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Hackers Cause Havoc on Online Stock Trades

The American Securities and Exchange Commission (SEC) has revealed that hackers have managed to infiltrate top brokerage houses in the United States and cause havoc by trading illegally to the tune of millions of dollars. As a result, the SEC has enlisted the help of top crime-busting authorities such as the FBI and the Secret Service in a bid to trace this criminal element and bring it to justice.

Brokerage firms such as TD-Ameritrade and E-Trade confirmed that hackers managed to infiltrate their computers, despite top of the range security systems, and cause the loss of millions of dollars. While the customers who experienced losses were reimbursed, the companies themselves were severely hit. Ameritrade, for example, confirmed that hackers were responsible for the loss of about $4-million in one quarter alone, while E-Trade blamed online fraud for a certain percentage of their $18-million third-quarter losses.

Hackers are using a variety of methods to rob the brokerage houses. One method used is to profit off the manipulation of stock prices. Another involves selling stock and transferring the money to offshore accounts. So what can be done about this problem? The SEC hopes that the anti-crime units will be successful in cracking some of the hacking rings but in the meantime, brokerage houses are handing out free anti-hacking software to their clients and bringing their attention to the dangers of online fraud.