The rise of digital fraud and financial cybercrime has prompted the Securities and Exchange Commission (SEC) to take decisive action. The agency announced the formation of the Cyber and Emerging Technologies Unit (CETU), a specialized task force designed to crack down on cyber-related misconduct and protect retail investors from evolving digital threats.

“The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies,” said Acting Chairman Mark Uyeda.

New Exec Appointed to Lead the New Unit

Laura D’Allaird will lead the new division, which replaces the former Crypto Assets and Cyber Unit. The CETU consists of approximately 30 fraud specialists and attorneys spread across SEC offices.

“Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Importantly, the new unit will also allow the SEC to deploy enforcement resources judiciously,” added Uyeda.

Its mission includes identifying and eliminating cyber threats that exploit emerging technologies such as artificial intelligence and blockchain. According to Acting Chairman Mark T. Uyeda, the unit will play a critical role in enforcing regulations while fostering market confidence.

The CETU’s enforcement priorities span several aspects of cyber-related misconduct, including fraud involving artificial intelligence and machine learning, the use of social media, the dark web, and fake websites for fraudulent schemes.

SEC Strengthens Enforcement as Digital Threats Evolve

Hacking attempts to access nonpublic financial information, unauthorized takeovers of retail brokerage accounts, fraud in blockchain technology and crypto assets, compliance failures in cybersecurity regulations among regulated entities, and false or misleading disclosures about cybersecurity risks from public companies

The rapid adoption of emerging financial technologies has presented regulators with a challenging landscape. With fraudsters leveraging advanced digital tools, the SEC’s new unit aims to stay ahead by utilizing its staff’s substantial fintech and cybersecurity expertise.

By prioritizing enforcement in these critical areas, the agency seeks to maintain investor trust and strengthen market integrity. With CETU’s launch, the SEC signals a renewed focus on digital fraud enforcement, ensuring that innovation in finance does not come at the expense of investor protection.