Feds: Hackers' Simple Scheme Earned Them $100M

They peeked at press releases before they went public
By John Johnson,  Newser Staff
Posted Aug 11, 2015 5:26 PM CDT
Feds: Hackers' Simple Scheme Earned Them $100M

It was surprisingly simple and surprisingly lucrative: Feds say a group of hackers made $100 million by getting a look at corporate press releases before they went public. The hackers tapped into three big companies that distribute such releases—Marketwire, PR Newswire, and Business Wire—and were able to make trades just before information about earnings or other big developments hit the wires, reports CNNMoney.

Nine people in the US and Ukraine face federal charges including securities fraud, computer fraud, and conspiracy. The SEC also brought civil charges against them along with 23 other individuals and companies in the US and overseas, reports AP. "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," says SEC chief Mary Jo White. (Read more hackers stories.)

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