Hacked corporate press releases: exploiting information for profit

International group of hackers and stock traders are charged in scandal involving hacked press releases
(PR NewsChannel) / August 12, 2015 / TAMPA, Fla. 

PR NewsChannel logoWe’ve previously discussed the importance of the information contained within a press release and, even more importantly, the people you choose to distribute the press release to. But what happens when that information is disseminated to the wrong people at the wrong time?

An international group of hackers and stock traders made a whopping $30 million by gaining access to computer servers used by newswire service companies that distribute corporate press releases. Information obtained from these computers was then traded before press releases came out, earning hackers pay based on how much profits traders made.

Tyler Ragghianti, project manager at PR NewsChannel, a global press release distribution newswire created by journalists, says that press releases are meant to be distributed strategically.

“Most of the time, the information contained within a press release is time-sensitive and could affect hundreds if not thousands of people,” said Tyler Ragghianti. “Releasing this information exploits the time in which it should be made public.”

In total, nine people were charged in the indictments in New Jersey and New York City, with offenses including securities fraud, computer fraud and conspiracy to commit money laundering.

According to prosecutors, hackers gained access to news releases that were about to be issued by newswires including Market Wired,  PR Newswire and Business Wire, for nearly three years beginning in 2010. The releases enclosed earnings figures and other confidential information from various companies.

“When a company uses a newswire service they are trusting that the information will be kept secure before being sent out to media members,” said Ragghianti. “As a newswire, it’s important to take the appropriate measures and hire cybersecurity firms to ensure that data is safe.”

About PR NewsChannel: Designed for companies trying to break through and get noticed by consumers and the media, PR NewsChannel makes it possible for companies and public relations professionals to present news to the public exactly as they want it. About PR NewsChannel: PR NewsChannel is the global newswire created by journalists. We’re affordable, effective and offer unparalleled customer support. PR NewsChannel is the ONLY press release newswire with a Breaking News Desk, on call 24/7. We have a huge database of news contacts from around the U.S., Canada and the world, keeping it constantly updated so we can send a press release to the media at any time of day or night. We have built an extensive and powerful online syndication network, enabling us to harness the power of the Internet to get your news, everywhere.

Vanessa Malagon
PR firm: The Publicity Agency
Email:  Phone: 888-399-5534 x7782
Website: www.thepublicityagency.com

Direct link:  https://prnewschannel.com/2015/08/12/hacked-corporate-press-releases-exploiting-information-for-profit/

SOURCE:  PR NewsChannel

This press release is distributed by PR NewsChannel. Your News. Everywhere.