On March 30, 3023, the Financial Crimes Enforcement Network (FinCEN) issued a Financial Trend Analysis focusing on business email compromise (BEC) trends and patterns in the real estate sector (referred to as “RE BEC”). The report is required under Section 6206 of the Anti-Money Laundering Act of 2020 (AMLA). This section of AMLA requires FinCEN
As people across the country and world try to figure out how to protect themselves against the spread of coronavirus, hackers are working hard to spread their own viruses. Indeed, various cybersecurity firms have reported that the amount of malicious emails containing the word “coronavirus” has significantly increased since the end of January.
On November 13, 2018, Ballard Spahr lawyers presented a webinar on the SEC’s recent “Report of Investigation” into “business email compromises” affecting public companies.
As noted in our prior blog post, the Report was prompted by the SEC’s investigation into whether nine public companies violated U.S. securities laws “by failing to have sufficient accounting controls” to prevent approximately $100 million in losses as a result of business email compromises targeting their personnel. The SEC investigated whether these companies violated Sections 13(b)(2)(B)(i) and (iii) of the Securities and Exchange Act of 1934. Although declining to pursue enforcement actions against the companies, the SEC emphasized its recent cybersecurity guidance, advising public companies that “[c]ybersecurity risk management policies and procedures are key elements of enterprise-wide risk management, including as it relates to compliance with federal securities laws.” (See our prior alert and blog post regarding the Interpretive Guidance).
Continue Reading Listen to Our Webinar on “The SEC’s Special Report on Business Email Compromises: What It Means and What You Should Do”
The U.S. Securities and Exchange Commission (SEC) has joined the government chorus in sounding the alarm about the rapid rise in “business email compromises” that are victimizing organizations across industry sectors.
On October 16, 2018, the SEC released a “Report of Investigation” calling for public companies to reassess their internal accounting controls “in light of emerging risks, including risks arising from cyber-related frauds.” In particular, the report focuses on certain types of “business email compromises” (BEC), in which a bad actor uses spoofed or compromised email accounts to trick an organization’s personnel into effectuating wire transfers to financial accounts controlled by fraudsters.
Continue Reading SEC Special Report: Rampant Business Email Compromises Require Reassessment of Internal Accounting Controls