TheCorporateCounsel.net

Yesterday, the SEC announced the formation of a new Cyber and Emerging Technologies Unit (CETU). Its stated focus is “combatting cyber-related misconduct.” Acting Chairman Uyeda notes that the unit will “root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”

This unit replaces the former Crypto Assets and Cyber Unit and is staffed with approximately 30 fraud specialists. The announcement lists “public issuer fraudulent disclosure relating to cybersecurity” as a priority area in addition to:

– Fraud committed using emerging technologies, such as artificial intelligence and machine learning
– Use of social media, the dark web, or false websites to perpetrate fraud
– Hacking to obtain material nonpublic information
– Takeovers of retail brokerage accounts
– Fraud involving blockchain technology and crypto assets
– Regulated entities’ compliance with cybersecurity rules and regulations

– Meredith Ervine