I haven’t yet turned to a life of crime, so far be it from me to criticize actual criminals’ profit-maximizing strategies. It’s easy for me to nitpick, but I’m not the one strapping on my mask and trying to earn a (dis)honest dollar every day. But have a look at this Reuters story from Tuesday.
In it, we learn that the SEC and the Secret Service are investigating a sophisticated computer hacking group known as “FIN4” that allegedly “has tried to hack into email accounts at more than 100 companies, looking for confidential information on mergers and other market-moving events. The targets include more than 60 listed companies in biotechnology and other healthcare-related fields, such as medical instruments, hospital equipment and drugs.” Apparently their plan is to harvest this information and then trade on it. Nobody knows where FIN4 is from. They could be overseas, but supposedly their English is flawless and they have a deep knowledge of how financial markets work, so maybe they’re in the United States. At one level, a little terrifying!
But this group hasn’t devised a complex, superpowered algorithm to steal information. Instead, it’s allegedly stealing information the (sort of) old fashioned way: through social engineering. The Reuters story explains that FIN4 “used fake Microsoft Outlook login pages to trick attorneys, executives and consultants into surrendering their user names and passwords.” In at least one case, “the hackers used a confidential document, containing significant information that they had already procured, to entice people discussing that matter into giving their email credentials.”
I have two main thoughts. First, sound information handling practices, and appropriate wariness among professionals using email, still go a long way toward securing confidential data within organizations. It’s often not the most technologically advanced tactics that yield the worst data breaches. Second, FIN4 has embarked on a complex money-making plan. There may be many uses of this information, but one of them seems to be trading securities in the public markets. That’s not as simple as it seems. If you’re doing that, you’re on the grid and can’t really hide. FINRA sees all of those trades and it isn’t that hard for regulators to find out who is making them. When the Consolidated Audit Trail comes online,* it will be substantially easier and faster. In the meantime, broker-dealers are obligated to identify who their customers are. If those people have electronic connections to the ones involved in the hacking, those links could be enough for the SEC to get an asset freeze before profits are siphoned overseas.
What FIN4 is allegedly doing is scary, but they haven’t yet built a criminal ATM.
- Partner
Add a comment
Archives
- January 2022
- June 2021
- March 2020
- August 2019
- March 2019
- October 2018
- July 2016
- June 2016
- May 2016
- February 2016
- November 2015
- September 2015
- July 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- July 2014
- March 2014
- July 2013
- June 2013
- April 2013
- March 2013
- October 2012
- September 2012
- August 2012
- April 2012
- March 2012
- February 2012
- January 2012
- November 2011
- September 2011
- June 2011
- May 2011
- April 2011
- February 2011
- January 2011
- December 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2006
- February 2006
Recent Posts
- Rethinking Your Cyber Insurance Needs as Your Workplace Evolves
- Data Breach Defense for Educational Institutions
- COVID-19 and the Increased Cybersecurity Risk in a Work-From-Home World
- Like Incorporating Facebook into your Website? EU Decision Raises New Issues
- Lessons Learned: Key Takeaways for Every Business from the Capital One Data Breach
- Will Quick Talks to WRAL About Privacy Issues Related to Doorbell Cameras
- About Us
- Not in My House - California to Regulate IoT Device Security
- Ninth Circuit Says You’re Going to Jail for Visiting That Website without Permission
- Ninth Circuit Interprets “Without Authorization” under the Computer Fraud and Abuse Act
Topics
- Data Security
- Data Breach
- Privacy
- Defamation
- Public Records
- Cyberattack
- FCC Matters
- Reporters Privilege
- Political Advertising
- Newsroom Subpoenas
- Shield Laws
- Internet
- Miscellaneous
- Digital Media and Data Privacy Law
- Indecency
- First Amendment
- Anti-SLAPP Statutes
- Fair Report Privilege
- Prior Restraints
- Wiretapping
- Access to Courtrooms
- Education
- FOIA
- HIPAA
- Drone Law
- Access to Court Dockets
- Access to Search Warrants
- Intrusion
- First Amendment Retaliation
- Mobile Privacy
- Newsroom Search Warrants
- About This Blog
- Disclaimer
- Services