undergroundnewsroom.com April 22, 2018

An SEC hack may have resulted in illicit trading, chairman says

22 September 2017, 12:49 | Jenny Fowler

Securities and Exchange Commission Chairman nominee Jay Clayton testifies on Capitol Hill in Washington at his confirmation hearing

Securities and Exchange Commission Chairman nominee Jay Clayton testifies on Capitol Hill in Washington at his confirmation hearing

Photo The Securities and Exchange Commission said a digital attack past year may have exposed information that could have been exploited for trading purposes.

The Securities and Exchange Commission said in a statement that it was still investigating the breach of its corporate filing system.

The 27-page report by the Government Accountability Office found the SEC did not always fully encrypt sensitive information, used unsupported software, failed to fully implement an intrusion detection system and made missteps in how it configured its firewalls, among other things.

This includes the possibility that hackers have used information gained in the hack to take part in illicit gain through trading. He blamed software vulnerably for the intrusion and said it was "patched promptly after discovery".

While the "incident" had been detected when it occurred in 2016, an internal audit ordered by Chairman Clayton discovered this August that nonpublic information was disclosed that could have been used by someone to gain an advantage in stock transactions.

EDGAR holds non-public information on corporate announcements, including mergers and acquisition filings and quarterly statements.

The SEC did not respond when asked about that review or whether it triggered the disclosure, but Clayton said in his Wednesday statement that he began reviewing the agency's cyber risk in May.

Toys R Us files for Chapter 11 reorganization
Private equity-backed Payless ShoeSource and Gymboree are among those that have filed for bankruptcy over the past two years. But in a statement sent to various media outlets, chairman and CEO Dave Brandon was optimistic about the future of the chain.

Rosneft to help pay for new Kurdistan export pipelines
It plans to undertake commissioning of the gas pipeline and first domestic supplies in 2019, with export supplies slated for 2020. At the same time, the Kurdistan Region is moving forward with its historic referendum on independence scheduled for Sep. 25.

Toshiba to Sell Memory Chip Unit to Group Including SK Hynix
Today a Korean news site is claiming that Toshiba has picked the Bain, Sk Hynix and Apple group to sell its memory unit to. If not, however, Toshiba will hold on to three joint ventures it has with WD and revise Bain's purchase price accordingly.

SEC Chairman Jay Clayton said the SEC detected the problem with the Edgar system, a main clearing house for filings by public companies, in 2016 and fixed it. The statement also detailed steps the SEC is taking to shore up its cybersecurity through the appointment of a new senior-level security workgroup, risk monitoring, and incident response improvements. The SEC said that the breach did not result in unauthorized access to personally identifiable information (PII), jeopardize the operations of the agency, or result in systemic risk.

"It's hugely problematic and we've got to be serious about how we protect that information as a regulator", Huizenga said.

"The chairman obviously recognises the irony of the SEC potentially serving as the unwitting tipper in an insider trading scheme", said John Reed Stark, president of a cyber consulting firm and a former SEC staff member.

The admission of the potential insider trading that may have resulted from the SEC breach came 1,400 words into a post of more than 4,000 words about how the SEC "is focused on identifying and managing cybersecurity risks".

"I recognize that even the most diligent cybersecurity efforts will not address all cyber risks that enterprises face", Clayton wrote.

In this case, the men were accused of using hackers to break into companies like Business Wire and PR Newswire over a period of five years to steal 150,000 not-yet-public news releases of publicly traded companies.

Other News

Trending Now

French Officials Don't Suspect Terror In Attack
The report says she remained at the site after the attack, and showed photographs of herself with burns. The assailant, a 41-year-old woman, was quickly arrested in the Mediterranean port city of Marseille .

Russian helicopter fires missile at spectators at drills
Both reports included a video purportedly showing the incident, which they said happened at an exercise at a firing range near St. Citing unnamed source online news portal 66.ru reported that the glitch caused the missile to blast off on its own.

Was Odell Beckham's hit on Lions LB Jarrad Davis a dirty play?
Beckham's impact on the game was negligible, and the Giants clearly could have lost just as inefficiently without him. We take a look at the five biggest plays from the Lions' 24-10 win over the Giants on Monday, Sept. 18, 2017.

Sardar Sarovar Dam signals 'ruin' of 10000 hapless farmers, says Greenpeace
Shah said at Ulihatu in Khunti district of Jharkhand, after laying the foundation stone for projects in 19 villages. Meanwhile government's decision to go ahead with the dam project was opposed by large number of affected villagers.

Slaven Bilic struggles fielding West Ham players in 'ideal positions'
I would leave out my two most important players, and one of them for me is Carroll. "I could have asked for more, I want him to do more", Bilic told reporters.

NKorea threatens to complete nuclear program amid USA sanctions
The US flew four F-35B stealth fighter jets and two B-1B bombers over the Korean peninsula today in a blunt show of force. The US envoy added that the President wasn't joking when he threatened the rogue nation with "fire and fury".

Korea threatens U.S. with 'horrible nuclear strike and miserable and final ruin'
President Trump, meanwhile, has gone further in his statements on addressing a hypothetical North Korean missile attack. General Assembly in NY on September 20, 2017.

Hardik Pandya foes from 'ping pong' to 'boom boom' against Australia
Peter Handscomb, who joined the squad on Saturday, however is available and the team management will take a final call on Sunday. India's Mahendra Singh Dhoni looks to the heavens as rain starts to fall during the Australian innings in Chennai on Sunday.

Auburn Backup Quarterback Sean White Released From Football Program
Malzahn says White "has made poor decisions that are not in the best interest of our program, and more importantly, himself". Move Auburn to SEC East? The Achilles heel of the Auburn football team the last two seasons has been quarterback depth.

US, allies use warplanes to show force to N. Korea
Secretary of State Rex Tillerson said he was waiting for the North to express interest in "constructive, productive talks". The U.S. military has described the exercises as training for readiness "to fight tonight" against North Korea if needed.