SEC orders Equiniti to pay $850K over alleged lax cybersecurity
By 
Adrianne Appel2024-08-21T21:03:00
Equiniti Trust Company has agreed to pay $850,000 to the Securities and Exchange Commission (SEC) to settle allegations that its failed security measures allowed millions in client funds to be stolen in two cyber incidents.
Equiniti, formerly known as American Stock Transfer & Trust Company, experienced two cyber intrusions, in 2022 and 2023, respectively, which led to the loss of more than $6.6 million in client funds, the SEC said a press release Tuesday. American Stock reimbursed clients who experienced losses, the agency noted.
However, it was American Stock’s poor security measures that allowed the intruders to be successful at stealing client assets, the SEC said in its order.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefGovernment contractor fined $307K after third-party hack compromised personal data
It was a double whammy of cybersecurity no-nos for a federal contractor hit with a data breach: The personal data of Medicare beneficiaries contained in unencrypted screenshots were allegedly compromised when their third-party vendor’s server was hacked.
-
PremiumExpert: Clorox ‘trying to do the right thing’ with rapid cyberattack disclosures
The timing of a recent cyberattack against Clorox juxtaposed against the Securities and Exchange Commission’s adoption of its cybersecurity incident disclosure rule soon to take effect has presented a case study regarding how companies might seek to meet the requirements of the rule.
-
Blog
Some key cyber-security tips for financial firms
As the SEC and FINRA are taking cyber-security much more seriously, John Reed Stark outlines a few ways in which financial firms can also do more to protect their data.
More from Regulatory Enforcement
-
ArticleFrench investigators target anticompetitive practices in largest accounting firms
Major accountancy firms in France are under investigation for anti-competitive practices. The French competition watchdog embarked on a series of “unannounced inspections” and removed documents relating to audit and reporting on Jan. 13.
-
ArticleEU investigation into Grok may expose problems with DSA rather than compliance failings
The European Commission has launched a formal investigation against Elon Musk’s X under the Digital Services Act over fears that its AI tool Grok may be producing and disseminating illegal material.
-
ArticleFormer ADM execs inflated operating profits, SEC alleges
Three former executives at Archer-Daniels-Midland intentionally misled investors by inflating the performance of the company’s Nutrition unit, the U.S. Securities and Exchange Commission has alleged.