Compliance » How Hackers Become The "Insider" In Insider Trading

How Hackers Become The "Insider" In Insider Trading


June 24, 2015

Reuters reports that the SEC is questioning eight companies about possible security breaches that allowed hackers to get information about such matters as pending mergers and contracts, for what could be considered a new kind of insider trading. The inquiry is said to have been precipitated by a report fromFireEye Inc., a security company. According FireEye, numerous hack attempts, primarily in the heathcare and biotech fields, have come from a single source of exceptionally competent technicians who have good command of English and understand how financial markets work. In some cases they were familiar enough with company business to insinuate themselves into detailed email strings in order to garner information, including credentials they could then use to get additional information.

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