Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 52

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 52
---
 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 our clients use to
access our products and services could result in client attrition, regulatory fines, penalties or intervention, reputational damage,
reimbursement or other compensation costs, and/or additional compliance costs, any of which could materially adversely affect our results
of operations or financial condition.

Our
board and its committees oversee our cybersecurity, disaster recovery and business continuity risk management framework. Our governance
oversight of cybersecurity, disaster recovery and business continuity risk management framework may not be effective in mitigating risks
and/or losses.

Our board of directors
oversees our cybersecurity, disaster recovery and business continuity risk management framework. The board of directors reviews and approves
our cybersecurity, disaster recovery and business continuity risk management framework on an