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
-
News BriefFRC fines PwC, auditor combined $4.1M over 2019 work of Wyelands Bank
The U.K. Financial Reporting Council issued penalties against PwC and a former auditor over deficiencies on work related to the 2019 financial statements of now shuttered Wyelands Bank.
-
News BriefDOJ fines MORSE Corp $4.6M for lax cyber controls amid crack down on federal contractors
Yet another government contractor has been slapped with a fine by the Department of Justice for applying lax cybersecurity defenses on sensitive government data.
-
News BriefEU regulator questions 'culture of compliance' with Digital Markets Act at Apple, Google
The European Commission released its preliminary findings last week regarding Apple and Google not complying with the Digital Markets Act. It issued orders to both companies regarding their business practice and plans to release all of its findings next week.