Key Takeaways
- The SEC has created the Cyber and Emerging Technologies Unit led by Laura D’Allaird to combat cyber-related misconduct.
- CETU will focus on fraud involving AI, social media, dark web, and blockchain technology to protect retail investors.
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The US SEC established on Thursday the Cyber and Emerging Technologies Unit (CETU) to combat cyber-related misconduct and protect retail investors from emerging technology threats.
Laura D’Allaird will lead the new unit, which replaces the Crypto Assets and Cyber Unit and consists of about 30 fraud specialists and attorneys across multiple SEC offices.
“Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce,” said Acting Chairman Mark Uyeda. “The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”
The newly formed unit will prioritize a range of cyber-related threats impacting the financial industry. Key focus areas include the growing use of artificial intelligence and machine learning in fraudulent schemes, scams perpetrated through social media, the dark web, or deceptive websites, and hacking activities aimed at acquiring material nonpublic information.
The CETU will also address the increasing problem of retail brokerage account takeovers, fraud involving blockchain technology and crypto assets, cybersecurity compliance of regulated entities, and fraudulent disclosures by public issuers concerning cybersecurity incidents and risks.
Story is in development.
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