A hedge fund was hacked in a complex attack that hampered the firm’s trading strategy and send information about its trades to offsite computers, according to a report by CNBC’s Eamon Javers.
The report, which doesn’t name the hedge fund, said the attack was thwarted by technicians at BAE Systems Applied Intelligence. The attacked firm is a client of BAE. The attack had not been previously disclosed.
“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.”
Javers reported that it isn’t known if the hedge fund reported the attack to the SEC or FBI, but said that BAE estimated it cost the firm “millions.”
Cyberattacks were in the news during the last Holiday shopping season after Target reported a massive breach of its credit card system.
The retail and credit card industry often discuss the procedures they have in place for preventing cyberattacks, but this should serve as a wake up call for the financial industry.