Hedge Fund Attacked, Much Damage Prevented

June 24, 2014 James Heinsman Hedge Fund News

Eamon Javers of CNBC reported last week about a un-precedented cyber-attack on a hedge fund which was thwarted by BAE Systems Applied Intelligence.

The report stated that the attack was complex, disrupting the company’s trading strategy and sending information about its trading to offsite computers. The report does not mention the name of the company; however it is a client of BAE Systems.

“Paul Henninger, global product director at BAE Systems Applied Intelligence, said the hack represents one of the most complex he’s seen in a new wave of attacks designed to extract business strategy information from firms in a range of industries… ‘It’s pretty amazing,’ Henninger said in an interview Wednesday from London. ‘The level of business sophistication involved as opposed to technical sophistication involved was something we had not seen before.’ He said BAE technicians in recent weeks have also spotted a cyberattack that used malware to take over a large property and casualty insurer’s underwriting system. Using the compromised system, the criminals created fake insurance policies and filed claims against them, he said.”
-statement from CNBC.

According to Javers’ report it is not known if the hedge fund reported the event to the FBI or to the SEC. It did say that BAE guessed that the cost to the firm of the attack was in the “millions.”

The attack is reminiscent of the huge attacks reported by Target during the holiday shopping season last year, which involved a giant breach in their credit card security system. This most recent attack should be just one more in many wake-up calls directed at the financial industry.

BAE Systems Applied Intelligence, CNBC, cyberattack, Eamon Javers, hedge fund,

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