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SEC Draws Scrutiny for Slow Response to Hack - ABI

Many of the most senior officials at the Securities and Exchange Commission remained unaware of a 2016 hack of the agency’s computer system for months after it occurred, raising questions about how the breach was initially handled, the Wall Street Journal reported today. The SEC’s new chairman, Jay Clayton, uncovered the extent of the hack only after he launched a wholesale review of the agency’s cybersecurity vulnerabilities in the spring, according to a statement he released this week. The SEC’s other commissioners learned about the hack in recent days. A former chief operating officer wasn’t told about the intrusion when it was detected last year. The pace of discovery and the way that information was disclosed is likely to increase scrutiny of an agency that in recent years has pushed financial firms to gird against attacks and urged public companies to tell shareholders about the risks of cyber[-]intrusions.

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