Pentagon Reveals Potential Stock Market Hacking, US Financial System at Risk
Due to the issues about hackers in America lately, the United States Department of Defense is worrying that these intruders might attack the financial system of the country. This is the reason why it is currently in talks with the traders of Wall Street to take the necessary actions in preventing the hackers, should they attack.
According from the reported online news through the Wall Street Journal, the Defense Advanced Research Projects Agency (DARPA) of Pentagon is now talking with several traders as well as managers of quantitative hedge fund in order to explain the possible scope of damage that the hackers might cause if they attack the financial system of American.
The DARPA is one of the trusted research divisions of Pentagon.
Based on the reported information, DARPA already began its consultation since 2016 and made an effort to reach out the different business owners who operate financial firms. The agency is serious in creating the best possible solutions, in case the hacking groups start to pursue their plans to take down the stock market in the United States.
They actually considered this move as an early state preparation so that they know exactly what to do should the hacking takes place. DARPA revealed the confirmation of the information about the preparation through the Wall Street Journal and recognized as Financial Market Vulnerabilities Project.
“We started thinking a couple years ago what it would be like if a malicious actor wanted to cause havoc on our financial markets,” Said Wade Shen during an interview with WSJ as quoted by rt.com.
Shen is the current program manager of DARPA.
This particular hacking issued that bothered Pentagon somehow received different reactions from those who learned about it. From the published report through businessinsider.com, the information revealed that it is a bit funny to learn that the Pentagon is now showing interest to determine the potential hacking issues, yet nobody is worrying on how are manipulating the stock market.
It seems that the American government is concerned about the declining stocks, which even involved the Pentagon.
For the past several years, there had been unwanted reports about stock market manipulations and they occurred not only in the United States, but also across the globe. There are experts on this field who revealed that manipulating stocks is already part of the trading industry and believe the shares become stable later on.
Unfortunately, this kind of investment can become rigged to ordinary shareholders who do not have enough knowledge on how to recover their losses and go with the game. Sometimes, there is this mindset that losing money from this kind of trading will never give a chance to win. This particular issue could happen if there are no good buyers and the stock values collapses.
It is also true when they say that the success of stock market can depend on how the ordinary traders survive. This is the reason why there are existing regulations to provide the best security for both minor and huge traders out there. It is definitely important to make the trading fair and not just for the interest of huge traders.
Going back to the concern of Pentagon about the potential hacking of the US financial system, the Security and Exchange Commission (SEC) admitted last month that in 2016, there are hackers who managed to access their corporate disclosure database. The commission added that the hackers might have earned money from the stolen information.
However, SEC revealed that it then resolved the vulnerability last year and last August, it learned about the issue affecting the trade market.
As detailed by rt.com, the hackers might possible attack the payroll system, perform trade algorithms manipulation and create bogus orders in selling stocks. If this happens, it can definitely affect the overall stock market performance down.