SEC Cyber Hack Probe

SolarWinds Inc. ($SWI@US) develops software for businesses, including large, publicly traded corporations, to help manage their networks, systems, and information technology infrastructure. In early 2020, Russian hackers broke into the Texas-based company’s systems and added malicious code into the company's software system. Now, an SEC investigation into the hacking operation has dozens of corporate executives fearful information unearthed in the expanding probe will expose them to liability. The SEC is asking companies to turn over records into any other data breach or ransomware attack dating back to October 2019 if they downloaded a related software update from SolarWinds. Though the SEC issued guidance a decade ago calling for companies to disclose hacks that could be material, most admissions have been vague. Cyberattacks have grown in frequency and impact, prompting deep concern in the White House over the last year. U.S. officials have faulted companies for failing to disclose such events, arguing that it conceals the extent of the problem from shareholders, policymakers, and law enforcement looking for the worst offenders.