The Securities and Exchange Commission (SEC) has recently announced the establishment of a new division focused on cybersecurity and emerging technologies called the Cyber and Emerging Technologies Unit (CETU). Led by Laura d’ALARD, the new unit will replace the existing unit responsible for crypto assets and cybersecurity, with a key focus on combating fraud in the digital assets space and protecting retail investors.
CETU will consist of approximately 30 specialists in fraud prevention and attorneys from various SEC offices. Acting chairman Mark T. Uyed indicated that the unit will collaborate with the SEC’s cryptocurrency working group, headed by Commissioner Hester Pierce. The main objective of CETU is to identify individuals using technologies to harm investors and enhance capital formation and market efficiency.
The unit will investigate various key areas, including fraud utilizing artificial intelligence and machine learning, manipulation through social media and dark web channels, insider information theft through cyber attacks, retail broker account breaches, and cryptocurrency fraud. Additionally, CETU will monitor compliance with cybersecurity standards and detect cases of fraudulent information disclosure by public companies.
SEC highlights that the creation of CETU will help in more effectively allocating resources amid the rise in criminal activities in the digital realm. The new unit is expected to heighten investor protection and prevent abuses in the rapidly evolving financial technology market.