20 October 2017

Watchdog criticises SEC cybersecurity

22 April 2014  |  5170 views  |  0 safelock

The Securities and Exchange Commission has been criticised by a US congressional watchdog over cybersecurity weaknesses, including the failure to authenticate users and encrypt sensitive data.

In an information security report (PDF), the Government Accountability Office (GAO) says that the SEC did not "consistently protect its system boundary from possible intrusions".

In addition, the regulator failed to audit and monitor actions taken on its networks, systems and databases. It even failed to restrict physical access to "sensitive assets".

In particular, the GAO found that the SEC did not securely configure the system at a new data centre, was lax in applying software patches and sloppy in disaster recovery planning. This was in part because of a failure to adequately oversee a contractor brought in to migrate to the new data centre last year.

The report comes just days after the SEC warned more than 50 registered broker-dealers and investment advisors that it would be checking their ability to counteract cyber-security threats.

The GAO says that because the SEC plays such an important role in the securities markets and relies heavily on computerised systems, it is essential that the commission has strong controls in place to protect information from misuse, fraudulent use, improper disclosure, manipulation, or destruction.

It is recommending that more effective oversight of contractors is introduced and risk management processes are tightened up.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

SEC to conduct market-wide cyber-security checks

SEC to conduct market-wide cyber-security checks

16 April 2014  |  6039 views  |  0 comments | 3 tweets | 3 linkedin
As cyber threat grows, EU regulators warn FS firms on IT budgets

As cyber threat grows, EU regulators warn FS firms on IT budgets

03 April 2014  |  6734 views  |  0 comments | 9 tweets | 2 linkedin
White House sets out voluntary cybersecurity framework

White House sets out voluntary cybersecurity framework

13 February 2014  |  5822 views  |  0 comments | 12 tweets | 8 linkedin
SEC proposes new crowdfunding rules; FCA begins consultation

SEC proposes new crowdfunding rules; FCA begins consultation

24 October 2013  |  5090 views  |  0 comments | 4 tweets | 3 linkedin
SEC preps public Web site for HFT data and research

SEC preps public Web site for HFT data and research

04 October 2013  |  9554 views  |  0 comments | 7 tweets | 2 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.capgemini.com

Who is commenting?

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15921 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
9019 views comments | 16 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8162 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7196 views comments | 9 tweets | 17 linkedin
Santander InnoVentures leads $6m funding round for Mexico's ePesosSantander InnoVentures leads $6m funding r...
6337 views comments | 6 tweets | 3 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job