US SEC investigates SolarWinds clients over cyber breach disclosures

The SEC is investigating whether some organisations failed to disclose if they had been affected by the attack

The US Securities and Exchange Commission (SEC) has launched an investigation into the SolarWinds attack, focusing on whether some organisations did not disclose that they had been impacted by the breach.

The SEC has sent letters to a range of public issuers and investment firms to find out whether they had been a victim of last year’s hack and failed to disclose it, according to Reuters sources.

Additionally, the SEC is trying to find out whether public companies that have been victims had experienced a lapse of internal controls. It is also investigating the policies belonging to certain companies to see where they are designed to protect customer information.

Sources told the publication that if the issuers and investment firms disclose details about the breaches, they would not be hit with enforcement actions. In the US, securities law requires companies to share material information that could affect their share prices, which includes cyber breaches.

A spokesperson for SolarWinds said in a statement to IT Pro: "Our top priority since learning of this unprecedented attack by a foreign government has been working closely with our customers to understand what occurred and remedy any issues."

The company also disclosed it was "collaborating with government agencies in a transparent way”.

Related Resource

A guide to enterprise detection and response providers

The 12 providers that matter most and how they stack up

Forrester enterprise detection WPDownload now

IT Pro has contacted the SEC for comment.

SolarWinds was targeted by a cyber attack in December which saw hackers infect the networks of thousands of US companies and government networks. The company advised users to upgrade to the latest version of its Orion software to deal with the breach.

The US and UK government agreed that the Russian foreign intelligence service was behind the attack. These hackers launched a new wave of attacks last month, targeting 150 government agencies, think tanks, consultants and NGOs from 24 countries, according to Microsoft, which found that an estimated 3,000 email accounts had been targeted.

Featured Resources

Preparing for AI-enabled cyber attacks

MIT technology review insights

Download now

Cloud storage performance analysis

Storage performance and value of the IONOS cloud Compute Engine

Download now

The Forrester Wave: Top security analytics platforms

The 11 providers that matter most and how they stack up

Download now

Harness data to reinvent your organisation

Build a data strategy for the next wave of cloud innovation

Download now

Recommended

Senate report slams agencies for poor cyber security
cyber security

Senate report slams agencies for poor cyber security

3 Aug 2021
Most employees put their workplace at risk by taking cyber security shortcuts
cyber security

Most employees put their workplace at risk by taking cyber security shortcuts

27 Jul 2021
61% of organizations say improving security a top priority for 2021
cyber security

61% of organizations say improving security a top priority for 2021

29 Jun 2021
ProtectedBy.AI’s CodeLock blocks malware at source code level
software as a service (SaaS)

ProtectedBy.AI’s CodeLock blocks malware at source code level

9 Jun 2021

Most Popular

RMIT to be first Australian university to implement AWS supercomputing facility
high-performance computing (HPC)

RMIT to be first Australian university to implement AWS supercomputing facility

28 Jul 2021
Zyxel USG Flex 200 review: A timely and effective solution
Security

Zyxel USG Flex 200 review: A timely and effective solution

28 Jul 2021
Preparing for AI-enabled cyber attacks
Whitepaper

Preparing for AI-enabled cyber attacks

22 Jul 2021