SEC chair grilled on data breach

Associated Press

WASHINGTON

U.S. senators from both parties Tuesday grilled the chairman of the Securities and Exchange Commission – the agency responsible for policing Wall Street – on its handling of a 2016 data breach that was disclosed only last week.

The hack breached the SEC’s system for handling corporate filings intended for investors, known as EDGAR. That has raised concerns that the hackers may have gained advance looks at filings and engaged in insider trading.

The SEC’s disclosure also followed a much larger breach at credit reporting firm Equifax that exposed sensitive personal information belonging to 143 million Americans. Lawmakers also blasted Equifax executives for their delay in disclosing the hack, even as some executives sold shares in the company.

SEC Chairman Jay Clayton told the committee that the incident “concerns me deeply” and added that he has ordered an investigation by the agency’s inspector general. On Monday the SEC said it had created a new cyber unit that will target market manipulation, hacking and dark-web operatives.