SEC Warns Registrants of Risks Associated with Dangerous Malware

Akin Gump published a client alert on the July 10 Risk Alert published by the Office of Compliance Inspections and Examinations (OCIE) regarding the increasing frequency and sophistication of ransomware attacks targeting U.S. Securities and Exchange Commission (SEC) registrants. This Risk Alert is the second alert OCIE has released concerning a particular malware variant. The first was issued in 2017 following the widespread WannaCry ransomware attack, which affected organizations in more than 100 countries. This Risk Alert follows another alert issued by OCIE on June 23, 2020, warning registered investment advisers of compliance deficiencies observed during recent OCIE examinations. These Risk Alerts warn of OCIE’s expected focus in upcoming examinations, and all SEC registrants should ensure their cybersecurity policies and procedures meet regulatory standards and sufficiently protect against the growing threat of ransomware that OCIE has observed. Please click here to read the full alert.