Attacks/Breaches

5/9/2017
05:50 PM
50%
50%

Hackers Face $8.9 Million Fine for Law Firm Breaches

A federal court orders three Chinese nationals to pay $8.9 million in fines and penalties for hacking into two law firms and using stolen confidential information to trade stocks.

Three Chinese stock traders were ordered to pay $8.9 million in fines and penalties for hacking into two law firms and stealing information on upcoming mergers and acquisitions and then leveraging the information to trade stocks.

A federal court in New York ordered Iat Hong, Bo Zheng, and Hung Chin to pay fines, as well as Hong's mother Sou Cheng Lai who held a bank account where the proceeds from the stock sales were kept, according to a copy of the judgment posted by SC Media.

The three hackers installed malware on the law firms' computer networks, enabling them to view emails on mergers and acquisitions in which the firms were involved. With the information, the attackers purchased stock in at least three public companies prior to their merger announcements, according to the Securities and Exchange Commission (SEC), which filed the lawsuit against the hackers.

The hackers shelled out roughly $7.5 million within a month's time to buy shares in Altera prior to its 2015 acquisition by Intel. The defendants also snapped up shares in Borderfree before its 2015 buyout by Pitney Bowes, and also acquired shares in InterMune before its 2014 merger deal with Roche, according to the SEC. With these transactions, the trio racked up nearly $3 million in illegal profits, the SEC stated.

Read more about the court judgment here.

Dark Reading's Quick Hits delivers a brief synopsis and summary of the significance of breaking news events. For more information from the original source of the news item, please follow the link provided in this article. View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
RyanSepe
50%
50%
RyanSepe,
User Rank: Ninja
5/10/2017 | 10:04:36 AM
Breach Yield
The $8.9 million fine and the $7.5 million dollars utilized are great metrics to delineate how important this endeavor was to the malicious entities but was was the original monetary yield from these efforts?
Election Websites, Back-End Systems Most at Risk of Cyberattack in Midterms
Kelly Jackson Higgins, Executive Editor at Dark Reading,  8/14/2018
Intel Reveals New Spectre-Like Vulnerability
Curtis Franklin Jr., Senior Editor at Dark Reading,  8/15/2018
The Data Security Landscape Is Shifting: Is Your Company Prepared?
Francis Dinha, CEO & Co-Founder of OpenVPN,  8/13/2018
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2018-11771
PUBLISHED: 2018-08-16
When reading a specially crafted ZIP archive, the read method of Apache Commons Compress 1.7 to 1.17's ZipArchiveInputStream can fail to return the correct EOF indication after the end of the stream has been reached. When combined with a java.io.InputStreamReader this can lead to an infinite stream,...
CVE-2018-1715
PUBLISHED: 2018-08-16
IBM Maximo Asset Management 7.6 through 7.6.3 is vulnerable to cross-site scripting. This vulnerability allows users to embed arbitrary JavaScript code in the Web UI thus altering the intended functionality potentially leading to credentials disclosure within a trusted session. IBM X-Force ID: 14700...
CVE-2017-13106
PUBLISHED: 2018-08-15
Cheetahmobile CM Launcher 3D - Theme, wallpaper, Secure, Efficient, 5.0.3, 2017-09-19, Android application uses a hard-coded key for encryption. Data stored using this key can be decrypted by anyone able to access this key.
CVE-2017-13107
PUBLISHED: 2018-08-15
Live.me - live stream video chat, 3.7.20, 2017-11-06, Android application uses a hard-coded key for encryption. Data stored using this key can be decrypted by anyone able to access this key.
CVE-2017-13108
PUBLISHED: 2018-08-15
DFNDR Security Antivirus, Anti-hacking & Cleaner, 5.0.9, 2017-11-01, Android application uses a hard-coded key for encryption. Data stored using this key can be decrypted by anyone able to access this key.