Hackers Target PR Firms in $100M Insider Trading Scheme

By on August 26, 2015

A global team of stock traders and Ukrainian computer hackers allegedly stole publicly traded company press releases from Marketwired, PR Newswire and Business Wire and traded on the relevant information before it was released to the public.

“This is the story of a traditional securities fraud scheme with a twist – one that employed a contemporary approach to a conventional crime,” said Diego Rodriguez, head of the FBI’s New York office.

The US Securities and Exchange Commission (SEC) investigators reported that they discovered the accused traders in New York, Cyprus, France, Malta and Russia by employing technology that identified suspicious trading and relationships among traders.  The defendants allegedly traded on information from around 800 news releases, generating illegal profits of more than $100M in five years.

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