SEC Creates Cyber-Unit
The SEC’s Enforcement Division has created a new Cyber Unit targeting “cyber-related misconduct.” The new Cyber-Unit will target market manipulation schemes using electronic and social media, hacking schemes, account intrusions, and the dark web. The Co-Director of the SEC’s Enforcement Division labeled cyber-related threats as one of the “greatest risks facing investors and the securities industry.”
OUR TAKE: We suspect that this Cyber Unit will ultimately morph into its own office (See OCIE, Whistleblowers). If you have been on vacation in the woods for the last 3 years and have not yet retained a third party firm to test your cybersecurity readiness, we recommend moving quickly to catch up to the rest of the industry.