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SEC Discloses Hack of System

September 26, 2017

SEC Discloses Hack of System

September 25, 2017 | Luke Schmidt | Blue Vault

File photo of the U.S. Securities and Exchange Commission logo hangs on a wall at the SEC headquarters in Washington

On September 20, 2017, SEC Chairman, Jay Clayton disclosed in a statement that a hack was detected last year in its corporate filing system. The agency learned last month that the breach may have provided cybercriminals with corporate secrets from which they profited. The intrusion is being blamed on a software vulnerability in its test system, and the investigation is ongoing.

While few details are being released, the hack of the SEC’s online database targeted their test Edgar system. This allows smaller companies and startups who are unfamiliar with filling out SEC forms get comfortable with the process without publicly releasing information. Accessing non-public announcements before being released to the public would allow the cybercriminals to make money by anticipating the response of a share price.

While the SEC did not reveal any details about the information obtained or which companies were impacted, it did disclose that the weakness was fixed promptly after discovery. It went on to say that they do not believe it resulted in any unauthorized access to personal identifiable information.

The disclosure of this hack comes just two weeks after Equifax, Inc. announced that it had been the victim of a breach that could lead to the theft of personal data on 143 million Americans.

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