SEC Admits SIM Swap Attack Compromised Account

SEC Provides Update on Unauthorized Access

The U.S. Securities and Exchange Commission (SEC) recently provided an update regarding the unauthorized access of its @SECGov account on social media platform X. The attack occurred on January 9th, when the SEC's X account was used to post a fraudulent message claiming the agency had approved spot bitcoin exchange-traded funds (ETFs). However, it is important to note that the agency had not actually approved spot bitcoin ETFs at that time.

Details of the Attack

According to the securities regulator, two days after the incident, it was discovered that the unauthorized party had gained control of the SEC cell phone number associated with the account through a SIM swap attack. The attacker then proceeded to reset the password for the @SECGov account. It is worth mentioning that the access to the phone number was obtained via the telecom carrier and not through SEC systems. The SEC has confirmed that there is no evidence suggesting that the unauthorized party gained access to SEC systems, data, devices, or any other social media accounts.

Multi-Factor Authentication (MFA) Disabled

The SEC revealed that while multi-factor authentication (MFA) had previously been enabled on the @SECGov X account, it was disabled by X Support in July 2023 due to difficulties accessing the account. MFA was only reenabled after the account was compromised on January 9th. Currently, MFA is enabled for all SEC social media accounts that offer this security feature.

Coordination with Law Enforcement

The SEC is actively coordinating with various law enforcement and federal oversight entities, including the Federal Bureau of Investigation (FBI), the Department of Homeland Security (DHS), the Commodity Futures Trading Commission (CFTC), the Department of Justice (DOJ), and the SEC's Division of Enforcement. The purpose of this collaboration is to investigate the SIM swap attack and determine how the unauthorized party was able to convince the carrier to change the SIM for the account and identify the associated phone number.

SIM Swap Attacks on the Rise

SIM swap attacks are increasingly targeting cryptocurrency investors. In addition to the SEC, Ethereum co-founder Vitalik Buterin is among the notable victims of such attacks. It is crucial for individuals to take precautions to protect themselves from SIM swap attacks. Our comprehensive guide provides valuable insights on how to prevent falling victim to this type of attack.

What are your thoughts on the SEC's SIM swap attack? Share your opinions in the comments section below.

Frequently Asked Questions

What precious metals could you invest in to retire?

Gold and silver are the best precious metal investments. They're both easy to buy and sell and have been around forever. You should add them to your portfolio if you are looking to diversify.

Gold: The oldest form of currency known to man is gold. It is very stable and secure. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.

Silver: Investors have always loved silver. It's a great option for those who want stability. Silver tends to move up, not down, unlike gold.

Platinum: A new form of precious metal, platinum is growing in popularity. It's resistant to corrosion and durable, similar to gold and silver. It's also more expensive than the other two.

Rhodium: Rhodium can be used in catalytic convertors. It's also used in jewelry making. It is also very affordable in comparison to other types.

Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also less expensive. It is a preferred choice among investors who are looking to add precious materials to their portfolios.

What's the advantage of a Gold IRA?

There are many benefits to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You control how much money goes into each account and when it's withdrawn.

You have the option of rolling over funds from other retirement account into a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.

The best part is that you don't need special skills to invest in gold IRAs. They're available at most banks and brokerage firms. Withdrawals can be made instantly without the need to pay fees or penalties.

There are, however, some drawbacks. Gold is historically volatile. It's important to understand the reasons you're considering investing in gold. Are you seeking safety or growth? Is it for insurance purposes or a long-term strategy? Only once you know, that will you be able to make an informed decision.

If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. A single ounce will not be sufficient to meet all your requirements. Depending on your plans for using your gold, you may need multiple ounces.

You don’t necessarily need a lot if you’re looking to sell your gold. Even one ounce is enough. However, you will not be able buy any other items with those funds.

Do you need to open a Precious Metal IRA

Precious metals are not insured. This is the most important fact to know before you open an IRA account. If you lose money in your investment, nothing can be done to recover it. This includes investments that have been damaged by fire, flooding, theft, and so on.

This type of loss can be avoided by investing in physical silver and gold coins. These items have been around for thousands of years and represent real value that cannot be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.

Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.

Do not open an account unless you're ready to retire. Don't forget the future!

What does a gold IRA look like?

The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.

You can purchase gold bullion coins in physical form at any moment. To invest in gold, you don't need to wait for retirement.

The beauty of owning gold as an IRA is you can hold on to it forever. When you die, your gold assets won't be subjected to taxes.

Your gold will be passed on to your heirs, without you having to pay capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.

You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as a mediator between you, the IRS.

Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual returns.

Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit required is $1,000 A higher interest rate will be offered if you invest more.

Taxes will be charged on gold you have withdrawn from an IRA. You will be liable for income taxes and penalties if you take the entire amount.

If you only take out a very small percentage of your income, you may not need to pay tax. There are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.

It's best not to take out more 50% of your total IRA investments each year. You'll be facing severe financial consequences if you do.

What precious metal is best for investing?

The answer to this question depends on how much risk you are willing to take and what type of return you want. While gold is considered a safe investment option, it can also be a risky choice. For example, if you need a quick profit, gold may not be for you. If you have time and patience, you should consider investing in silver instead.

If you don’t desire to become rich quickly, gold may be your best option. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.

Can I keep a Gold ETF in a Roth IRA

While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).

A traditional IRA allows for contributions from both employer and employee. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.

An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.

Also available is an Individual Retirement Annuity. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs don't have to be taxable

Can I have physical gold in my IRA

Gold is money. Not just paper currency. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.

Today, Americans prefer precious metals like silver and gold to stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.

Another reason is that gold has historically outperformed other assets in financial panic periods. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. During turbulent market conditions gold was one of few assets that outperformed stock prices.

Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. You still have your shares even if your stock portfolio falls. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.

Gold provides liquidity. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. Gold is liquid and therefore it makes sense to purchase small amounts. This allows you take advantage of the short-term fluctuations that occur in the gold markets.

Statistics

If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
(Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)

External Links

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The History of Gold as an Asset

From the beginning of history, gold was a popular currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. Due to its value, it was also internationally traded. There was no international standard for measuring gold at that time, so different weights and measures were used around the world. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.

The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. The result was a decrease in foreign currency demand, which led to an increase in their price. The price of gold dropped because the United States began to mint large quantities of gold coins. The U.S. government was unable to pay its debts due to too much money being in circulation. They decided to return some of the gold they had left to Europe.

Many European countries didn't trust the U.S. dollars and started to accept gold for payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The gold price has gone up significantly in the years since. Even though gold's price fluctuates, it is still one of the most secure investments you could make.

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By: Kevin Helms
Title: SEC Admits SIM Swap Attack Compromised Account
Sourced From: news.bitcoin.com/sec-got-sim-swapped-how-hacker-gained-control-of-secs-x-account/
Published Date: Wed, 24 Jan 2024 03:30:54 +0000