[ISN] U.S. to Charge That Hackers Tapped Early Deal News

http://www.nasdaq.com/article/us-to-charge-that-hackers-tapped-early-deal-news-20150811-00023 By Dow Jones Business News August 11, 2015 U.S. authorities are preparing to unseal sweeping charges as early as Tuesday against a group of traders and computer hackers who allegedly schemed to get early access to press releases about mergers and acquisitions and trade on them before the deals were made public, people familiar with the matter. Federal prosecutors in Brooklyn and New Jersey plan to announce charges against more than a half dozen people with securities fraud and other charges in connection with the alleged scheme, which authorities believe netted tens of millions of dollars in illicit profits, the people familiar with the matter said. The case may be the largest of its kind, these people said, and illustrates the increasingly bridged lines between cybertheft and traditional financial crimes. The hackers allegedly infiltrated the systems of news-wire services that publish press releases about mergers and acquisitions and obtained information from statements about unannounced deals, the people familiar with the matter said. The traders would then use the information to make early trades on the deals, exploiting the small window of time between press releases being uploaded into the system and the public announcement of the deals. […]




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