October 16, 2018

SEC releases investigative report on cyber threats and accounting controls

The Securities and Exchange Commission has published a report on the Enforcement Division’s investigation of nine public companies that were victims of securities fraud.  The report notes that the companies wired nearly $100 million to fraudulent recipients, and concludes that, in the future, in order not to be found in violation of Section 13(b)(2)(B), issuers should be mindful of the risks of cyber fraud and reassess their internal accounting systems in order to safeguard against these risks.  None of the companies was charged with the commission of securities laws violations in connection with the fraud.

SEC press release | SEC Release No. 84429 – Report of Investigation