The U.S. Securities and Exchange Commission (SEC) has recently revealed that its X account was compromised in a SIM swap attack. This attack involved the unauthorized party gaining control of the SEC's cell phone number associated with the account, leading to a fake announcement being posted about the approval of spot bitcoin exchange-traded funds (ETFs).
SEC Acknowledges Being Targeted in SIM Swap Attack
The SEC provided an update on Monday regarding the unauthorized access of its @SECGov account on the social media platform X. The attack, which took place on January 9, involved the use of the SEC's X account to post a false message claiming that the agency had approved spot bitcoin ETFs. It is important to note that the agency had not approved any spot bitcoin ETFs at that time.
The securities regulator provided further details, stating that two days after the incident, in consultation with the SEC's telecom carrier, it was determined that the unauthorized party had gained control of the SEC's cell phone number through a SIM swap attack.
The SEC explained that once in control of the phone number, the unauthorized party reset the password for the @SECGov account. However, the regulator emphasized that access to the phone number was obtained via the telecom carrier and not through SEC systems. The SEC's staff have found no evidence to suggest that the unauthorized party gained access to SEC systems, data, devices, or other social media accounts.
In July 2023, multi-factor authentication (MFA) had been enabled on the @SECGov X account. However, due to issues accessing the account, X Support disabled MFA at the staff's request. The SEC reinstated MFA after the account was compromised on January 9. Currently, MFA is enabled for all SEC social media accounts that offer this feature.
The SEC's staff is actively collaborating 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 own Division of Enforcement.
The SEC highlighted that the ongoing investigation aims to determine how the unauthorized party persuaded the carrier to change the SIM card associated with the account and how they knew which phone number was linked to the account.
A significant number of SIM swap attacks have targeted cryptocurrency investors. In addition to the SEC, other notable victims include Vitalik Buterin, the co-founder of Ethereum. To learn how to protect yourself and your crypto assets from SIM swap attacks, refer to our comprehensive guide.
We value your opinion: What do you think about the SEC's SIM swap incident? Share your thoughts in the comments section below.
Frequently Asked Questions
How to Open a Precious Metal IRA?
It is important to decide if you would like an Individual Retirement Account (IRA). To open the account, complete Form 8606. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form must be submitted within 60 days of the account opening. You can then start investing once you have this completed. You might also be able to contribute directly from the paycheck through payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. The process for an ordinary IRA will not be affected.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS requires that you are at least 18 years old and have earned an income. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. You must also contribute regularly. These rules apply to contributions made directly or through employer sponsorship.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. But, you'll only be able to purchase physical bullion. This means that you will not be allowed to trade shares or bonds.
Your precious metals IRA may also be used to invest in precious-metal companies. This option is available from some IRA providers.
However, investing in precious metals via an IRA has two serious drawbacks. First, they are not as liquid or as easy to sell as stocks and 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.
Can the government take your gold
Because you have it, the government can't take it. You earned it through hard work. It belongs to your. But, this rule is not universal. You could lose your gold if convicted of fraud against a federal government agency. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
How is gold taxed within a Roth IRA
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
These accounts are subject to different rules depending on where you live. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . You can delay until April 1st in Massachusetts. And in New York, you have until age 70 1/2 . To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
Can I keep a Gold ETF in a Roth IRA
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
Traditional IRAs allow for contributions from both employees and employers. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
Also available is an Individual Retirement Annuity. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs will not be taxed
Who has the gold in a IRA gold?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
You must have gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
It is a good idea to consult an accountant or financial planner to learn more about your options.
Which precious metals are best to invest in retirement?
Silver and gold are two of the most valuable precious metals. Both are easy to sell and can be bought easily. They are a great way to diversify your portfolio.
Gold: Gold is one of man's oldest forms of currency. It's also very safe and stable. This makes it a good option to preserve wealth in uncertain times.
Silver: Investors have always loved silver. It's a great option for those who want stability. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. It is however more expensive than its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It is also used in jewelry-making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also less expensive. It's a popular choice for investors who want to add precious metals into their portfolios.
Statistics
- (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
