SEC Launches New Unit to Combat Cyber Threats and Protect Retail Investors

The U.S. Securities and Exchange Commission (SEC) has launched a new unit, the Cyber and Emerging Technologies Unit (CETU), to address cyber-related misconduct and safeguard retail investors from emerging technology threats. The new unit replaces the Crypto Assets and Cyber Unit and is led by Laura D’Allaird, who will oversee a team of approximately 30 fraud specialists and attorneys across multiple SEC offices.

Acting Chairman Mark Uyeda expressed his confidence in D’Allaird’s leadership, stating that the new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Uyeda emphasized that the CETU will not only protect investors but also facilitate capital formation and market efficiency by fostering innovation while rooting out those who misuse it to harm investors and erode confidence in new technologies.

The newly formed unit will focus on a range of cyber-related threats impacting the financial industry. Key areas of concentration include the increasing use of artificial intelligence and machine learning in fraudulent schemes, scams perpetrated through social media, the dark web, or deceptive websites, and hacking activities aimed at acquiring material nonpublic information.

The establishment of the CETU reflects the SEC’s commitment to staying ahead of emerging threats in the rapidly evolving digital landscape. By combining expertise in cybersecurity and emerging technologies, the new unit will work to protect investors and maintain the integrity of the U.S. capital markets.