<div dir="ltr"><div><a href="https://www.riskbasedsecurity.com/2016/04/data-breach-highlight-leading-law-firms-take-a-hit/">https://www.riskbasedsecurity.com/2016/04/data-breach-highlight-leading-law-firms-take-a-hit/</a><br><br><strong>Who:</strong>
<p><a href="https://www.cravath.com/" target="_blank">Cravath Swaine & Moore LLP</a> and <a href="http://www.weil.com/" target="_blank">Weil, Gotshal & Manges LLP</a></p>
<p><strong>How many impacted:</strong></p>
<p>Unknown</p>
<p><strong>Timeline:</strong></p>
<p>Occurred: Mid 2015</p>
<p>Reported: March 29, 2016</p>
<p><strong>What Happened:</strong></p>
<p>Details are murky as to what, exactly, has taken place within the
networks of two of Wall Street’s most trusted law firms. According to <a href="http://www.wsj.com/articles/hackers-breach-cravath-swaine-other-big-law-firms-1459293504" target="_blank">initial reporting by the Wall Street Journal</a>,
both Cravath Swaine & Moore and Weil, Gotshal & Manges were the
subject of unauthorized intrusions beginning as early as the summer of
2015. Both the FBI and Manhattan’s U.S. attorney’s office have launched
investigations into the incidents. Neither firm is saying much on record
about the intrusions or what type of data may have been compromised.
The WSJ, however, is reporting that “federal investigators are exploring
whether [hackers] stole confidential information for the purpose of
insider trading.”</p>
<p><strong>Why It Matters:</strong></p>
<p>In a year that has already seen more than its fair share of data
theft for tax fraud, it can be easy to lose sight of the fact that some
of the most valuable information around has nothing to do with personal
details, bank accounts or credit card numbers. Rather, insider
intelligence that can be used to exploit or manipulate financial markets
is a highly prized target and the theft of such data can have
implications far beyond the typical breach. Cravath Swaine is renowned
for their prowess when it comes to mergers and acquisitions while Weil
is the go-to firm for high stakes corporate finance and complex
transactions. By the very nature of their practices, both firms are
privy to a treasure trove of information perfect for getting the inside
scoop on the type of deals that move markets.</p>
<p>If these two venerable firms were breached for their client data,
they certainly are not alone in being targeted for insider information.
On March 23rd, the <a href="https://www.sec.gov/litigation/litreleases/2016/lr23498.htm" target="_blank">SEC announced</a> they had reached an $18M dollar settlement with 7 defendants that allegedly benefited from a scheme to <a href="http://www.reuters.com/article/cybersecurity-hacking-stocks-update-5-pi-idUSL1N10M0GY20150811" target="_blank">steal press releases from Business Wire, Marketwired and PR Newswire</a>.
The press releases in question were previously undisclosed
announcements of upcoming corporate deals. All in, 34 defendants are
accused of netting approximately $100M of illegally gained profits from
the scheme. <a href="http://www.dowjones.com/" target="_blank">Dow Jones & Co</a>. was seemingly targeted for the type of data theft, with <a href="http://www.bloomberg.com/news/articles/2015-10-16/russian-hackers-of-dow-jones-said-to-have-sought-trading-tips" target="_blank">allegations emerging in October of last year that Russian hackers compromised their systems</a> for insider trading tips. Even the <a href="https://www.federalreserve.gov/" target="_blank">Federal Reserve Board of Governors</a> has experienced issues with leaking highly sensitive market data. News broke in December 2014 that <a href="http://www.bloomberg.com/news/articles/2014-12-01/fed-leak-handed-traders-profitable-tip-prompted-secret-inquiry" target="_blank">confidential minutes from a FOMC meeting</a>
had made their way into a report by Medley Global Advisors a day ahead
their scheduled release. Astute readers of the report had the
opportunity to capitalize on falling U.S. Treasury securities’ prices
which took place shortly after the meeting minutes were released to the
general public.</p>
<p>The events at Cravath Swaine, Weil, the wire services and the Fed
show just how far some individuals are willing to go to gain the upper
hand in trading systems that should, in theory, be an even playing field
for all. With tens or even hundreds of millions of dollars at stake,
organizations cannot afford to lose sight of fact that insider
information is some of the most valuable data out there.</p>
<p>Here we are on April Fools day in 2016 and our research shows there have <a href="https://cyberriskanalytics.com/" target="_blank">already been over 632 data breaches disclosed and more than 177 million records compromised</a>. <a href="http://www.riskbasedsecurity.com/data-breach-quickview-report-2015-data-breach-trends/" target="_blank">2015 was a record breaking year</a>
with more than 4,027 incidents reported. If the current pace of breach
activity continues, 2016 may turn out to be just as extraordinary as
2015 and for all the wrong reasons.</p></div>
</div>