments (DPIAs), explicit limits on data collection, and, in some cases, detailed data inventories. These requirements are quickly becoming standard, and ignoring them simply isn’t an option. The risk of penalties and enforcement actions is climbing fast.

But through all these changes, one major question remains: How can any organization comply if it doesn’t even know where its most sensitive data is? Data Security Posture Management (DSPM) has become the solution, making data visibility and automation central for meeting ongoing compliance needs.

Mapping the New Wave of State Privacy Mandates

Several state privacy laws going into effect in 2025 and 2026 are raising the stakes for compliance. Kentucky, Indiana, and Rhode Island’s new laws, effective January 1, 2026, require both security measures and DPIAs for handling high-risk or sensitive data. Minnesota’s law stands out even more: it moves past earlier vague “reasonable” security language and mandates comprehensive data inventories.

Other key states include Minnesota, which explicitly requires data inventories, Maryland with strict data minimization rules, and Tennessee, which gives organizations an affirmative defense if they’ve adopted a NIST-aligned privacy program. These requirements mean organizations now need to track what data they collect, know exactly where it’s stored, and show evidence of compliance when asked. If your organization operates in more than one state, keeping up with this web of laws will soon become impossible without dedicated solutions (US consumer privacy laws 2025 update).

Why Data Visibility is Now Foundational to Compliance

To meet DPIA, minimization, and security safeguard rules, you need full visibility into where sensitive or regulated data lives - and how it moves across your environment. Recent privacy laws are moving closer to GDPR-like standards, with DPIAs required not only for biometric data but also for broad categories like targeted advertising and profiling. Minnesota leads with its clear requirement for full data inventories, setting the standard that you can’t prove compliance unless you understand your data (US cybersecurity and data privacy review and outlook 2025).

This shift puts DSPM front and center: you now need ongoing discovery and classification of your entire sensitive data footprint. Without a strong data foundation, organizations will find it hard to complete DPIAs, handle audits, or defend themselves in investigations.

Automation: The Only Viable Path for Assessment and Audit Readiness

State privacy rules are getting more complicated, and many enforcement authorities are shortening or removing 'right-to-cure' periods. That means manual compliance simply won’t keep up. Automation is now the only way to manage compliance as regulations tighten (5 trends to watch: 2025 US data privacy & cybersecurity).

With DSPM and automation, organizations get ongoing discovery, real-time data classification, and instant evidence collection - all required for fast DPIAs and responsive audits. For companies facing regulators or preparing for multi-state oversight, this means you already have the proof and documentation you need. Relying on spreadsheets or one-time assessments at this point only increases your risk.

Sentra: Your Strategic Bridge to Privacy Law Compliance

Sentra’s DSPM platform is built to tackle these expanding privacy law requirements. The agentless platform covers AWS, Azure, GCP, SaaS, and hybrid environments, removing both visibility gaps and the hassle found in older solutions (Sentra: DSPM for compliance use cases).

With continuous, automated discovery and data classification, you always know exactly where your sensitive data is, how it moves, and how it’s being protected. Sentra’s integrated Data Detection & Response (DDR) catches and fixes risks or policy violations early, closing gaps before regulators - or attackers - can take advantage (Sensitive data exposure insight). Combined with clear reporting and on-demand audit documentation, Sentra helps you meet new state privacy laws and stay audit-ready, even as your business or data needs change.

Conclusion

The arrival of new state privacy laws in 2025 and 2026 is changing how organizations must handle sensitive data. Security safeguards, DPIAs, minimization, and full inventories are now required - not just nice-to-have.

DSPM is now a compliance must-have. Without complete data visibility and automation, following the web of state rules isn’t difficult - it’s impossible. Sentra’s agentless, multi-cloud platform keeps your organization continuously informed, giving compliance, security, and privacy teams the control they need to keep up with new regulations.

Want to see how your organization stacks up for 2026 laws? Book a DSPM Compliance Readiness Assessment or check out Sentra’s automated DPIA tools today.

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David Stuart
David Stuart
Gilad Golani
Gilad Golani
December 4, 2025
3
Min Read

Zero Data Movement: The New Data Security Standard that Eliminates Egress Risk

Zero Data Movement: The New Data Security Standard that Eliminates Egress Risk

Cloud adoption and the explosion of data have boosted business agility, but they’ve also created new headaches for security teams. As companies move sensitive information into multi-cloud and hybrid environments, old security models start to break down. Shuffling data for scanning and classification adds risk, piles on regulatory complexity, and drives up operational costs.

Zero Data Movement (ZDM) offers a new architectural approach, reshaping how advanced Data Security Posture Management (DSPM) platforms provide visibility, protection, and compliance. This post breaks down what makes ZDM unique, why it matters for security-focused enterprises, and how Sentra provides an innovative agentless and scalable design that is genuinely a zero data movement DSPM .

Defining Zero Data Movement Architecture

Zero Data Movement (ZDM) sets a new standard in data security. The premise is straightforward: sensitive data should stay in its original environment for security analysis, monitoring, and enforcement. Older models require copying, exporting, or centralizing data to scan it, while ZDM ensures that all security actions happen directly where data resides.

ZDM removes egress risk -shrinking the attack surface and reducing regulatory issues. For organizations juggling large cloud deployments and tight data residency rules, ZDM isn’t just an improvement - it's essential. Groups like the Cloud Security Alliance and new privacy regulations are moving the industry toward designs that build in privacy and non-stop protection.

Risks of Data Movement: Compliance, Cost, and Egress Exposure

Every time data is copied, exported, or streamed out of its native environment, new risks arise. Data movement creates challenges such as:

  • Egress risk: Data at rest or in transit outside its original environment  increases risk of breach, especially as those environments may be less secure.
  • Compliance and regulatory exposure: Moving data across borders or different clouds can break geo-fencing and privacy controls, leading to potential violations and steep fines.
  • Loss of context and control: Scattered data makes it harder to monitor everything, leaving gaps in visibility.
  • Rising total cost of ownership (TCO): Scanning and classification can incur heavy cloud compute costs - so efficiency matters.  Exporting or storing data, especially shadow data, drives up storage, egress, and compliance costs as well.

As more businesses rely on data, moving it unnecessarily only increases the risk - especially with fast-changing cloud regulations.

Legacy and Competitor Gaps: Why Data Movement Still Happens

Not every security vendor practices true zero data movement, and the differences are notable. Products from Cyera, Securiti, or older platforms still require temporary data exporting or duplication for analysis. This might offer a quick setup, but it exposes users to egress risks, insider threats, and compliance gaps - problems that are worse in regulated fields.

Competitors like Cyera often rely on shortcuts that fall short of ZDM’s requirements. Securiti and similar providers depend on connectors, API snapshots, or central data lakes, each adding potential risks and spreading data further than necessary. With ZDM, security operations like monitoring and classification happen entirely locally, removing the need to trust external storage or aggregation. For more detail on how data movement drives up risk.

The Business Value of Zero Data Movement DSPM

Zero data movement DSPM changes the equation for businesses:

  • Designed for compliance: Data remains within controlled environments, shrinking audit requirements and reducing breach likelihood.
  • Lower TCO and better efficiency: Eliminates hidden expenses from extra storage, duplicate assets, and exporting to external platforms.
  • Regulatory clarity and privacy: Supports data sovereignty, cross-border rules, and new zero trust frameworks with an egress-free approach.

Sentra’s agentless, cloud-native DSPM provides these benefits by ensuring sensitive data is never moved or copied. And Sentra delivers these benefits at scale - across multi-petabyte enterprise environments - without the performance and cost tradeoffs others suffer from. Real scenarios show the results: financial firms keep audit trails without data ever leaving allowed regions. Healthcare providers safeguard PHI at its source. Global SaaS companies secure customer data at scale, cost-effectively while meeting regional rules.

Future-Proofing Data Security: ZDM as the New Standard

With data volumes expected to hit 181 zettabytes in 2025, older protection methods that rely on moving data can’t keep up. Zero data movement architecture meets today's security demands and supports zero trust, metadata-driven access, and privacy-first strategies for the future.

Companies wanting to avoid dead ends should pick solutions that offer unified discovery, classification and policy enforcement without egress risk. Sentra’s ZDM architecture makes this possible, allowing organizations to analyze and protect information where it lives, at cloud speed and scale.

Conclusion

Zero Data Movement is more than a technical detail - it's a new architectural standard for any organization serious about risk control, compliance, and efficiency. As data grows and regulations become stricter, the old habits of moving, copying, or centralizing sensitive data will no longer suffice.

Sentra stands out by delivering a zero data movement DSPMplatform that's agentless, real-time, and truly multicloud. For security leaders determined to cut egress risk, lower compliance spending, and get ahead in privacy, ZDM is the clear path forward.

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Charles Garlow
Charles Garlow
December 3, 2025
3
Min Read

Petabyte Scale is a Security Requirement (Not a Feature): The Hidden Cost of Inefficient DSPM

Petabyte Scale is a Security Requirement (Not a Feature): The Hidden Cost of Inefficient DSPM

As organizations scramble to secure their sprawling cloud environments and deploy AI, many are facing a stark realization: handling petabyte-scale data is now a basic security requirement. With sensitive information multiplying across multiple clouds, SaaS, and AI-driven platforms, security leaders can't treat true data security at scale as a simple add-on or upgrade.

At the same time, speeding up digital transformation means higher and less visible operational costs for handling this data surge. Older Data Security Posture Management (DSPM) tools, especially those boasting broad, indiscriminate scans as evidence of their scale, are saddling organizations with rising cloud bills, slowdowns, and dangerous gaps in visibility. The costs of securing petabyte-scale data are now economic and technical, demanding efficiency instead of just scale. Sentra solves this with a highly-efficient cloud-native design, delivering 10x lower cloud compute costs.

Why Petabyte Scale is a Security Requirement

Data environments have exploded in both size and complexity. For Fortune 500 companies, fast-growing SaaS providers, and global organizations, data exists across public and hybrid clouds, business units, regions, and a stream of new applications.

Regulations such as GDPR, HIPAA, and rules from the SEC now demand current data inventories and continuous proof of risk management. In this environment, defending data at the petabyte level is now essential. Failing to classify and monitor this data efficiently means risking compliance and losing business trust. Security teams are feeling the strain. I meet security teams everyday and too many of them still struggle with data visibility and are already seeing the cracks forming in their current toolset as data scales.

The Hidden Cost of Inefficient DSPM: API Calls and Egress Bills

How DSPM tools perform scanning and discovery drives the real costs of securing petabyte-scale data. Some vendors highlight their capacity to scan multiple petabytes daily. But here's the reality: scanning everything, record by record, relying on huge numbers of API calls, becomes very expensive as your data estate grows.

Every API call can rack up costs, and all the resulting data egress and compute add up too. Large organizations might spend tens of thousands of dollars each month just to track what’s in their cloud. Even worse, older "full scan" DSPM strategies jam up operations with throttling, delays, and a flood of alerts that bury real risk. These legacy approaches simply don’t scale, and organizations relying on them end up paying more while knowing less.

 

Cyera’s "Petabyte Scale" Claims: At What Cloud Cost?

Cyera promotes its tool as an AI-native, agentless DSPM that can scan as much as 2 petabytes daily . While that’s an impressive technical achievement, the strategy of scanning everything leads directly to massive cloud infrastructure costs: frequent API hits, heavy egress, and big bills from AWS, Azure, and GCP.

At scale, these charges don’t just appear on invoices, they can actually stop adoption and limit security’s effectiveness. Cloud operations teams face API throttling, slow results, and a surge in remediation tickets as risks go unfiltered. In these fast-paced environments, recognizing the difference between a real threat and harmless data comes down to speed. The Bedrock Security blog points out how inefficient setups buckle under this weight, leaving teams stuck with lagging visibility and more operational headaches.

Sentra’s 10x Efficiency: Optimized Scanning for Real-World Scale

Sentra takes another route to manage the costs of securing petabyte-scale data. By combining agentless discovery with scanning guided by context and metadata, Sentra uses pattern recognition and an AI-driven clustering algorithm designed to detect machine-generated content—such as log files, invoices, and similar data types. By intelligently sampling data within each cluster, Sentra delivers efficient scanning while reducing scanning costs.

This approach enables data scanning to be prioritized based on risk and business value, rather than wasting time and money scanning the same data over and over again, skipping unnecessary API calls, lowering egress, and keeping cloud bills in check.

Large organizations gain a 10x efficiency edge: quicker classification of data, instant visibility into actual threats, lower operational expenses, and less demand on the network. By focusing attention only where it matters, Sentra matches data security posture management to the demands of current cloud growth and regulatory requirements.

This makes it possible for organizations to hit regulatory and audit targets without watching expenses spiral or opening up security gaps.Sentra offers multiple sampling levels, Quick (default), Moderate, Thorough, and Full, allowing customers to tailor their scanning strategy to balance cost and accuracy. For example, a highly regulated environment can be configured for a full scan, while less-regulated environments can use more efficient sampling. Petabyte-scale security gives the user complete control of their data enterprise and turns into something operationally and financially sustainable, rather than a technical milestone with a hidden cost. 

Efficiency is Non-Negotiable

Fortune 500 companies and digital-first organizations can’t treat efficiency as optional. Inefficient DSPM tools pile on costs, drain resources, and let vulnerabilities slip through, turning their security posture into a liability once scale becomes a factor. Sentra’s platform shows that efficiency is security: with targeted scanning, real context, and unified detection and response, organizations gain clarity and compliance while holding down expenses.

Don’t let your data protection approach crumble under petabyte-scale pressure. See what Sentra can do, reduce costs, and keep essential data secure - before you end up responding to breaches or audit failures.

Conclusion

Securing data at the petabyte level isn't some future aspiration - it's the standard for enterprises right now. Treating it as a secondary feature isn’t just shortsighted; it puts your company at risk, financially and operationally.

The right DSPM architecture brings efficiency, not just raw scale. Sentra delivers real-time, context-rich security posture with far greater efficiency, so your protection and your cloud spending can keep up with your growing business. Security needs to grow along with scale. Rising costs and new risks shouldn’t grow right alongside it.

Want to see how your current petabyte security posture compares? Schedule a demo and see Sentra’s efficiency for yourself.

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