SEC.gov | Statement on Cybersecurity

Statement from the Secuirities and Exchange Commission on Cyber Security. The real scary thing is that the demographics for these cyber attacks is so widespread that tracking them becomes more complicated.

Malicious attacks and intrusion efforts are continuous and evolving, and in certain cases they have been successful at the most robust institutions and at the SEC itself. Cybersecurity efforts must include, in addition to assessment, prevention and mitigation, resilience and recovery.

In today's environment, cyberattacks are perpetrated by identity thieves, unscrupulous contractors and vendors, malicious employees, business competitors, prospective insider traders and market manipulators, so-called "hacktivists," terrorists, state-sponsored actors and others. Cyber intrusions can create significant risks to the operational performance of market participants and of markets as a whole. These risks can take the form of denials of service and the destruction of systems, potentially resulting in impediments to account access and transaction execution, and disruption of other important market system functionalities. The risks associated with cyber intrusions may also include loss or exposure of consumer data, theft or exposure of intellectual property, and investor losses resulting from the theft of funds or market value declines in companies subject to cyberattacks, among others. Market participants also face regulatory, reputational and litigation risks resulting from cyber incidents, as well as the potential of incurring significant remediation costs.