Hedge funds face true cyber-risks

HFT attacks may be unlikely, but cyber-threats remain

Data security

After defence firm BAE admitted that it did not thwart an unprecedented attack on a hedge fund’s high-frequency trading (HFT) system, questions remain as to the real threats posed by unidentified hackers.

The falsified attack – apparently invented by a BAE employee who has now left the company (see box) - brings to light the problem that the same cyber-security companies that describe the risks of being hacked also sell clients services to protect them from the threat.

So what are the real risks p