According to Forbes, the federal government is preparing charges against a hacking-insider trading ring that netted tens of millions of dollars by hacking into the networks of industry newswire organizations such as PR Newswire and BusinessWire.
The hackers illegally gained access unannounced news through stolen login information, malware and scam emails. Once they had gained access to the press releases which, included information on mergers and acquisitions, they passed the information on to traders in the United States who purchased shares of Fortune 500 companies like “Bank of America and Caterpillar,” said Forbes.
Forbes, reported that the authorities believe that the scam netted about $30 million in illegal profits and the head trader made upwards of $17 million.
