The US Securities and Exchange Commission (SEC) received a warning about its insufficient cybersecurity measures just before a major hack occurred. An Office of Inspector General (OIG) report identified various areas of potential risk within the SEC’s information security program. As a result of the hack, $90 million was lost, prompting concerns about market manipulation.

Uncovered report reveals the SEC was notified about its weak cybersecurity practices shortly before a significant hack, leading to major financial losses and concerns about market manipulation.

SEC Warned About Cybersecurity Weaknesses

The OIG report was released two weeks prior to the X account hack on January 9. The report by Cotton & Company Assurance and Advisor pointed out the ineffective cybersecurity measures at the SEC, urging the commission to address the identified risk areas to enhance its information security program.

Details of the OIG Report

The detailed report, spanning nearly 30 pages, highlighted areas where the SEC needed to improve its security protocols. These included maintaining vulnerability disclosure policies and fulfilling logging requirements. The SEC’s Chief Information Officer...