The Securities and Exchange Commission has released a report that calls for public companies to develop and implement internal accounting controls while taking into account the risks associated with cyber fraud.“Cyber frauds are a pervasive, significant, and growing threat to all companies, including our public companies,” SEC Chairman Jay Clayton said in a statement published Tuesday.
“Investors rely on our public issuers to put in place, monitor, and update internal accounting controls that appropriately address these threats,†he added.
The investigative report shows that nine public firms lost approximately $100M due to “business email compromises,†which involved threat actors who pretend to be vendors or company executives and use emails to lure corporate staff to transmit funds to their bank accounts.
SEC said the firms involved in the investigation operate in consumer goods, technology, real estate, machinery, financial and energy markets.
The FBI estimates BEC-related fraud has accounted for more than $5B in corporate losses since 2013, according to the report.
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