Hackers target major Wall Street firms in fresh cyberattack attempts

Hackers used phone calls to target major Wall Street firms and hedge funds. The attempts highlight the growing use of social engineering and AI-backed cyber tactics.

In Short

• Attackers used phone calls, not malware, to trick employees for system access
• Point72 confirmed an attempted breach, no customer data stolen
• AI-powered cyberattacks and social engineering are rising threats

Several of Wall Street's biggest financial firms, including leading hedge funds and private equity companies, have been targeted in a series of sophisticated cyberattack attempts in recent days, reported news agency Reuters, citing two people familiar with the matter.

The attacks, which targeted the firms' information systems, relied on social engineering rather than malware. According to the report, hackers made phone calls to employees in an attempt to trick them into granting access to internal systems or revealing sensitive information.

The identities of all the targeted firms have not been disclosed, but the sources told Reuters that some of the world's largest hedge funds and several private equity firms were among those affected. The people spoke on condition of anonymity because the matter is confidential.

POINT72 CONFIRMS ATTEMPTED ATTACK

Point72 Asset Management informed investors on Wednesday that it had been targeted by hackers, one of the sources told Reuters.

The firm indicated that no customer information was stolen during the attempted breach. Point72 declined to comment publicly on the matter.

Hackers attempted to breach the systems of hedge funds, including Two Sigma Investments and Citadel as per the report.

HACKERS USED PHONE CALLS TO TARGET EMPLOYEES

The attackers relied on phone calls instead of traditional hacking techniques.

Cybercriminals allegedly attempted to persuade employees to provide access credentials or disclose other sensitive information that could allow them to enter company systems.

Cybersecurity experts told Reuters that this tactic remains widely used because it exploits human behaviour instead of technical vulnerabilities, making it one of the most effective forms of cybercrime.

The technique has previously been used by cybercriminal groups such as "Scattered Spider", a loose-knit hacking group that has targeted numerous companies over the past few years through sophisticated social engineering attacks.

AI-POWERED CYBERATTACKS ON THE RISE

The attempted attacks come as companies across the world grapple with a surge in AI-powered cyberattacks and ransomware incidents that have disrupted business operations and compromised sensitive data, Reuters reported.

Growing concerns over these threats prompted the White House earlier this year to establish a working group bringing together artificial intelligence developers and operators of critical infrastructure. The initiative aims to improve the sharing of cyber threat intelligence and strengthen coordinated defences against increasingly sophisticated attacks.

According to cybersecurity experts cited by Reuters, attempts to infiltrate major financial institutions are routine because of the vast amounts of sensitive financial and customer information they hold.

However, the latest incidents underscore how attackers are increasingly combining social engineering techniques with artificial intelligence to make phishing and impersonation attempts more convincing, posing fresh challenges for financial institutions and asset managers worldwide.

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