SEC launches enforcement unit with a focus on combating malicious cyber activity, AI fraud

The Securities and Exchange Commission has launched a unit focused on cyber misconduct including malicious hacks aimed at brokers and fraud enabled by artificial intelligence, replacing a cryptocurrency-focused group that was launched during President Trump’s first term.

The Cyber and Emerging Technologies Unit will “focus on combatting cyber-related misconduct and to protect retail investors from bad actors in the emerging technologies space,” according to a Thursday press release from the SEC.

The CETU aims to “utilize the staff’s substantial...