Report: Hackers penetrated Nasdaq computer network

Discussion in 'Wall St. News' started by BCE, Feb 5, 2011.

  1. BCE


    Report: Hackers penetrated Nasdaq computer network

    NEW YORK — The computer network that runs the Nasdaq Stock Market has been penetrated by hackers multiple times during the past year, according to a newspaper report.

    The Wall Street Journal reported on its website late Friday that federal investigators are trying to identify the perpetrators and their motive.

    People familiar with the investigation say the exchange's trading platform, the system which executes trades, was not compromised, according to the report.

    A person involved in the Nasdaq investigation told the newspaper that so far the perpetrators "appear to have just been looking around."

    Nasdaq officials declined to comment. A telephone message left with the FBI's office in New York was not immediately returned.

    Possible motives include financial gain, theft of trade secrets or a national security threat designed to damage the exchange, the newspaper said.

    Collecting intelligence?
    Tom Kellermann, a computer security expert at Core Security Technologies, told the Journal that financial institutions were coming under increasing attack.

    "Many sophisticated hackers don't immediately try to monetize the situation; they oftentimes do what's called local information gathering, almost like collecting intelligence, to ascertain what would be the best way in the long term to monetize their presence,'' he told the paper.

    The Secret Service initiated the probe involving New York-based Nasdaq OMX Group Inc. last year. White House officials also have been informed.

    Investigators have not yet been able to track the cyber break-ins to any specific individual or country, but people with knowledge of the case told the newspaper some evidence points to Russia.

    However, they point out that hackers could be just using Russia as a conduit.

    In 1999, a group of hackers calling itself "United Loan Gunmen" infiltrated the computer that runs the websites for Nasdaq and the American Stock Exchange.

    The hackers left a taunting message and also claimed to have briefly created for itself an e-mail account on Nasdaq's computer system, suggesting a broader breach in security.

    But at the time, Nasdaq officials said there was no evidence they manipulated financial data.
  2. If hackers can do this, it is impossible for us at home not be hacked and not know about it.
  3. Oh no!

    Now they will be able to see our incoming orders and step in front of them, or pull their orders before they get executed!

    Oh wait, they already do that because they pay for the priveledge of inside information from NASDAQ.

    Hope someone takes down the entire Nasdaq market so some real changes can be made to get back to a level playing field.
  4. you will be definitely in the radar if you are making of millions . It is much cheaper to hire hacker to get into your system to steal millions (by looking at your trade or etc) than develop their own trading strategy.
  5. hft is probably 1000x more likely to cost you money than any hacker.
  6. Don't try to divert the topic, HFT is an issue but this is not what we discussed here.

    Hacker and hacking is really a big issue this day, i doubt how many hackers are relentlessly targetting those superrich investor and trader like Soro and Buffet just to "look around" their trading account ?