The Securities and Exchange Commission (SEC) has announced it established the Cyber and Emerging Technologies Unit (CETU), appointing Laura D’Allaird as the chief of the new unit. The CETU will replace the Crypto Assets and Cyber Unit and contains around 30 fraud specialists and attorneys from a variety of SEC offices.
This unit will focus on defending retail investors from malicious actors and cyber-related misconduct. With the staff’s fintech and cyber expertise, the unit will focus on the following priority areas:
- Fraud driven by emerging technologies (such as artificial intelligence and machine learning)
- Fraud perpetuated by social media, false websites or the dark web
- Obtaining nonpublic data via hacking
- Taking over retail brokerage accounts
- Blockchain technology and crypto asset fraud
- Determining cybersecurity rules and regulations compliance among regulated entities
Acting Chairman Mark T. Uyeda states, “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.”