SEC Bolsters Teams Tackling Cybersecurity - Is Your Firm Ready

The Securities and Exchange Commission has bolstered the size of its teams dealing with cybersecurity and cryptocurrency, according to the associate director of its enforcement division. Last year, the Securities and Exchange Commission sanctioned eight firms for cybersecurity failures.

“Cybersecurity is a big focus for us, crypto is as well,” Melissa Hodgman said Tuesday at the 2022 Financial Industry Regulatory Authority Annual Conference.

Last year, the SEC sanctioned eight firms for cybersecurity failures that compromised their clients’ personal information. The eight firms, which agreed to settle the charges, were various Cetera entities and registered either as broker-dealers, registered investment advisor firms, or both.

With firms facing growing cybersecurity threats, the SEC has been devoting more resources to dealing with any shortcomings in how they are being handled.

“We have increased our staffing here by 20, so we’re up to 50 who are focused just on cyber and crypto,” Hodgman said. “But everyone in the division has a cyber or a crypto case; it’s not only those 50 people who are looking at it for our division.” SOURCE