State-Sponsored Theft: Increase Latency on U.S. Internet Traffic

Back in 2010, the Economic and Security Review Commission reported that China was adding latency to U.S. Internet traffic (read story here). Specifically:
"High-frequency trading networks, which complete stock market transactions in microseconds, are vulnerable to manipulation by hackers who can inject tiny amounts of latency into them. By doing so, they can subtly change the course of trading and pocket profits of millions of dollars in just a few seconds, says Rony Kay, a former IBM research fellow and founder of cPacket Networks, a Silicon Valley firm that develops chips and technologies for network monitoring and traffic analysis."
 Cut to the recent story of the Edgar hack. Hedge funds pay Edgar over $200,000 per year for advance information for which regular subscribers pay only $4,800 per year. So it's clear that advance information is quite valuable. Instead of gaining a few milliseconds advance warning for high-frequency algorithms to strip off guaranteed profits, why not just hack the SEC filings in advance of public disclosure? How did the Ukranian hackers do it? See the Register story here.

Today's WSJ story how "Two Groups Likely Stole A Billion Dollars Of Crypto"(see the story here) underscores how most CISOs are running around…well…buck naked.

Question:  Will this jackassery ever end?

Comments

Popular Posts