Senate Finance Committee Calls for Investigation into SEC Twitter Hack
Senate Finance Committee Chair Sen. Ron Wyden, D-Ore., and Sen. Cynthia Lummis, R-Wyo., are urging an investigation into the recent compromise of the SEC’s Twitter account. They have asked the SEC Inspector General to look into the incident and the agency’s failure to follow cybersecurity best practices.
Phony Post and Compromised Account
A false post was sent out from the SEC’s account claiming approval for spot bitcoin ETFs, which was not true at the time. Chair Gary Gensler later confirmed that the SEC’s account had been compromised. The hacker gained control over a phone number associated with the account, as two-factor authentication was not enabled.
Industry Best Practices
Wyden and Lummis argue that the SEC should have used industry best practices to protect their social media accounts. They specifically mention enabling multi-factor authentication (MFA) and using phishing-resistant hardware tokens as essential security measures.
Past Warnings and Call for Investigation
The senators highlight past reports warning about the SEC’s poor cybersecurity practices. They reference a report from December that found the agency’s information security program to be ineffective. Wyden and Lummis urge an investigation into the agency’s use of MFA and phishing-resistant MFA to identify any remaining security gaps.
Request for Updates
The senators request an update on the investigation and the SEC’s remediation efforts by February 12th. Other lawmakers have also demanded answers from the SEC regarding the incident.
Hot Take: SEC Faces Scrutiny Over Twitter Hack
The recent compromise of the SEC’s Twitter account has raised concerns among lawmakers. Senate Finance Committee members are calling for an investigation into the incident and the agency’s failure to implement proper cybersecurity measures. The compromised account sent out a false post about approving spot bitcoin ETFs. The senators emphasize the importance of industry best practices, such as enabling multi-factor authentication and using phishing-resistant hardware tokens. They also highlight past warnings about the SEC’s inadequate cybersecurity practices. The SEC is expected to provide updates on the investigation and remediation efforts.
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