This one popped up recently…a good example of the dangers in, and for criminals the advantages of, knowing something that few others know. In this case, newswire firms (not named, but firms like Reuters or Bloomberg) customarily receive embargoed press releases announcing companies’ quarterly earnings for general availability at a particular point in the future. This is great information to have early, so you can either get a long or short position before anyone else according to the earnings news being good or bad. The SEC complaint says, “Turchynov and Ieremenko hid the intrusions by using proxy servers to mask their identities and by posing as newswire service employees and customers.”
This is where device fingerprinting (a Magnus feature) would have been helpful, since you cannot hide behind proxy servers then. The SEC detected this scam by analyzing trading activity ex post facto. In my opinion, this was preventable, and relying on detection methods way after the fact allowed this crew to make over $30M. Maybe there are other schemes that are still evading detection. Hmmm…prevention would be nice. Plus, who exactly lost the $30M?