NEWARK, N.J. (CBSNewYork/AP) — An international web of hackers and traders was charged by U.S. authorities Tuesday with making $100 million by breaking into the computers of business newswire services, reading corporate press releases before they came out, and then trading on that information ahead of the pack on Wall Street.
Federal authorities said it was the biggest scheme of its kind ever prosecuted, and one that demonstrated yet another way in which the financial world is vulnerable to cybercrime.READ MORE: NYC Public Swimming Pools Reopen Saturday, As Heat And Humidity Expected To Return
Nine people in the U.S. and Ukraine were indicted in Brooklyn and Newark on federal criminal charges, including securities fraud, computer fraud and conspiracy. And the U.S. Securities and Exchange Commission brought related civil charges against the nine plus 23 other individuals and companies.
The case “illustrates the risks posed for our global markets by today’s sophisticated hackers,” SEC chief Mary Jo White said. “Today’s international case is unprecedented in terms of the scope of the hacking at issue, the number of traders involved, the number of securities unlawfully traded and the amount of profits generated.”