Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 251

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 251
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 on our digital technologies, computer and email systems, software, and networks to conduct our operations. Although we
have information security procedures and controls in place, our technologies, systems, networks, and our clients’ devices may become
the target of cyberattacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse,
loss or destruction of our or our clients’ confidential, proprietary and other information, or otherwise disrupt our or our clients’
or other third parties’ business operations. Third parties with whom we do business or that facilitate our business activities,
including financial intermediaries, or vendors that provide services or security solutions for our operations, and other third parties,
could also be sources of operational and information security risk to us, including from breakdowns or failures of their own systems
or capacity constraints.

To date, we have experienced
cybersecurity incidents. For example, we experienced cybersecurity incidents in June of 2023 in which an unauthorized third party gained
access to the email accounts of two of our employees. After investigation, we could not definitively determine that sensitive customer
information in these email accounts were not accessed by the unauthorized party. In response, we notified the affected customers of the
incident in early September 2023 and have taken steps to mitigate our and our customers’ exposure to unauthorized activity. To
date, we have incurred expenses of approximately $25,000 related to cybersecurity incidents.

We may experience additional
cybersecurity incidents in the future that are or may be deemed to be material. While we have disaster recovery and other policies and
procedures designed to prevent or limit the effect of the failure, interruption or security breach of our information systems, there
can be no assurance that any such failures, interruptions or security breaches will not occur or, if they do occur, that they will be
adequately addressed. Our risk and exposure to these matters remains heightened because of the evolving nature of these threats. As a
result, cybersecurity and the continued development and enhancement of our controls, processes and practices designed to protect our
systems, computers, software, data and networks from attack, damage or unauthorized access, remain a focus for us. As threats continue
to evolve, we may be required to expend additional resources to continue to modify or enhance our protective measures or to investigate
and remediate information security vulnerabilities. Disruptions or failures in the physical infrastructure or operating systems that
support our businesses and clients, or cyber-attacks or security breaches of the networks, systems or devices that