Financial News

  • 24 June 2014, 13:11

Hedge Fund Loses Millions In Hacking Attack

A US hedge fund lost millions of dollars over a two-month period after hackers installed software to steal trade secrets, it has been revealed.

In a rare raid on the financial services sector, the criminals delayed the fund's trades whilst stealing their profitable company secrets.

BAE Systems Applied Intelligence said the attack cost the unnamed fund millions of dollars and the identity of the attackers is still unknown.

It is understood the attackers lifted information on complex, high-speed trades from the firm, then sent the details to external servers using malware which was installed on the victim's network.

BAE product director Paul Henninger has hinted that it could be an example of corporate espionage by a smaller firm.

He said the attacks began with a successful phishing email attack against a staff member.

The scam happened last year and the company's board was quickly alerted.

Mr Henninger told CNBC: "This was something that was getting reviewed at the board level of this hedge fund precisely because it was having a material impact on performance across the portfolio."

It is not known whether the hack was reported to the Securities and Exchange Commission or FBI.

It is rare for details of hedge fund attacks to be made public.

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