Poor Security Posture leads to US Securities and Exchange Commission Hack

The incident caused a temporary surge in the price of bitcoin before quickly dropping.
17 January 2024
Image by CyberBeat

U.S. lawmakers are calling on the Securities and Exchange Commission (SEC) to enhance their cyber security measures following a recent hack that affected the agency's official Twitter account, known as X. The unauthorised post, which falsely claimed the approval of bitcoin exchange traded funds (ETFs), caused a temporary surge in bitcoin's value before quickly plummeting.

Senators Ron Wyden and Cynthia Lummis have sent a letter to the SEC, demanding an investigation into the incident and criticising the agency for their perceived failure to implement proper cyber security practices. The hackers allegedly gained control over the account by accessing a phone number associated with it, taking advantage of the SEC's lack of two-factor authentication.

Two-factor authentication (MFA) is a proven security feature that requires users to enter a password and a unique verification code sent via email or mobile device in order to access an online account. Wyden and Lummis are urging the SEC to evaluate their use of MFA, specifically emphasising the need for phishing-resistant measures.

The SEC has already initiated an investigation in collaboration with law enforcement agencies to address the hack and its implications.

- CyberBeat


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