Statement On Cybersecurity, SEC Commissioner Michael S. Piwowar

Statement On Cybersecurity, SEC Commissioner Michael S. Piwowar

A top Senate Democrat on Thursday said the private and public sector needs to boost its cybersecurity after the Securities and Exchange Commission (SEC) revealed that hackers might have profited off of insider information stolen from the agency's disclosure filing system.

SEC chairman Jay Clayton revealed the hack of its Edgar database in a statement on September 20. Federal prosecutors alleged that 32 traders and hackers reaped more than $100 million in illegal proceeds in a scheme so brazen that the traders would send shopping lists of corporate news releases for sneak-peeking purposes to the hackers in order to place trades. The SEC provided little information, so it's still unknown which companies may have been affected or if hackers made a profit.

Clayton said that the SEC has experienced cybersecurity vulnerabilities before, including an incident in 2014 when the inspector general found that certain SEC laptops that may have contained nonpublic information could not be located, and found instances in which SEC employees transmitted nonpublic information through nonsecure personal email accounts.

Clayton said that the intrusion "may have provided the basis for illicit gain through trading".

Hackers may have used information stolen from the United States financial regulator to make "illicit gain" through insider trading, the body's chairman admitted.

Clayton did not delve into details about what information was illicitly obtained, but said the investigation is ongoing and the SEC is "coordinating with appropriate authorities".

Such attacks undermine confidence in financial markets and can create risks for investors and consumers, the SEC said.

It says that the system has been patched to remove this software vulnerability. The SEC did not specify companies whose information may have been exposed, adding the intrusion did not expose any personally identifiable information or otherwise pose "systemic" risk.

The SEC files financial market disclosure documents through its EDGAR system, which processes more than 1.7 million electronic filings in any given year. "We must be vigilant". It's meant to ensure that all parties have access to the same information at the same time to minimize the ability of some to take advantage of the release of advance financial information.

Although the problem was nearly immediately patched in 2016, it's noteworthy that the regulator only became aware that the glitch could have provided the basis for "illicit gains through trading" last month.

Related:

  • Zone of the ENders VR Announced for PS4 and PC

    Zone of the ENders VR Announced for PS4 and PC

    When The 2nd Runner - Mars launches in the spring, most PC VR headsets should work through Valve's open SteamVR service. Zone of the Enders (2001) and Zone of the Enders 2: The 2nd Runner (2003) are the pinnacle of high speed robot action.
    Global Resource Coin

    Global Resource Coin

    In addition, from the year 2018 GRC’s cryptocurrency rate is expected to grow due to its social usefulness and relevance. In order to do this, you need to have a considerable amount of money, a special financial education and a special license.
    Microgaming’s vision of the future with virtual reality

    Microgaming’s vision of the future with virtual reality

    It is true that this is only a prototype and Microgaming has yet to actually make a huge cultural impact with a device like this. At the moment, players are basically projected into a virtual reality world through the use of this technology.
  • Small quake  reported in southern IL

    Small quake reported in southern IL

    People react as a real quake rattles Mexico City on September 19, 2017 as an natural disaster drill was being held in the capital. Local media has reported that thousands of people were out on the streets after being evacuated as a precautionary measure.
    True Love Exists!

    True Love Exists!

    Moreover, for the first time, Ivy and David even did not see each other, due to the fact that their communication was online. It should be noticed that these two people began relations just as friends, as they lived in different countries.
    The first capital of casinos

    The first capital of casinos

    The reputation of Macao as the place of the famous casinos, brothels and clans triads selling opium was born in the 18th century. And it lasted until the 60s of the 20th century, while a powerful businessman Stanley Ho became interested in the region.
  • Nifty ends at new peak of 10153.10, Sensex rises 151 points

    Nifty ends at new peak of 10153.10, Sensex rises 151 points

    The Sensex touched a high of 32,499.88 points and a low of 32,383.82 during intra-day trade. The BSE market breadth was bearish with 1,311 declines and 1,293 advances.
    Oil markets firm on rising refinery demand, falling U.S.  rig count

    Oil markets firm on rising refinery demand, falling U.S. rig count

    Crude oil traders showed little response to late Tuesday's American Petroleum Institute's weekly inventories report. But analysts doubt that such an extension would have much of an impact on the overall oil market.
    TRAI's Decision Disappoint Airtel, Vodafone

    TRAI's Decision Disappoint Airtel, Vodafone

    Jio said it was "appalling that the incumbent operators", made allegations that the new rates were not transparent and baseless. The Telecom Regulatory Authority of India (TRAI ) has slashed the interconnection usage charges ( IUC ) to 6 paise.
  • Bilic outlines new plan to manage Carroll

    Bilic outlines new plan to manage Carroll

    He said: "It looked worse, it looked like it was going to be a few months but touchwood it's only going to be a couple of weeks". It's a good opportunity for those players to impress. "It's a big game for us and that is all we think about", he said .
    What Got Mark Hamill to Return to the Star Wars Galaxy?

    What Got Mark Hamill to Return to the Star Wars Galaxy?

    While Luke will probably have a key role to play in the new movies, it’s certain the new actors will dominate the storyline. He felt he needed to know what all those years have done to Luke even if the material doesn’t get told in the actual movie.
    Could Miami Win a Bid to Host the CFP National Championships after Clinching Super Bowl 2020?

    Could Miami Win a Bid to Host the CFP National Championships after Clinching Super Bowl 2020?

    The opinion that the Super Bowl can accommodate South Florida could also mean that it is fit for the CFP National Championships. Sun Life Stadium had the opportunity to host the Capital One Orange Bowl last season, which took place on New Year’s Eve.

Comments

Other news