Several major Wall Street firms have been hit with a wave of sophisticated cyberattacks using voice phishing, or 'vishing' to trick employees into revealing sensitive information or granting access, Bloomberg reports.
The attacks targeted some of the world's largest hedge funds - including Citadel, Point72, and Two Sigma Investments, along with several private equity firms.
Two Sigma, which manages $75 billion, says they were able to thwart the attacks.
"Our security team responded quickly to an attempted vishing campaign targeting Two Sigma and other investment managers, and we have no indication of any impact to our data or our systems," a spokesperson told BBG. "We continue to monitor the situation closely."
While we don't know if the hackers used AI, cybersecurity attacks targeting Wall Street firms have surged over the past year, as artificial intelligence tools allow for cheap, fast, and efficient attacks according to Align Managed Services president, Vinod Paul.
"Before they could attack 50 entities in a targeted attack, now they can do 1,000," said Paul. "Hackers can also listen into a phone call and mimic the voice, tone and phrasings of the speakers to create fake calls."
In June, Google noted a wave of attacks this year against law firms and other professional service organizations - which also involved vishing, and people posing as IT workers to sneak into corporate offices.
Finra is now involved...
The Financial Industry Regulatory Authority, which oversees broker dealers and securities professionals, has been in touch with member firms about recent attempted breaches, according to a separate person with knowledge of the matter.
Finra started the Financial Intelligence Fusion Center in March - a secure portal for Finra and its member firms to share intelligence about fraud threats and to help coordinate responses. That was in response to the increasingly sophisticated cyber and fraud threats that were being directed at financial services firms. -Bloomberg
"The terrifying thing about modern day AI systems is that they have commoditized this and made it possible to execute attacks at scale," said Will Wilson, the chief executive officer of Antithesis. "Everybody will have to seriously level up. Otherwise they are going to be in big trouble."