SEC reveals hackers might have used stolen data for insider trading

SEC reveals hackers might have used stolen data for insider trading

Although the problem was nearly immediately patched in 2016, it's noteworthy that the regulator only became aware that the glitch could have provided the basis for "illicit gains through trading" last month.

Clayton goes on to disclose some of the potential ways the breach could have happened in the first place, including missing laptops containing nonpublic information, as well as instances where nonpublic information was transmitted through non-secured personal email accounts.

As Reuters said, the event shines a spotlight on SEC's shortcomings when it comes to security. Buried about 1,400 words in, you'll find an eyebrow-raising disclosure - the SEC was apparently hacked in 2016.

IT personnel patched the bug upon shortly following its discovery of the incident. The hack to the SEC's Edgar document-filing system was disclosed late in the evening and buried far down in a statement vaguely titled "Statement on Cybersecurity".

Not much. SEC Chairman Jay Clayton said the agency's review of the breach is ongoing and that it's "coordinating with the appropriate authorities".

"When you have one central repository for all this information - man, that's a target", said Republican Representative Bill Huizenga, chairman of the House subcommittee on Capital Markets, Securities, and Investment, which oversees the SEC.

Information like this moves stock prices - and it lives on the computer network of the Securities and Exchange Commission before it ever becomes public knowledge.

India has to compete with China, not doing that well: Rahul Gandhi
Gandhi said the strategic relationship with the United States is important but balance is also important in terms of all other countries.

Clayton said attempts to hack the financial industry would continue.

Clayton is scheduled to appear Tuesday before the Senate Banking Committee.

The U.S. Securities and Exchange Commission said Wednesday night that its online filing system was hacked and the culprits may have made profits illicit trades.

The disclosure followed public and non-public reports that detailed the SEC's cyber vulnerabilities as well as acknowledgement by the SEC itself of the scope of the risks posed by cyber attacks.

In 2015 hackers broke into EDGAR and published false information about plans a financial firm had to purchase Avon Products, prompting stock of the beauty products company to briefly surge. Through the flaw, the intruders were able to obtain information that hadn't been made public, Clayton said.

James Cox, a professor of securities law at Duke University, noted that Republican lawmakers and administration officials have been pressing for cuts to the SEC's budget - at a time when "they need to make the kind of hires" that would bolster their cybersecurity efforts.

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