Locks, Stocks and Brokers: Hackers and Insider Trading

On February 14, 2023, a Russian national and owner of Moscow cybersecurity firm M-13 was found guilty of wire fraud, securities fraud and conspiracy to obtain unauthorized access to computers. Vladislav Klyushin was charged along with four other men — Ivan Yermakov, Nikolai Rumiantcev, Mikhail Irzak and Igor Sladkov. However, Klyushin was the only one […]

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Russian national accused of hacking, illegal trading is extradited to US

A Russian national accused of hacking into U.S. company networks, stealing non-public information, and then trading stocks based on that information was extradited to the U.S., federal prosecutors announced Monday. Vladislav Kliushin, 41, along with four co-conspirators, allegedly hacked into two firms that help publicly traded companies prepare filings for public release, and used non-public information, such as earnings projections, to trade stocks ahead of the public release. Between February 2018 and August 2020, the scheme netted the hackers at least $82.5 million, prosecutors allege. The four other suspects in the case are: Nikolai Rumiantcev, 33; Mikhail Irzak, 43; Igor Sladkov, 42; and Ivan Yermakov, 35. All five face charges of conspiring to obtain unauthorized access to computers, along with wire and securities fraud. Kliushin is the only suspect in custody after his extradition from Switzerland. Yermakov, a former officer in the Russian military intelligence directorate, was already under U.S. […]

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Security and the Open Office Environment

Once upon a time, employees spent their days in offices or cubicles, in their own space apart from other employees. Today it’s much different, with employees working in open-plan offices, where large, co-working tables replace closed-off cubicle… Continue reading Security and the Open Office Environment

Ex-Equifax CIO, who knew about huge data breach, jailed for insider trading

So, just what was Equifax doing during those 40 days between discovering it had been hacked and sharing the bad news with the world?
Well, now we know. Or at least what Jun Ying, the CIO of Equifax US Information Solutions, was doing.
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Australian Hacker to Serve 3 Years in Prison for Insider Trading, Unauthorized Computer Access

A 42-year old Australian IT consultant is going to prison for three years on charges of “insider trading, unauthorized access to data with the intention to commit a serious offence (insider trading) and the alteration of electronic devices requir… Continue reading Australian Hacker to Serve 3 Years in Prison for Insider Trading, Unauthorized Computer Access

Manager who worked on Equifax’s breach website sentenced for insider trading

Sudhakar Reddy Bonthu wasn’t told he was working on Equifax’s breach notification website, but when he worked it out he used the information for his financial advantage.
Read more in my article on the Hot for Security blog.
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Manager who worked on Equifax’s breach website sentenced for insider trading

In August 2017, Sudhakar Reddy Bonthu, a production development manager in Equifax’s software management team was given a project codenamed “Sparta.” Bonthu’s bosses told him that the project was for one of the company’s c… Continue reading Manager who worked on Equifax’s breach website sentenced for insider trading

Second former Equifax staffer charged with insider trading

In another entry for the ‘what were they thinking’ file, a second former Equifax executive has been charged with insider trading in advance of the company’s massive data breach announcement last September. Continue reading Second former Equifax staffer charged with insider trading

Former Equifax employee charged with insider trading over 2017 data breach

The Securities and Exchange Commission accused a former Equifax employee of trading on confidential information in advance of the public announcement of the company’s 2017 data breach that impacted 148 million people. Equifax software engineering manager Sudhakar Reddy Bonthu is charged with taking and trading on the confidential information he received when he created a website for consumers impacted by the breach. Prosecutors say that Bonthu earned over $75,000 on his trading, a 3,500 percent return on his investment after Equifax’s stock fell 14 percent. He was fired in March after refusing to cooperate with an internal Equifax investigation. “As we allege, Bonthu, who was entrusted with confidential information by his employer, misused that information to conclude that his company had suffered a massive data breach and then sought to illegally profit,” said Richard R. Best, Director of the SEC’s Atlanta Regional Office.  “Corporate insiders simply cannot abuse their access to sensitive information […]

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