On February 14, 2023, a Russian national and owner of Moscow cybersecurity firm M-13 was found guilty of wire fraud, securities fraud and conspiracy to obtain unauthorized access to computers.
Vladislav Klyushin was charged along with four other men — Ivan Yermakov, Nikolai Rumiantcev, Mikhail Irzak and Igor Sladkov. However, Klyushin was the only one arrested and extradited to the United States, while the others remain at large.
The Kremlin-connected businessman’s scheme focused on insider trading. By obtaining and using information not known to the general public, it’s estimated that Klyushin and his co-conspirators made more than $80 million.
But how exactly did this happen? How did the group break digital locks to capture critical information and gain a stock market advantage? Here’s a look at how malicious actors started insider trading, and what it means for organizations.
How Did Threat Actors Make This Happen?
This insider attack effort began in 2018 when authorities say Ivan Yermakov — an employee of M-13 and a Russian intelligence agent charged with interfering in the 2016 U.S. election — hacked into the computer systems of two vendors used by large companies to file reports with the Securities and Exchange Commission (SEC).
Using the information in reports not yet available to the public, Klyushin and his associates made stock purchases that generated ongoing revenue and minimized potential losses. For example, if quarterly reports showed an uptick in corporate profitability, malicious actors bought stock at a lower price and reaped the benefits as share prices increased once reports went public. This information also helped them avoid the natural downturns that come with stock market investing. If annual reports highlighted ..
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