Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: August 4, 2020
The Firm
201-896-4100 info@sh-law.comThe Securities and Exchange Commission (SEC) is warning its registrants that they may be the target of sophisticated ransomware attacks. “The Office of Compliance Inspections and Examinations (OCIE) has observed an apparent increase in sophistication of ransomware attacks on SEC registrants, which include broker-dealers, investment advisers, and investment companies, and also ransomware attacks impacting service providers to registrants,” the Risk Alert states.
Ransomware attacks have become more common and harder to detect in recent years. Most ransomware attacks gain access to a company’s computer systems via an email attachment that appears legitimate, like an invoice or electronic fax. Once the employee opens it, the malware begins encrypting files and folders on local drives, any attached drives, backup drives, and potentially other computers on the same network. The attackers then demand a ransom payment in exchange for a decryption key.
On July 10, 2020, OCIE issued an alert informing registrants that one or more threat actors have orchestrated phishing and other campaigns designed to penetrate financial institution networks to, among other objectives, access internal resources and deploy ransomware. OCIE has also observed an apparent increase in sophistication of ransomware attacks on SEC registrants in which the perpetrators typically demand compensation (ransom) to maintain the integrity and/or confidentiality of customer data or for the return of control over registrant systems. In addition, OCIE has observed ransomware attacks impacting service providers to registrants.
In light of the increased risk, OCIE encourages registrants, as well as other financial services market participants, to monitor the cybersecurity alerts published by the Department of Homeland Security Cybersecurity and Infrastructure Security Agency (CISA), including the updated alert published on June 30, 2020, relating to recent ransomware attacks. It also encourages registrants to share this information with their third-party service providers, particularly with those that maintain client assets and records for registrants.
To help entities thwart ransomware attacks, OCIE noted that it has observed registrants using the following measures to enhance their preparedness:
Broker-dealers, investment advisers, and investment companies should heed the SEC’s warning. Even if the failure to do so does not lead to a costly data breach, it could still result in a costly SEC enforcement action. Cybersecurity has been a key examination priority for OCIE for many years, and the SEC has emphasized that information security is a key risk area on which registrants should focus.
If you have any questions or if you would like to discuss the matter further, please contact me, Maryam Meseha, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!