Data Security & Fraud Prevention

Latest Headlines

Latest Headlines

Trade monitoring technology for spotting fraud also IDs HFT front-running

When proprietary equities trading firm Trillium Management LLC first began building a market monitoring tool several years ago, the goal was to spot illegal practices like the "layering" that several of its traders had been charged with engaging in back in 2010. But with the growth of high-frequency trading in U.S. equities markets, the firm found the tools could also provide a detailed look at how other market players can use sophisticated routing technology to jump ahead of orders.

FBI finds no evidence JPMorgan hacker hit other banks

The cyberattack against JPMorgan Chase & Co. that came to light last week is looking less likely to be part of a broader politically motivated attack against the banking industry. Initial reports...

JPMorgan and other banks hit by cyberattack

The FBI and the Secret Service are investigating cyberattacks against several American financial institutions, including JPMorgan Chase & Co. Reports vary on many of the details, but the attacks were first discovered earlier this month and may have resulted in the theft of gigabytes of sensitive data.

Hedge funds look to codify cybersecurity preparedness as regulators step up scrutiny

The Securities and Exchange Commission held a round table March 26 to examine cyber security threats to the industry. The following month, the SEC's Office of Compliance Inspections and Examinations issued a risk alert, essentially warning the finance community about the importance of cybersecurity preparedness and outlining the agency's plans to assess the industry's preparedness.

Four years after sanctions for layering, Trillium markets tool for detecting it

Back in 2010, the Financial Industry Regulatory Authority informed Trillium Management LLC that it had uncovered trading patterns among some of the firm's traders that were consistent with "layering," or creating a false appearance of trading activity in order to drive a stock price. After agreeing to fines and sanctions for the employees involved in the deceptive practices, Trillium also agreed to implement a system for better control and monitoring of market manipulation.  

Global banking group backs proposed FX market changes

The list of proposed changes to prevent manipulation of foreign exchange benchmarks received backing this week from the Global Financial Markets Association, an international trade association whose members represent 90 percent of the foreign exchange market. Industry participants had until Aug. 12 to comment on 15 proposed measures such as widening the fixing window and increasing the number of sources of transaction data during the fixing window.

Former Citadel quant pleaded guilty to theft of HFT signals

A former Citadel quantitative engineer has pleaded guilty to stealing high-frequency trading signals from Citadel and to a similar theft from a previous employer in New Jersey.

European Central Bank website hacked, 20,000 emails stolen

The European Central Bank announced that its Web site has been hacked and personal contact information including email addresses and some addresses and phone number has been stolen. The ECB only found out about the hack when it received an anonymous email seeking financial compensation for the stolen data.  

Russian 'digital bomb' may have been trying to copy Nasdaq, not destroy it

Back in 2010, a piece of malware that investigators characterized as a digital weapon was discovered in Nasdaq. The malware was detected by both Nasdaq and the FBI before it detonated, but a new detailed investigative article by  Bloomberg Businessweek  sheds light on the multiagency investigation into the sophisticated hack and the motives behind it.

FSB proposes changes for preventing manipulation of FX benchmarks

The Financial Stability Board, a global regulator, has published proposed changes to the way top currency benchmarks are calculated in response to allegations of benchmark manipulation. Widening the amount of time it takes to calculate the benchmark and adopting alternative forms of benchmark calculation are among the top suggestions the global regulator has proposed for public comment.