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Weak Cyber Security Led to Nasdaq Hacker Attack

According to several sources who wish to remain anonymous, last year's cyber attack on Nasdaq OMX Group was the result of surprisingly lax security by the company operating the Nasdaq composite stock market.  An ongoing FBI probe into the attack is focused on Nasdaq's Directors Desk collaboration software for corporate boards, where the infiltration took place.  The Web-based software is various directors share confidential information and collaborate on projects while maintaining confidentiality. 

FBI agents have found that Nasdaq's primary network architecture is sound, which prevented the hackers from reaching Nasdaq's trading systems.  Investigators were surprised, however, to discover that some of the company's computers had out-of-date software, poorly configured firewalls, and had not been updated with security patches that would have fixed the “bugs” that hackers used to infiltrate the system.

While it's not uncommon in the corporate world for a company inadvertently skip software updates, investigators were surprised to discover such lack of attention to so-called “cyber hygiene” at a company whose operations are so vital to the overall financial sector.  According to sources, the attack on Nasdaq's network was relatively easy, given the vulnerabilities the company allowed to build up.  Nasdaq subsequently defended its cyber security practices, and pointed out that no sensitive data was compromised in the October 2010 attack.

Meanwhile, the Nasdaq attack has sparked broader concerns about the increasing severity of hacker attacks on major financial firms and the security practices of those companies.  Cyber experts note that there are literally hundreds of companies, even some in the defense sector, whose systems have been infected with some type of malware or malicious code without their knowledge.  Insiders say the malware found in Nasdaq's systems was complex and insidious, but could have been detected sooner with tougher security measures in place and more vigilance from the company's security experts.