27 May 2018

US charges nine over insider trading hacking scheme

11 August 2015  |  5387 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  |  4860 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  |  6592 views  |  0 comments | 1 tweets | 3 linkedin

Related company news


Related blogs

Create a blog about this story (membership required)
Visit www.vasco.com/news/mobile-firstVisit www.niceactimize.comVisit iliad-solutions.com/

Who is commenting?

Top topics

Most viewed Most shared
satelliteAnt Financial provides tech for China Ever...
29070 views comments | 3 tweets | 2 linkedin
Digital banking transformation creating new systemic risksDigital banking transformation creating ne...
8960 views comments | 18 tweets | 26 linkedin
MUFG to roll out blockchain payment network next yearMUFG to roll out blockchain payment networ...
7632 views comments | 13 tweets | 13 linkedin
There are some things you just can't do with an appThere are some things you just can't do wi...
6905 views comments | 9 tweets | 15 linkedin

Featured job

Find your next job