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November 02, 2005

An $8 million Estonian spider web on Wall Street

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Posted by Dominic Basulto

According to the New York Post, an Estonian investment bank made close to $8 million by hacking into market-moving press releases before they became public. As part of the scam, two traders at Lohmus Haavel & Viisemann used a program that accessed information from press releases at Business Wire's Web site prior to their distribution. With use of a computer "spider," the two traders could hunt for specific keywords in hot-off-the-wires press releases, effectively giving the Estonian crooks a few critical minutes in which they knew more than the market. In total, the Estonian traders manipulated data from more than 200 U.S. firms.

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