Stock markets, regardless of where they’re located, tend to be the target of unscrupulous agents who illegally take advantage of speculation to line their pockets with ill-gotten gains.
When the internet took over as a means of business communication, hackers started targeting companies more frequently to gain inside information that allows them to short sell and manipulate stocks in other ways to make a quick profit. Protecting your company against hackers helps to prevent this and other problems from affecting your business.
Hacking for Insider Trading
The U.S. Department of Justice and Securities and Exchange Commission revealed that a group of at least 30 people have been manipulating the stock market, making more than $100 million of profit through illegal insider trading. The scam was fairly simple, involving a pair of hackers, Ivan Turchynov and Oleksandr Ieremenko, who broke into data vaults of two or more newswire services to gain early access to announcements that would have a significant effect on a company’s stock price.
Federal officials stated that “the defendants made a combined $100 million in illegal profits,” through a group that included “two Ukrainian men who are believed to be the hackers, plus 30 other people from the U.S. and elsewhere who made the stock trades.”
The pair of hackers would upload stolen information to a secret location on the internet, where it was shared with traders from France, Malta, Cyprus, Russia and Ukraine, in addition to the states of New York, Pennsylvania and Georgia. One particular case that the SEC detailed took place on May 1st, 2013, in which a press release was stolen 10 minutes after it was uploaded to the new service, revealing that the company wasn’t making as much profit as expected. After only 36 minutes of trading, the group managed to make $511,000 through illegal trades.
Security Flaws Lead to Fiduciary Disaster
PR Newswire was confirmed as the source of the leak after they cooperated with the U.S. government to bring justice to the fraudsters. While the exact method that they were hacked remains a secret, it’s clear that this and other newswires involved didn’t protect their client’s information through firewalls, anti-virus and systems that protect against spyware and other malware.
The information transferred from these businesses to the newswire wasn’t adequately secured through basic encryption, which would have rendered the info unusable for fraudulent purposes. These and other security steps prevent the vast majority of hacks from taking place.
If you’re the least bit doubtful about the effectiveness of your own cybersecurity, contacting a managed IT and security expert helps to make sure that your business isn’t exposed to the whims of hackers. Companies such as Dynamix Solutions provide a full security suite, which allows you to focus on running your business rather than fighting off attacks from malicious hacks.
How Secure is Your Data?
Today, it’s extremely important for companies to ensure that their data is secure. Considering that most people lack the knowledge and time to properly ensure the safety of a company’s data, it’s wise to leave this task to professionals.
At Dynamix Solutions, we help companies small and large protect their digital information from getting into the wrong hands. We can handle all of the technical set up and back up that you need to confidently keep your business safe, while you can focus on the business itself.