{"id":41443,"date":"2021-06-22T18:45:52","date_gmt":"2021-06-22T18:45:52","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/32391\/SEC-Probing-SolarWinds-Clients-Over-Cyber-Breach-Disclosures.html"},"modified":"2021-06-22T18:45:52","modified_gmt":"2021-06-22T18:45:52","slug":"sec-probing-solarwinds-clients-over-cyber-breach-disclosures","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/sec-probing-solarwinds-clients-over-cyber-breach-disclosures\/","title":{"rendered":"SEC Probing SolarWinds Clients Over Cyber Breach Disclosures"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.reuters.com\/resizer\/4vUgHr8kcFpnzekS7Ju29tRafiE=\/1200x628\/smart\/filters:quality(80)\/cloudfront-us-east-2.images.arcpublishing.com\/reuters\/DPAWCQ7ZLNLS3E7AERHAV4SO6Y.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p data-testid=\"paragraph-0\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">WASHINGTON, June 21 (Reuters) &#8211; The U.S. Securities and Exchange Commission (SEC) has opened a probe into last year\u2019s SolarWinds cyber breach, focusing on whether some companies failed to disclose that they had been affected by the unprecedented hack, two persons familiar with the investigation said on Monday.<\/p>\n<p data-testid=\"paragraph-1\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The SEC sent investigative letters late last week to a number of public issuers and investment firms seeking voluntary information on whether they had been victims of the hack and failed to disclose it, said the persons, speaking under the condition of anonymity to discuss confidential investigations.<\/p>\n<p data-testid=\"paragraph-2\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The agency is also seeking information on whether public companies that had been victims had experienced a lapse of internal controls, and related information on insider trading.<\/p>\n<p data-testid=\"paragraph-3\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The agency is also looking at the policies at certain companies to assess whether they are designed to protect customer information, one of the people said.<\/p>\n<p data-testid=\"paragraph-4\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The SEC\u2019s press office declined to comment.<\/p>\n<p data-testid=\"paragraph-5\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">A spokesperson for SolarWinds, which provides a range of IT software, networks and systems, said in a statement: \u201cOur 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.\u201d<\/p>\n<p data-testid=\"paragraph-6\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The company was also \u201ccollaborating with government agencies in a transparent way,\u201d the statement said.<\/p>\n<p data-testid=\"paragraph-7\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">U.S. securities law requires companies to disclose material information that could affect their share prices, including cyber breaches, although cyber security disclosure failures are still relatively new enforcement territory for the SEC.<\/p>\n<p data-testid=\"paragraph-8\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">In December, U.S. regulators found that a breach by a foreign actor of SolarWinds\u2019 software gave hackers access to data of thousands of companies and government offices that used its products. News of the hack sent SolarWinds\u2019 share price tumbling, while cyber security stocks rallied.<\/p>\n<p data-testid=\"paragraph-9\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The United States and Britain have blamed Russia\u2019s Foreign Intelligence Service (SVR), successor to the foreign spying operations of the KGB, for the hack, which compromised nine U.S. federal agencies and hundreds of U.S. private sector companies.<\/p>\n<p data-testid=\"paragraph-10\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">If the issuers and investment firms respond to the letters by disclosing details about the breaches, they would not be subject to enforcement actions related to historical failures, including internal accounting control failures, the people said.<\/p>\n<p data-testid=\"paragraph-11\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">While the letters are focused on the SolarWinds breach, the SEC may develop future policies on the impact of cyber security issues on the markets and on investors, the people said.<\/p>\n<p><span class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__default___1Xh7Yh SignOff__text___2onKdN\">Reporting by Katanga Johnson<\/span><\/p>\n<p class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">Our Standards: <a href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" target=\"_blank\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__large___1i0u1F Link__underline_default___MkI7S8\" rel=\"noopener\">The Thomson Reuters Trust Principles.<\/a><\/p>\n<p>READ MORE <a href=\"https:\/\/packetstormsecurity.com\/news\/view\/32391\/SEC-Probing-SolarWinds-Clients-Over-Cyber-Breach-Disclosures.html\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>READ MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":41444,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[277],"tags":[2224],"class_list":["post-41443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cybersecurity-blogs","tag-headlinehackergovernmentprivacyusadata-loss"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC Probing SolarWinds Clients Over Cyber Breach Disclosures 2026 | ThreatsHub 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