On 25 September, SEC issued enforcement initiatives against cyber-threats.
- Two enforcement initiatives address cyber-based threats, protect retail investors.
- By the creation of SEC cyber unit to focus on targeting cyber-related misconduct.
- Establish retail strategy task force for schemes directly affecting retail investors.
- Followed SEC chairman 20 September statement of a cybersecurity breach.
Cyber Unit
- Cyber unit to focus enforcement division on targeting cyber-related misconduct.
- On market manipulation, false information spread BY electronic or social media.
- Hacking of material nonpublic information; misconduct perpetrated in dark web.
- Violation involving use of distributed ledger technology and initial coin offerings.
- Intrusions into retail brokerage accounts, which exposure client assets and data.
- Cyber-related threats to trading platforms or other critical market infrastructure.
- Unit complements initiatives to implement SEC internal cybersecurity risk profile.
- Cyber work group will coordinate information-sharing, risk monitoring, response.
- Robert Cohen has been appointed chief, has been co-chiefs of market abuse unit.
Retail Task Force
- Retail strategy task force to utilize proactive, targeted initiatives on misconduct.
- Aimed to identify and prevent large-scale misconduct that affecting retail investors.
- SEC enforcement has history of bringing cases for fraud targeting retail investors.
- On sale of unsuitable structured products, to microcap pump-and-dump schemes.
- Task force apply lessons from cases, also leverage data analytics and technology.
- Utilizing enforcement personnel from around country, work with staff across SEC.
- Including SEC national exam program and office of investor education, advocacy.
