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US Authorities to Charge Traders, Hackers for Tapping Early Deal News

© Flickr / Scott BealeInvestors worldwide have ditched US stocks, showing a preference for the eurozone markets, and letting their stateside holdings drop to levels not seen since the financial crisis began in 2008.
Investors worldwide have ditched US stocks, showing a preference for the eurozone markets, and letting their stateside holdings drop to levels not seen since the financial crisis began in 2008. - Sputnik International
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According to the sources, hackers infiltrated the networks of news-wire services responsible for issuing merger and acquisition press releases.

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MOSCOW (Sputnik) — US prosecutors on Tuesday will unveil charges against a group of stock traders and hackers who allegedly gained access to news releases on mergers and acquisitions before they were made public, The Wall Street Journal reported, citing sources familiar with the matter.

Federal prosecutors in Brooklyn and New Jersey assert that tens of millions of dollars were gained using insider information, and those responsible are likely to face securities fraud and other charges related to the scheme, the newspaper stated.

According to the sources, hackers infiltrated the networks of news-wire services responsible for issuing merger and acquisition press releases. Traders used the information to place early bids on stock shares.

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The identities of the traders and hackers have not been revealed. Sources claim half a dozen people may face charges for illegal manipulation of financial markets.

Criminal activity online is broadly estimated to cost the United States $100 billion annually, more than any other country, with damage to business exceeding $100 million in recovery costs for large incidents, Intel Security, a corporate web site, and the Center for Strategic and International Studies, a think-tank, said in a joint report released in June 2014.

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