Investors on edge after hacker exploits phone number to spread false news on X (formerly Twitter).
The Securities and Exchange Commission (SEC), the U.S.’s top financial watchdog, is facing serious questions about its cybersecurity after a hacker seized control of its X account and posted a fake announcement about Bitcoin ETF approval. This incident sent shockwaves through the crypto market, highlighting concerning vulnerabilities in the SEC’s security protocols.
How the Hack Happened:
X’s Safety team confirmed that the compromise wasn’t due to a breach of their systems, but rather an unidentified individual gaining access to a phone number associated with the @SECGov account. This suggests the SEC neglected basic security measures like two-factor authentication (2FA), which X explicitly encourages all users to enable.
Fallout and Concerns:
The false tweet sent Bitcoin prices surging before crashing back down upon clarification from SEC Chair Gary Gensler. This incident exposes alarming weaknesses in the SEC’s security practices, particularly concerning for an agency responsible for regulating the world’s largest financial markets.
Senators J.D. Vance and Thom Tillis swiftly demanded answers, writing a letter to the SEC calling the security lapse “unacceptable” and demanding a thorough explanation. Additionally, X emphasized the absence of two-factor authentication on the compromised account, urging all users to activate this crucial security measure.
The ramifications of this hack extend beyond market volatility. It erodes trust in the SEC’s ability to safeguard sensitive information and raises concerns about potential manipulation of financial markets through social media hacking.