25 February 2018
visit www.ebaday.com

US charges nine over insider trading hacking scheme

11 August 2015  |  5312 views  |  0 Computer virus

US authorities have charged nine people with hacking into business newswires to steal yet-to-be published press releases containing financial information that was used to make trades netting around $30 million in illegal profits.

Of the nine charged in indictments unsealed in Brooklyn, New York and Newark, five have been arrested on charges including wire fraud, securities fraud and money laundering conspiracy. The other four are in Ukraine and face international arrest warrants.

The Securities and Exchange Commission has laid its own charges against 32 people, alleging that the illegal profits were actually more than $100 million.

According to the indictments, as far back as February 2010 two of the men, Ivan Turchynov and Oleksandr Ieremenko, hacked into the computer networks of Marketwired, PR Newswire Association, and Business Wire.

Over the years, the hackers then stole around 150,000 press releases, focusing on upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material financial information.

At one point, one of the hackers sent an online chat message in Russian to another individual stating, "I’m hacking prnewswire.com". In another online chat, Ieremenko told Turchynov that he had compromised the log-in credentials of 15 Business Wire employees.

The information was then shared with traders, who traded ahead of more than 800 stolen releases, enabling them to pull in around $30 million in illegal profits, say authorities.

The traders paid the hackers for access to overseas servers containing the press releases, in part, on a percentage of the money made from trading. Foreign shell companies were used to share in the profits.

If found guilty, the nine could all face lengthy prison terms and heft fines.


Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Hackers infiltrating public companies to gain an edge on Wall Street

Hackers infiltrating public companies to gain an edge on Wall Street

02 December 2014  |  4784 views  |  0 comments | 2 tweets | 3 linkedin
JPMorgan data leak linked to seventh insider trading conviction

JPMorgan data leak linked to seventh insider trading conviction

13 March 2013  |  6511 views  |  0 comments | 1 tweets | 3 linkedin

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.nextgenbanking.co.ukVisit https://www.capgemini.comVisit http://info.nice.com

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
12667 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10833 views 4 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
9331 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8692 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
8636 views comments | 11 tweets | 14 linkedin

Featured job

London, UK (or flexible)

Find your next job