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flag Ransomware groups now use regulatory complaints as a top cyber threat, forcing companies to balance disclosure risks with legal liability.

flag A 2026 white paper by Professor Kieran Upadrasta identifies legal liability, not traditional hacking, as the top cybersecurity threat, driven by ransomware groups filing formal regulatory complaints with agencies like the SEC and EU authorities to pressure victims. flag This "triple extortion" tactic combines data encryption, leaks, and regulatory weaponization, forcing CISOs to balance timely disclosure against accusations of cover-ups. flag AI-powered audits and sudden compliance shifts based on technical benchmarks amplify risk, prompting calls for "liability-resilient" security systems with real-time cryptographic audit trails, explainable AI, and integrated legal-security teams. flag The report urges redefining the CISO as a "Chief Defensibility Officer" and preparing for stricter EU rules like NIS2 and the Cyber Resilience Act, including 24-hour breach reporting and product withdrawals.

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