The Securities and Exchange Commission (SEC) has created a new Cyber Unit to focus on targeting cyber-related misconduct and launched a retail strategy task force to implement initiatives that directly affect retail investors.
The Cyber Unit, which is part of the SEC’s Enforcement Division, will target market manipulation schemes involving false information spread through electronic and social media. It will also investigate hacking, violations involving distributed ledger technology and initial coin offerings, misconduct perpetrated using the dark web, intrusions into retail brokerage accounts, and cyber-related threats to trading platforms and other critical market infrastructure.
“Cyber-related threats and misconduct are among the greatest risks facing investors and the securities industry,” Stephanie Avakian, co-director of the SEC’s Enforcement Division, said. “The Cyber Unit will enhance our ability to detect and investigate cyber threats through increasing expertise in an area of critical national importance.”
Over the past several years, the Enforcement Division has developed substantial expertise in the detection and pursuit of fraudulent conduct. The Cyber Unit will consolidate and advance these efforts and include staff from across the Enforcement Division.
Robert Cohen has been appointed chief of the Cyber Unit. Since 2015, he and Joseph Sansone have been co-chiefs of the Market Abuse Unit, which he will also continue to lead.
The Retail Strategy Task Force will develop initiatives to identify misconduct impacting retail investors. It will leverage data analytics and technology to identify large-scale misconduct affecting retail investors.
“Protecting the welfare of the Main Street investor has long been a priority for the commission,” Steven Peikin, co-director of the SEC’s Enforcement Division, said. “By dedicating additional resources and expertise to developing strategies to address misconduct that victimizes retail investors, the division will better protect our most vulnerable market participants.”