Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

Insider Arrested For Stealing Critical Proprietary Code From Financial Services Company

Blogger says stolen code might have been Goldman Sachs' 'secret sauce'

Wall Street is abuzz today with news that a computer programmer has been arrested for stealing top-secret application code that drives his former company's high-speed financial trading platform.

According to an affidavit (PDF) filed by the arresting FBI officer and subsequently posted by news media, the programmer, Sergey Aleynikov, copied "proprietary trade code" from his company and uploaded it to a Website in Germany. He later quit his job at the New York firm and moved to a new company in Chicago that "intended to engage in high-volume automated trading" -- and paid him around three times his old salary of $400,000, according to the affidavit.

The financial institution, which is not named in the affidavit, allegedly saw via routine monitoring that Aleynikov's machine was used at least four times to send some 32 megabytes of data to an external site last month. The institution then recovered Aleynikov's bash history -- a record of commands used on his desktop -- to identify his specific actions, the affidavit says.

In a blog, Reuters columnist Matthew Goldstein reported that the New York firm in the affidavit is Goldman Sachs, and that Aleynikov may have stolen the "secret sauce" that has allowed the financial services firm to consistently perform better than many of its competitors. Several other publications have picked up on Goldstein's story, although Goldman Sachs has yet to make a public comment.

The affidavit does not address Goldstein's report, but it does say that "certain features of the [code], such as speed and efficiency by which it obtains and processes market data, gives the Financial Institution a competitive advantage among other firms that also engage in high-volume automated trading. The Financial Institution further believes that, if competing firms were to obtain the [code] and use its features, the Financial Institution's ability to profit from the [code]'s speed and efficiency would be significantly diminished."

Security experts, meanwhile, are saying that Aleynikov's actions should have been caught before the proprietary data got out. According to the affidavit, the downloads took place during four different sessions, and the data was encrypted before it was uploaded to the German Website. The downloads took place less than a week before Aleynikov announced his resignation. Aleynikov attempted to delete the encryption software and his bash history before transferring the files to his own computers, the affidavit says.

According to Goldstein's blog, Aleynikov told the FBI when he was arrested that he "only intended to collect 'open source' files on which he had worked, but later realized that he had obtained more files than he intended." Aleynikov's attorney reportedly is saying that her client will be proved innocent of the single charge of theft of trade secrets.

Wall Streeters, meanwhile, are wondering what might have been done with the secret software, which may have been available to others for several weeks now. The affidavit does not name the new firm that Aleynikov allegedly was prepared to join, nor does it say who had access to the data on the German site. Some financial experts expressed concern that Goldman Sachs' stock might suffer as a result of the reports, and others said they believe the financial institution in question should disclose the potential security breach and its potential impact on the company's ability to compete in the market.

Have a comment on this story? Please click "Discuss" below. If you'd like to contact Dark Reading's editors directly, send us a message. Tim Wilson is Editor in Chief and co-founder of Dark Reading.com, UBM Tech's online community for information security professionals. He is responsible for managing the site, assigning and editing content, and writing breaking news stories. Wilson has been recognized as one ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Commentary
Ransomware Is Not the Problem
Adam Shostack, Consultant, Entrepreneur, Technologist, Game Designer,  6/9/2021
Edge-DRsplash-11-edge-ask-the-experts
How Can I Test the Security of My Home-Office Employees' Routers?
John Bock, Senior Research Scientist,  6/7/2021
News
New Ransomware Group Claiming Connection to REvil Gang Surfaces
Jai Vijayan, Contributing Writer,  6/10/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
The State of Cybersecurity Incident Response
In this report learn how enterprises are building their incident response teams and processes, how they research potential compromises, how they respond to new breaches, and what tools and processes they use to remediate problems and improve their cyber defenses for the future.
Flash Poll
How Enterprises are Developing Secure Applications
How Enterprises are Developing Secure Applications
Recent breaches of third-party apps are driving many organizations to think harder about the security of their off-the-shelf software as they continue to move left in secure software development practices.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2021-31494
PUBLISHED: 2021-06-15
This vulnerability allows remote attackers to execute arbitrary code on affected installations of OpenText Brava! Desktop 16.6.3.84. User interaction is required to exploit this vulnerability in that the target must visit a malicious page or open a malicious file. The specific flaw exists within th...
CVE-2021-31495
PUBLISHED: 2021-06-15
This vulnerability allows remote attackers to execute arbitrary code on affected installations of OpenText Brava! Desktop 16.6.3.84. User interaction is required to exploit this vulnerability in that the target must visit a malicious page or open a malicious file. The specific flaw exists within th...
CVE-2021-31496
PUBLISHED: 2021-06-15
This vulnerability allows remote attackers to execute arbitrary code on affected installations of OpenText Brava! Desktop 16.6.3.84. User interaction is required to exploit this vulnerability in that the target must visit a malicious page or open a malicious file. The specific flaw exists within th...
CVE-2021-31497
PUBLISHED: 2021-06-15
This vulnerability allows remote attackers to execute arbitrary code on affected installations of OpenText Brava! Desktop 16.6.3.84. User interaction is required to exploit this vulnerability in that the target must visit a malicious page or open a malicious file. The specific flaw exists within th...
CVE-2021-31498
PUBLISHED: 2021-06-15
This vulnerability allows remote attackers to disclose sensitive information on affected installations of OpenText Brava! Desktop 16.6.3.84. User interaction is required to exploit this vulnerability in that the target must visit a malicious page or open a malicious file. The specific flaw exists w...