Because investment banks are positioned between corporations and financial markets, they help clients issue shares of stock leading into initial public offerings. They also help high-net-worth individuals invest their funds., Because of this, they gather sensitive and valuable financial information about the corporations they serve. According to security intelligence companies, the banking and financial industry is highly targeted for such information by individuals and criminal groups. These attacks are not rebuffed just by spending money on cybersecurity because many of them are enacted through the use of insider employees, who have been enlisted or placed there. Indeed insiders are one of the most significant risks investment bankers face. Some are lone wolfs wanting to benefit themselves financially. How well are major banks doing in preventing such attacks and how can they prevent insiders from obtaining data that is available to the bank employees who are given access to the data? Some security experts are saying that the problem stems from the use of this data off-site at home, at conferences, or at events attended by the employees.
JEFFREY NEWMAN, A FORMER PROSECUTOR, IS A WHISTLEBLOWER LAWYER WITH THE FIRM NEWMAN & SHAPIRO. HE CAN BE REACHED AT 617-823-3217