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The Ultimate Hack - HFT Hedge Fund's Trades "Slowed Down" By Malicious Malware
UPDATE: Sure enough, this was serious! *FBI, N.Y. POLICE ANNOUNCE FINANCIAL CYBER CRIMES TASK FORCE
Hacking Target... or The Pentagon... or Alcoa... or some Chinese military installation is all well and good; but mess with the US equity markets' mainstay market structure and it's getting serious. As BAE Systems reports, hackers slowed down high-speed trading at a large hedge fund last year and rerouted information about the company’s trades to offsite computers. The cyber-attack targeted the hedge fund’s trade order entry system and added gaps to the company’s trading algorithm - delaying orders by milliseconds. The hack went undetected for 8 weeks. Though the hedge fund was not named, it is believed that 'organized crime' is behind the hack - ironic really...
As Bloomberg reports,
Hackers rerouted information about a hedge fund’s high-speed trades last year to offsite computers, a security official with BAE Systems Plc said.
The hackers sought out monetary gain, targeting the hedge fund’s trade order entry system and adding gaps to the company’s trading algorithm, Paul Henninger, global product director at BAE Systems Applied Intelligence, said in an interview.
The attack slowed down high-speed trading at the hedge fund, which BAE wouldn’t name.
“This is the first time we’ve seen criminals actively go after a business system and effectively take over that system and create sabotage,” said Paul Henninger, global product director for BAE Systems Applied Intelligence.
The attack was going on for eight weeks and BAE was called in by the company at the end of 2013, Henninger said.
“It has all the signatures of an organized crime attack,” he said.
- *HACKERS PENETRATED A LARGE HEDGE FUND, BAE SYSTEMS TELLS CNBC
- *BAE SAYS HACKERS STALLED HIGH-SPEED TRADES AT FUND: CNBC
- *ATTACKS DELAYED TRADES BY MILLISECONDS, BAE'S HENNINGER SAYS
- *HACKERS SAID TO SEEK MONETARY GAIN IN ATTACK ON HEDGE FUND: BAE
- *HEDGE FUND HAD TRADING SLOWED BY HACKERS IN 2013, BAE SAYS
- *HACKERS REROUTED HIGH-SPEED TRADING INFORMATION, BAE SAYS
- *ATTACK ON HEDGE FUND WENT UNDETECTED FOR EIGHT WEEKS, BAE SAYS
- *ORGANIZED CRIME SAID TO BE BEHIND HEDGE FUND HACKER ATTACK
What better way to crash a stock market than to hack the HFTs?
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Awesome.
Now that is rich.
Good! Root them, crash them...
*ORGANIZED CRIME SAID TO BE BEHIND HEDGE FUND HACKER ATTACK
"Don't kid yourself Marty; it's not that organized."
http://www.youtube.com/watch?v=coDtzN6bXAM
fellas, i dont know about you, but this feels like things are beggining to boil over.
It was just Time Warner throttling their bandwith after getting tired of all the HFT ping pong going on sucking up bandwidth.
pods
What? Fish in wrappers is no longer effective
Wait a minute, you mean to tell me the money we are robbing is being robbed? We went to all that trouble and someone is stealing from us?!
"Bloody Pirates!!!"
http://www.youtube.com/watch?v=PE3K3Z13Uww
Now you know how retail investors feel, fuckers!
Since the market isn't rigged, just WTF is the problem?
Organized crime stealing from organized crime?
I repeat myself, just WTF is the problem?
Can you discern which one is which?
I've alway hated (all) malware.... until now
I heart anonymous
I mentioned why nobody hasnt created some virus to destroy the structure of this integrity-less markets a few years ago. If HFT and algos are controlling the markets, then create a program that causes it to run haywire. It seems like this has become reality. Problem is, any stock market crash in the future maybe blamed on this and not because of economic fundamentals deteriorating or inflation running rampant.
That's even more unbelievable than a bunch of cave-dwellers taking down big skyscrapers.
edit: Jesus, and so swallowable of a story for a world population accustomed to teevee stories, heroes, and villians. It's so obscene, it can't not happen.
The next crash wil big'un, and the Little Guy will be locked out of trading while the 1% take their profts out.
I felt that way last year. TBTB seem to have an endless supply of assholes and rabbits.
One huge gaping asshole, infinite supply of rabbits.
....so much for my Chocolate Doughnut today.
Organized crime? You mean the Feds , don't you?
Gives "ethical hacking" a new meaning.
But isnt organized crime the ones running the HFT scheme?
Fairly certain another HFT firm did it.
Be quicker, smarter or cheat remember.
Fixed it for you:
*ORGANIZED CRIME SAID TO BE BEHIND HEDGE FUND
No comment . . .
For once the High Freaks had to trade just like us "little people."
HUZZAH!!!
It's called "clearing the market"
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Ok guys. Which one of you did it?
I can't tell you but I heard his initials are..
It was John Galt who did the deed...
'organized crime' is behind the hack .......
No shit? The USG hacked a HFT gangs system huh?
Must have been on somebodies shitlist.
They call the pot, "organized" crime?
The funny part is that the article associates the word "criminals" with hackers, instead of hedge funds and HFT.
I thought the Fed and Wall Street, WERE the Organised Crime Syndicate.
What ever happened to that Russian programmer that took home that HFT code and was arrested...
An assault on GS it was as I recall? He made the mistake of flying into EWR. He is detained indefinitely as an enemy combatant. You attack GOLDMAN, you are attacking the state.
He got another job apparently.
Hold on...wait...just a moment...
I'm busy looking for a microgram of a fuck to give for the plight of the HFT fund
Searching between the couch cushions now...
Umm note the date???
http://www.bespokeinvest.com/storage/Philly%20Fed%20Main%20Table%2006191...
Organized crime is at the heart of wall street, always has been. NYNY always stood for two things, Finance and Mafia.
They go well together, like an Apple and a Worm ;-)
And how is this any different than IEX?
Presumably, once this information permeates through the hacker community,
HFTs are going to come under sustained hacker attacks demanding ransoms.
After all, these guys have the most money to lose and the most money to pay.
Or the high priests of the Kremlin could simply have the FSB pass the word-
fucking with the "little people" and their credit cards, as opposed to Western HFT/Banking interests is no longer an acceptable use of the benefit of the State's discretion in (non)enforcement of the cybercrime laws.
Belgium did it
organized crime = gollum sacks?
Working for the NSA can be profitable.
Let me guess; the Hedge Fund specialized in naked shorting Russian & Chinese CDS.
Nope, just shorting your 401k.
They got the money, hey
You know they got away
They headed down south and they're still running today
Singin' go on take the money and run...
Organized Crime Terrorists - OCT - fixed it a bit.
"Its a racket. Those stock market guys are crooked." (Al Capone)
"The irony was overwhelming."
Oh no! Organized crime is going after organized crime! Run people!
Give's a whole new meaning to the term "Good Fellas".
Hacking the hackers. What's good for the goose....
Bots control the market. Hackers control bots. Makes a lot of sense. And serious fun starts.
Which is why I can not touch crypto...even though I like many of the merits. I just know one day a smart little weasel will fuck me out of my moolah. Kinda like the Fed.
Crypto is backed up by SHA-256 (I won't get into the details but it is actually much more complex because everything is encrypted multiple times), which is the backbone of our governments communication systems. If that were to be hacked there would be many more problems than bitcoin "crashing".
For some great cryptography education, check this out: https://class.coursera.org/crypto-010/
"Crypto" isn't simply "backed up" by a hashing algorithm, and "Crypto" isn't something that has come along with Bitcoin (which, based on your mention of Bitcoin "crashing" even though the comment you replied to didn't mention it, seems to be how you've come to hear of "Crypto").
You should probably go to Bletchley Park if you want to learn about modern cryptography.
whoever did the actually deserves a medal.
"Somebody hoodooed the hoodoo man"
Junior Wells -- "Hoodoo Man Blues"
This has all the prime ingredients for a new flash crash.
Maybe it was Heidi Cruz's client? Ted might be upset.
“This is the first time we’ve seen criminals actively go after a business system and effectively take over that system and create sabotage,” said Paul Henninger, global product director for BAE Systems Applied Intelligence.
and they pay him big bucks to be completely fucking ignorant of shit that's been going on for two decades now
Cross-exchange fractal HFTs are background noise. Bid > Ask? No Problem. We've got plenty more where that came from.
Paul Henninger knows exactly what he is allowed to say. Can't be part of the real dealio if you go squealio.
It wasn't organized crime, it was a sub division of the HFT firms.
Oh, I guess that makes it organized crime, doesn't it?
Thieves stealing from thieves is no crime. It is an honorable act. Almost like Robin Hood and his crew. I approve this.
fbi, marshalls, coast goard will be all over this. "national security" and such
Funny, I thought the sabotage was from the HFT firms...
In the words of Nelson, "Ha ha."
Turnabout is fair play.
Ha ha, the hackers are getting better and better...
Something TPTB should keep in mind is that a lot of hackers aren't necessarily after the money...it's the CHALLENGE.
Which basically means you're dealing with a lot of "true believers", who are always harder to stop than the strictly greedy.
"This is the first time we’ve seen criminals actively go after a business system"
Business system!!!! LO - MOTHERFUCKING - L
Irony is as irony does.
One man's 'sabotage' is another mans 'fair and equitable market'
Live by the silicon diode, die by the silicon diode.
I really love this story, let the HFT raiders squeal like pigs.
And the culprit was the HFT's competitor - another HFT.
I keep waiting for them to hack the fed, goldman & jp. What the fuck are they waiting on?
So the attack lasted 8 weeks? It probably wasn't found until the accountants checked and found a day where the hedge fund actually LOST money...
So, now the little guy is looking at market where news and government reports are selectively sent out prior to release, and where exchanges are allowing front running by HFTs, where orders don't go to get the best price, and where hackers are hacking into HFTs who are hacking into market makers who are hacking into exchanges.
Stuxnet the pricks.
I don't think this malware is developed by any ordinary hacker. It takes en unusual amount of knowledge to make this work as described.
Just penetrating the system is probably the easiest step - you just need a few top secret government crypto keys...
But changing the programs, the algorithms, in a way that makes it possible to "milk" the fund for eight weeks without anyone noticing?! To do that you'll need a lot of inside information about the system.
The only people I know of who is able to do that is currently working at a handful of HFT-labs run by a few major banks.
"Hackers" n' 'criminals' n' 'organized crime', oh my!
Am I the only one that figures the establishment is setting up a straw man argument to foist upon us when the global economy
finally blows up again due to the delay imposed on the 2008
implosion that wiped out the entire global banking system and their proxy insurance companies?
NOTE: March 10th 2008 at 11:00am Bear Stearns time was
the official END of the world as you know it. One does
NOT need to be a Quantum Physicist to understand this.