The United States Securities and Exchange Commission (SEC) dealt with a considerable security breach on January 9, 2024, when its authorities X (Twitter) account succumbed to a SIM swap attack.
This event caused an incorrect message being published about the approval of an area Bitcoin exchange-traded fund (ETF), setting off a turbulent reaction in the cryptocurrency market.
How Hackers Took Control of SEC’s X Account
2 days after the breach, the SEC and its telecom provider recognized the cause: a SIM swap attack. This attack moves a contact number to a various gadget without the owner’s understanding. It enabled unapproved access to the SEC’s X account.
Find out more: 15 Most Common Crypto Scams To Look Out For
The SEC declares that the breach did not take place through its system however through its telecom provider. After acquiring control of the SEC’s telephone number, the opponent reset the password for the SEC X account. Law enforcement is examining the SIM swap and how the assailant understood the associated phone number.
Significantly, the SEC is working together with the Federal Bureau of Investigation (FBI), Department of Homeland Security, Commodity Futures Trading Commission (CFTC), Department of Justice (DoJ), and its Enforcement Division to examine the matter. The SEC’s Inspector General is likewise associated with the examination.
To the neighborhood’s surprise, the SEC had handicapped multi-factor authentication (MFA) on the X account because July 2023 due to gain access to problems. After the breach, the regulator allowed the MFA.
“Saving your personnel a couple of seconds when visiting is most likely not worth the billions in damages brought on by scams after being sim switched,” stated Boring Security.
The security lapse had significant repercussions. An incorrect tweet about a Bitcoin ETF triggered a $230 million liquidation in the crypto market. Bitcoin’s rate increased to $48,000, then fell dramatically after the SEC exposed the tweet as incorrect.
This breach reveals the requirement for strong security in digital interactions. The handicapped MFA function indicate the dangers of compromising security for benefit.
Learn more: Crypto Social Media Scams: How to Stay Safe
This event highlights the continuous requirement for watchfulness versus cyber hazards. For companies like the United States Securities and Exchange Commission, securing digital possessions and interaction is crucial for public trust and monetary market stability.
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