The U.S. Securities and Exchange Commission (SEC) has revealed that its social media account, @SECGov, was compromised in a SIM swap attack. The unauthorized party gained control of the SEC's cell phone number associated with the account and used it to post a false announcement about the approval of spot bitcoin exchange-traded funds (ETFs).
Unauthorized Access and False Announcement
The incident took place on January 9, and the SEC provided an update on the situation. The agency clarified that it had not approved spot bitcoin ETFs at the time of the attack. The unauthorized message posted on the @SECGov account falsely claimed that the agency had given its approval.
Details of the Attack
The SEC explained that two days after the incident, it discovered that the unauthorized party had gained control of its cell phone number through a SIM swap attack. This type of attack involves the unauthorized party convincing the telecom carrier to transfer the phone number to a device under their control.
Once the unauthorized party had control of the phone number, they reset the password for the @SECGov account. However, the SEC clarified that this access was gained through the telecom carrier and not through its own systems. The agency stated that there was no evidence of the unauthorized party accessing SEC systems, data, devices, or other social media accounts.
Multi-Factor Authentication Disabled
The SEC also mentioned that multi-factor authentication (MFA) had been enabled on the @SECGov account but was disabled in July 2023 due to access issues. The disabling of MFA was done at the request of SEC staff. After the account was compromised on January 9, MFA was re-enabled. Currently, all SEC social media accounts that offer MFA have it enabled.
Coordination with Law Enforcement
The SEC's staff is actively working with various law enforcement and federal oversight entities to investigate the incident. These include the FBI, DHS, CFTC, DOJ, and the SEC's own Division of Enforcement. The SEC highlighted that the investigation is looking into how the unauthorized party persuaded the carrier to change the SIM for the account and how they knew which phone number was associated with it.
Increasing Number of SIM Swap Attacks
SIM swap attacks have become a significant concern for cryptocurrency investors. The SEC is not the only high-profile victim of such attacks, as Ethereum co-founder Vitalik Buterin has also been targeted. It is crucial for individuals to take steps to protect themselves against SIM swap attacks. Our guide provides valuable information on how to prevent falling victim to such attacks.
What are your thoughts on the SEC's SIM swap attack? Share your opinions in the comments section below.
Frequently Asked Questions
What are the benefits of having a gold IRA?
The best way to save money for retirement is to place it in an Individual Retirement Account. It's tax-deferred until you withdraw it. You can decide how much money you withdraw each year. There are many types of IRAs. Some are better suited for people who want to save for college expenses. Others are designed for investors looking for higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. These earnings don't get taxed if they withdraw funds. This account may be worth considering if you are looking to retire earlier.
Because you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This means that you don't need to worry about making monthly deposits. To make sure you don't miss any payments, you can also set up direct deductions.
Finally, the gold investment is among the most reliable. Its value is stable because it's not tied with any one country. Even during economic turmoil, gold prices tend to stay relatively stable. Therefore, gold is often considered a good investment to protect your savings against inflation.
Is gold a good investment IRA option?
If you are looking for a way to save money, gold is a great investment. It can be used to diversify your portfolio. But there is more to gold than meets the eye.
It has been used throughout the history of currency and remains a popular payment method. It's sometimes called “the world's oldest money”.
Gold is not created by governments, but it is extracted from the earth. It's hard to find and very rare, making it extremely valuable.
The price of gold fluctuates based on supply and demand. The economy that is strong tends to be more affluent, which means there are less gold miners. Gold's value rises as a result.
On the flipside, people may save cash rather than spend it when the economy slows. This causes more gold to be produced, which lowers its value.
This is why gold investment makes sense for both individuals and businesses. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
You'll also earn interest on your investments, which helps you grow your wealth. You won't lose your money if gold prices drop.
How to Open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. You must complete Form 8606 to open an account. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. This form should be completed within 60 days after opening the account. After this, you are ready to start investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. The process for an ordinary IRA will not be affected.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS states that you must be at least 18 and have earned income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Contributions must be made regularly. These rules apply to contributions made directly or through employer sponsorship.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you won't be able purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
Your precious metals IRA may also be used to invest in precious-metal companies. This option may be offered by some IRA providers.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. Second, they are not able to generate dividends as stocks and bonds. Therefore, you will lose money over time and not gain it.
Should You Invest in gold for Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. Consider investing in both.
In addition to being a safe investment, gold also offers potential returns. Retirement investors will find gold a worthy investment.
Most investments have fixed returns, but gold's volatility is what makes it unique. Its value fluctuates over time.
This does not mean you shouldn’t invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another benefit to gold is its tangible value. Unlike stocks and bonds, gold is easier to store. It is also easily portable.
You can always access gold as long your place it safe. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. When the stock market drops, gold usually rises instead.
You can also sell gold anytime you like by investing in it. You can also liquidate your gold position at any time you need cash, just like stocks. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
Also, don't buy too much at once. Start small, buying only a few ounces. Add more as you're able.
Keep in mind that the goal is not to quickly become wealthy. It is to create enough wealth that you no longer have to depend on Social Security.
And while gold might not be the best investment for everyone, it could be a great supplement to any retirement plan.
Is buying gold a good way to save money for retirement?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
Physical bullion is the most popular method of investing in gold. There are other ways to invest gold. It is best to research all options and make informed decisions based on your goals.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you require cash flow, gold stocks can work well.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
Statistics
- 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 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)
- (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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
finance.yahoo.com
investopedia.com
irs.gov
bbb.org
How To
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Because of its intrinsic value, it was also widely traded. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This caused a drop in foreign currency demand which resulted in an increase of their prices. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. They decided to sell some excess gold to Europe in order to do this.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The value of gold has significantly increased since then. Although the price of gold fluctuates today, it remains one of your most safe investments.
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By: Kevin Helms
Title: SEC Admits SIM Swap Attack on Social Media 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
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