DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

Opportunities Exist for SEC to Improve Its Controls over Financial Systems and Data – GAO

Posted on April 28, 2016 by Dissent

From a new GAO report:

The Securities and Exchange Commission (SEC) improved its information security by addressing weaknesses previously identified by GAO, including separating the user production network from the internal management network. However, weaknesses continue to limit the effectiveness of other security controls. In particular:

While SEC had issued policies and implemented controls based on those policies, it did not consistently protect access to its systems. Organizations should design and implement controls to prevent, limit, and detect unauthorized access to computer resources. The commission did not consistently protect its network from possible intrusions, identify and authenticate users, authorize access to resources, audit and monitor actions taken on its systems and network, and restrict physical access to sensitive assets.

The commission did not consistently manage the configuration of its systems. Configuration management includes ensuring that hardware and software are configured with appropriate security features and that changes are systematically controlled. However, SEC did not maintain and monitor official configuration baselines for its financial systems and general support system.

The commission did not always appropriately separate incompatible duties. Separation of duties involves dividing responsibilities so that a single individual does not control all critical stages of a process. However, SEC did not adequately separate duties among its three computing environments.

While SEC had developed contingency and disaster recovery plans for its information systems, those plans were not fully reviewed, completed, or up-to-date. Contingency and disaster recovery planning are essential to resuming operations in the event of a disruption or disaster.

These weaknesses existed in part because SEC had not fully implemented an organization-wide information security program, as called for by federal law and guidance. In particular, the commission had not (1) consistently reviewed and updated its information security policies in a timely manner, (2) completely documented plans of action to address weaknesses, (3) documented a physical inventory of its systems and applications, and (4) fully implemented a program to continuously monitor the security of its systems and networks.

Finally, of 20 weaknesses previously identified by GAO that remained unresolved as of September 30, 2014, SEC had resolved 5 and made progress in addressing the other 15 as of September 30, 2015. Two resolved weaknesses were important to improving SEC security.

Collectively, these weaknesses increase the risk that SEC’s systems could be compromised, jeopardizing the confidentiality, integrity, and availability of sensitive financial information. While not constituting material weaknesses or significant deficiencies, they warrant SEC management’s attention.

What GAO Recommends

In addition to the 15 prior recommendations that have not been fully implemented, GAO is recommending that SEC take 6 additional actions to more fully implement its information security program. In a separate report with limited distribution, GAO recommended SEC take 30 actions to address newly identified control weaknesses. SEC concurred with GAO’s recommendations.

Related:

INFORMATION SECURITY: Opportunities Exist for SEC to Improve Its Controls over Financial Systems and Data
GAO-16-493: Published: Apr 28, 2016. Publicly Released: Apr 28, 2016.
Access full report (26 pp., pdf)

Category: Commentaries and AnalysesGovernment Sector

Post navigation

← Whistle-blowing hacker to become founding member of new political party in Latvia
Goldcorp claims that there was an extortion attempt →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Washington Post investigating cyberattack on journalists, WSJ reports
  • Resource: State Data Breach Notification Laws – June 2025
  • WestJet investigates cyberattack disrupting internal systems
  • Plastic surgeons often store nude photos of patients with their identity information. When would we call that “negligent?”
  • India: Servers of two city hospitals hacked; police register FIR
  • Ph: Coop Hospital confirms probe into reported cyberattack
  • Slapped wrists for Financial Conduct Authority staff who emailed work data home
  • School Districts Unaware BoardDocs Software Published Their Private Files
  • A guilty plea in the PowerSchool case still leaves unanswered questions
  • Brussels Parliament hit by cyber-attack

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • Vermont signs Kids Code into law, faces legal challenges
  • Data Categories and Surveillance Pricing: Ferguson’s Nuanced Approach to Privacy Innovation
  • Anne Wojcicki Wins Bidding for 23andMe
  • Would you — or wouldn’t you?
  • New York passes a bill to prevent AI-fueled disasters
  • Synthetic Data and the Illusion of Privacy: Legal Risks of Using De-Identified AI Training Sets
  • States sue to block the sale of genetic data collected by DNA testing company 23andMe

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.