SEC Files Enforcement Action against Investment Adviser for Failing to Guard against Hacker (with Lofchie Comment)

According to the press release, the staff is investigating whether the IA's compliance and security policies and procedures were reasonably designed to protect against recent instances of attempted and actual theft of client assets. One such incident involved an attempt by an apparent hacker to cause the IA to wire client funds to an outside account.

Lofchie Comment: You can't really tell what's going on from the SEC release, but I did think it was interesting that the adviser was faulted for having insufficient protections against a hacker (though the SEC release made this seem to be more of an inside job than the work of a hacker).

Click here to view notice in full (links externally to SEC website).