In an effort to strengthen record keeping and address security vulnerabilities, the US Securities and Exchange Commission (SEC) has banned the use of third-party texting and messaging apps on its employees’ work phones. This decision aligns the SEC’s internal practices with the standards it imposes on the financial industry.
What happened: The SEC’s new policy follows the imposition of approximately $3 billion in fines on financial firms for inadequate record-keeping of business communications on mobile devices and apps such as Signal AND Meta Platform Inc.‘S WhatsappBloomberg reported.
Earlier this year, a security breach involving one of the SEC’s social media accounts led to this decision. According to an SEC spokesperson, the agency now has limited access to third-party messaging applications, including SMS and iMessage, to reduce the risk of system compromise and improve recordkeeping.
See also: Jim Cramer says he would ‘sell’ this Chinese Tesla rival after shares fall more than 47% in 2024
Wall Street has been forced to reconsider how employees communicate on business matters using cell phones because of this regulatory scrutiny. THE Commodity Futures Trading Commission (CFTC) It is also reportedly contemplating a similar measure for its staff.
Because matter: The SEC’s cybersecurity practices have come under scrutiny in recent months. In January, the regulator’s X account was compromised via the phone provided by an agency staffer, resulting in a fake post that briefly boosted the price Bitcoin Bitcoin/USD. This incident highlighted that even a regulator with an assertive stance on cybersecurity requirements is not immune.
For more context, in January, Elon Musk‘S X confirmed the SEC’s Account X compromise, attributing it to a lack of two-factor authentication.
The SEC later revealed that the fake tweet announcing the approval of Bitcoin spot ETFs was the result of a “SIM swap” attack. The FBI investigated the hack, coordinating with the SEC to investigate the matter.
Read next: Delta flight returns to Atlanta after takeoff: Boeing 757 ‘yaws aggressively’
Image via Shutterstock
Designed by
Benzinga NeuroBy
Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system leverages Benzinga’s extensive ecosystem, including native data, APIs, and more to create rich, timely stories for you. Learn more.