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SEC Phone Number Hijacked: False Bitcoin ETF Approval Message Posted by Hacker, X Reports

SEC Phone Number Hijacked: False Bitcoin ETF Approval Message Posted by Hacker, X Reports

Police & Regulations

HANZO

Jan 10, 2024 at 09:16 am

The recent revelation of lax security measures within the Securities and Exchange Commission's (SEC) X account has sparked heightened concerns regarding the overall cybersecurity protocols of this influential regulatory body. In a departure from standard security practices, the SEC failed to implement fundamental security measures on its X account, previously associated with Twitter. This lapse was evident during a recent incident involving the dissemination of false information regarding the approval of a bitcoin Exchange-Traded Fund (ETF).

The Safety team at X conducted a thorough investigation, concluding on Tuesday with a statement shedding light on the misleading post about bitcoin ETF approval that was attributed to the compromised SEC account. According to X's findings, the compromise did not stem from any breach within its systems; rather, an unidentified individual seized control of a phone number associated with the @SECGov account through a third party.

We can confirm that the account @SECGov was compromised and we have completed a preliminary investigation. Based on our investigation, the compromise was not due to any breach of X’s systems, but rather due to an unidentified individual obtaining control over a phone number…
— Safety (@Safety) January 10, 2024

This clarification dispels speculations of an "inside job" or a "fat finger" scenario surrounding the erroneous post. The initial surge in the price of Bitcoin (BTC), triggered by the misleading information, swiftly reversed once SEC Chair Gary Gensler clarified the situation.

The incident raises substantial questions about the SEC's commitment to implementing basic security measures, especially given its pivotal role as the foremost investment regulator in the United States. Gensler, previously vocal about the significance of investor security, now faces scrutiny over the apparent shortcomings in the SEC's own security protocols.

U.S. Senators J.D. Vance and Thom Tillis have voiced their concern by submitting a letter to the SEC, seeking an explanation for this cybersecurity lapse. They criticized the agency, entrusted with overseeing the core of the world's capital markets, for a significant error in maintaining security.

????BREAKING: Senators @JDVance1 & @SenThomTillis Demand Explanation For The SEC's Errant Announcement Of The Approval Of Spot-Bitcoin ETFs

"It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error." pic.twitter.com/xG77jM9xAM
— Senator Vance Press Office (@SenVancePress) January 10, 2024

This is a reminder to secure your financial accounts as well as protect against identity theft and fraud.

Remember to:
????Use strong passphrases or passwords
????Set up multifactor authentication
????Keep account alerts turned on#CybersecurityAwarenessMonth https://t.co/qitGkujLxD
— Gary Gensler (@GaryGensler) October 24, 2023

X further confirmed that the compromised account lacked two-factor authentication at the time of the incident, urging all users to enable this additional layer of security. As of now, there has been no immediate response from an SEC spokesperson regarding the statement. This incident serves as a stark reminder of the pressing need for robust cybersecurity measures, particularly within institutions responsible for overseeing financial markets.