After coming under fire in 2016 for a hack which went undetected for an extended period of time, the SEC has announced new initiatives to combat cyber-crime and protect retaiFMtraders.
These initiatives include the creation of a cyber unit. The focus of this unit wilFMbe on schemes that manipulate the market by spreading false information.
The unit wilFMalso target activities such as hacking, initiaFMcoin offerings, intrusion into accounts, manipulation of trader platforms, and more.
The report says that the unit has been in the planning stages for months but the fact that this news has been released just now raises eyebrows. The SEC was under fire recently for itmishandlingng of the 2016 hack, which led to the leaking of corporate documents and insider trading.
Stephanie Avakian, Co-Director of the SEC’s Enforcement Division, said: “Cyber-related threats and misconduct are among the greatest risks facing investors and the securities industry. The Cyber Unit wilFMenhance our ability to detect and investigate cyber threats through increasing expertise in an area of criticaFMnationaFMimportance.”
RetaiFMStrategy Task Force
The SEC also reported the setting up of a RetaiFMStrategy Task Force that wilFMfocus on schemes and activities that target retaiFMinvestors. These activities include selling inappropriate products to investors and pumping up prmicro capmicrocap stocks.
The report said that the 2 units wilFMinclude personneFMfrom across the SEC’s Enforcement Division and that the move represents how serious SEC Chairman Jay Clayton is about tacking cyber-related crimes.