1. financial-protection
In the wake of the massive probe into insider trading at hedge funds, where feds have been
able to level charges against individuals via evidence obtained from wire taps and covert
audio recordings, hedge fund managers are having their offices and homes swept for
listening gizmos, according to the FT. In the recent arrest of former SAC portfolio manager
Don Longeueil, for instance, the FBI's complaint is filled with evidence that came from his ex-
best friend, Noah Freeman, who wore a recorder as they talked about damaging disk drives.
The case against Galleon and Raj Rajaratnam, and specialists at expert network companies,
were built using identical methods.
The FT spoke to various security companies that implement sweeps for bugs and they all
said they'd seen a tremendous surge in requests for their expert services by money
managers. The founder of Insite Security, a security and risk administration business situated
in New York, told the FT, In the last 6 months, there has been an extremely increased
fascination with electronic sweeps for hedge funds. They’re working harder at clamping down
on their information security and making sure the telephones are safeguarded and the office
spaces aren’t being bugged. We’ve also been instructed to sweep traders’ homes. That story
was echoed by yet another security agency, called Guidepost Solutions, which has also
experienced a spike in calls from hedge funds which have arisen "out of the government’s
current investigations.” The head of Guidepost, Andrew O’Connell, said: “The hedge funds
calling for these facilities, which include sweeps but also compliance assistance, has grown
1000% over the last year.”
A lot has changed in the hedge fund segment throughout the years. New limitations,
increased investor functional requirements and taking on markets have led to changes in the
way funds ply their trade. Debatably one of the most considerable changes we’ve seen in the
realm of technology operations is an increased focus on security and data protection. On a
relatively regular basis, we learn about high-profile security breaches by criminal and state-
sponsored groups attempting to get access to susceptible material. The market is involved in
an arms race as security pitfalls and threats regularly change, while hedge funds and their
investors elevate their security poses.
Investors have gotten savvier on the subject of technology, desirous to better appreciate the
methods and processes that enterprises have in place to guide their daily operations. And
with the frequency of new public cloud programs, such as storage devices and sharing
services like Dropbox, firms and investors alike are forced to take particular notice at their
security profiles to make certain all essential procedures are taken to secure their
information. In order to properly manage security risks, firms must be practical. Conducting a
weakness evaluation is an effective way to measure the threat level for your firm and so
gauge the steps needed to combat the problems. They often expose dangerous activity
formerly unseen. Even simple security suggestions can go a great distance in remedying
complicated and expensive threats in the future. The most prevalent security threats often

2. stem from out-of-date network and anti-virus patches, application updates and Browser
activity.