Insider Trading Schemes Thrive on Password Resets in Office365 Breach
Insider Trading Scheme Revealed
Federal prosecutors have charged Robert B. Westbrook, a UK national, in connection with a sophisticated insider trading scheme. By unlawfully breaching the Office365 accounts of executives at five US companies through fraudulent password resets, he managed to earn about $3.75 million in illicit profits, as he acted on confidential quarterly financial reports before their public release.
The Role of Cybersecurity in Market Protection
The SEC has initiated a separate civil suit against Westbrook, pushing for penalties and recovery of the illicit gains. Jorge G. Tenreiro, head of the SEC's Crypto Assets and Cyber Unit, emphasized the agency’s commitment to protecting investors from cyber fraud, noting advanced techniques in data analytics and crypto asset tracing.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.