Adrian Johnson
TLDR:
- Equiniti Trust has settled a cyber case with the SEC for $850,000.
- The company failed to secure $6.6 million in client funds due to cyber intrusions in 2022 and 2023.
The Securities and Exchange Commission settled a case with Equiniti Trust for failing to secure client funds after cyber intrusions resulted in the theft of $6.6 million. Equiniti, formerly known as American Stock Transfer & Trust, has agreed to pay $850,000 to settle the civil fraud charges. The company was hacked in 2022 and 2023, resulting in the loss of client funds. The SEC found that the company violated the Securities Exchange Act of 1934 and in addition to the financial penalty, Equiniti also agreed to a cease-and-desist order and censure. The incidents involved an unknown hacker hijacking an email chain in 2022 and creating fake accounts linked to real accounts in 2023, resulting in the theft of millions of dollars. The company has taken swift actions to make clients and shareholders whole and has made significant investments in cybersecurity to prevent future incidents.
Full Article:
The Securities and Exchange Commission settled a case with Equiniti Trust for failing to secure client funds after cyber intrusions resulted in the theft of $6.6 million. Equiniti, formerly known as American Stock Transfer & Trust, has agreed to pay $850,000 to settle the civil fraud charges. The company was hacked in 2022 and 2023, resulting in the loss of client funds. The SEC found that the company violated the Securities Exchange Act of 1934 and in addition to the financial penalty, Equiniti also agreed to a cease-and-desist order and censure. The incidents involved an unknown hacker hijacking an email chain in 2022 and creating fake accounts linked to real accounts in 2023, resulting in the theft of millions of dollars. The company has taken swift actions to make clients and shareholders whole and has made significant investments in cybersecurity to prevent future incidents.
