SEC says it was hacked despite earlier warning

Intrusion last year raises security fears for trading system.

The Securities and Exchange Commis- sion waited until Wednesday to disclose a hack of its corporate filing system that occurred last year. The disclosure raises questions about the agency’s ability to protect important financial information and comes as Americans are still weighing the consequences of the massive hack at Equifax.

The SEC, as the federal agency responsible for ensuring that markets function properly and for protecting investors, is under fire after disclosing the hack of

its electronic network for relaying company news and data to investors. The breach occurred despite repeated warnings in recent years about weaknesses in

the agency’s cybersecurity controls. E xperts question the length of time the SEC took to disclose the breach, and why it isn’t meeting the same standards it demands of cor- porate America.

While the agency discovered the breach to its corpo- rate filing system last year, it said it only became aware last month that information obtained by the intruders may have been used for ille- gal trading profits.

“It took quite a while,” said Robert Cattanach, an attorney at Dorsey & Whit- ney and former trial attorney for the Justice Department. “The integrity of our whole trading system is dependent on keeping this information secure . ... People have got somewhy revealedThe the ’splainingSEC initial sooner, didn’t hackto or do.” explainwas which not individualsmay disclosurehave been cameor affected. companiestwo monthsThe afterdog saida government deficiencies watch-in the corporatethe system, filing and systemthe infor-put mationThe agencyit contains,also didn’tat risk. disclose any information about who might have carried out the breach. A hack by Chinese or Russian actors can’t be ruled out, experts say. by tonto comesthe Thethe SEC creditin agency’shacka just Chairman statementstunningagencytwo was weeks website. disclosedJay Equifax postedClay- afterIt revealed a cyberattack sensitivetion appear Claytonthatof 143 Tuesday exposed personal millionis scheduledbeforethe informa-people. highlythe to ner Senate Democraticthe day of committee,that Virginia, Bankingthe Sen. disclosuresa Committee.said memberMark Thurs- War- by of the “that nesses efforts SEC governmentneedto and protectto Equifaxstep our and up show mostbusi- their sensitivemercial information.”personal and com-

PABLO MARTINEZ MONSIVAIS / ASSOCIATED PRESS Securities and Exchange Commission Chairman Jay Clayton revealed the hack in a statement on the SEC’s website.