What would happen if the stock market was hacked?
"A hack might cause a temporary outage, however any fraud perpetrated or operational mistakes on the exchange would be unwound by the participants or covered by the brokers and their insurance," says Philip Lieberman, president of Los Angeles-based Lieberman Software.
Are investors in the stock market at risk from hackers?
Investors in the stock market, whether through individual shares or funds, face the threat of major losses and disruption from hackers, according to a number of Wall Street investors and regulators studying the issue, the Wall Street Journal reports.
What happened to the Hong Kong Stock Exchange in 2011?
In 2011, hackers disrupted trading on the Hong Kong Stock Exchange, per Reuters. In 2010, Russian hackers got into Nasdaq's networks, according to Ars Technica, and were able "to roam unmolested for months and plant destructive malware designed to cause disruptions."
How did Scottrade make money from Russian hackers?
It involved buying thinly traded stocks in the trading firm's own accounts, pumping up their prices by placing buy orders at inflated prices through hacked accounts belonging to investors at Scottrade, then selling the shares in the Russian firm's own account.
What is one example of a type of unconscionable provision in the binding arbitration agreement in the Hooters case opener?
(chapter 4)What is one example of a type of unconscionable provision in the binding arbitration agreement in the Hooters case opener? Only Hooters was allowed to record the arbitration.
What court case established judicial review quizlet?
The U.S. Supreme Court case Marbury v. Madison (1803) established the principle of judicial review—the power of the federal courts to declare legislative and executive acts unconstitutional.
What must a prosecutor show in order for a corporation to be held criminally liable for the acts of an employee?
What must a prosecutor show in order for a corporation to be held criminally liable for the acts of an employee? The employee must have committed a criminal act within the scope of his or her authority with the corporation, and the employee must have acted with the intent to benefit the corporation.
What is federalism quizlet?
federalism. A system in which power is divided between the national and state governments. division of powers. Also called the separation of powers.
Who won Marbury v. Madison?
In a 4-0 decision, the Supreme Court ruled that although it was illegal for Madison to withhold the delivery of the appointments, forcing Madison to deliver the appointments was beyond the power of the U.S. Supreme Court.
Why was the power claimed by the Supreme Court important to its role in the federal government?
Second, due to its power of judicial review, it plays an essential role in ensuring that each branch of government recognizes the limits of its own power. Third, it protects civil rights and liberties by striking down laws that violate the Constitution.
Can the corporations agents and officers be held liable for the crimes of the company if so how can they be punished?
How Can a Corporation Be Liable for Criminal Acts? A corporation can be held liable for the criminal acts of it's employees as long as the employees are acting within the scope of employment and their conduct benefits the corporation. A corporation cannot be imprisoned or punished like individuals.
What are the two requirements for holding a corporation criminally liable for the actions of its agents?
To hold a corporation liable for these actions, the government must establish that the corporate agent's actions (i) were within the scope of his duties and (ii) were intended, at least in part, to benefit the corporation.
When can a corporation be held criminally liable?
Can a corporation be held criminally liable in the same way as an individual can be held liable? A. Yes. A corporation can be prosecuted for essentially all of the same crimes as individuals and, if proven guilty beyond a reasonable doubt, convicted of felonies and misdemeanors.
Is the United States federalism?
The American system of government is known as federalism. The sovereign power is divided between the national government and local governments in federalism.
Why did the Founding Fathers created a government based on federalism?
The Framers chose federalism as a way of government because they believed that governmental power inevitably poses a threat to individual liberty, the exercise of governmental power must be restrained, and that to divide governmental power is to prevent its abuse.
How does the U.S. government use federalism?
Overview. Federalism is a system of government in which the same territory is controlled by two levels of government. Generally, an overarching national government is responsible for broader governance of larger territorial areas, while the smaller subdivisions, states, and cities govern the issues of local concern.
Why do people rely on the stock market?
Millions of Americans rely on the stock market as their primary wealth-building tool. Without it, the "American dream" would be even more unachievable than it is today.
What happens if the stock market falls 7 percent?
For example, if the New York Stock Exchange falls 7 percent in a day, trading stops. It stops again at 13 percent, and again at 20 percent. And if fraud was under way, any questionable trades would be reversed.
What is phishing scam?
Phishing scams, which are typically email campaigns where attackers pretend to be an authoritative entity you know and trust, are both popular and effective.
How many credit cards were compromised?
Forty million compromised credit and debit cards a mind-numbing amount of financial fraud, but if somehow an attacker was able to "dwell" inside the financial system and manipulate trades, the impact on the stock market – which stores tens of trillions of dollars of wealth – is literally unfathomable.
What are the protections of the stock market?
The stock market has serious protections in place to prevent any sort of "hack," or fraud-based fiasco brought on by hostile actors .
Do exchanges always function smoothly?
But despite all the protections that the biggest exchanges have, they don't always function smoothly.
Why did Mississippi Valley Silica pay $9 million?
in 2009, Mississippi Valley Silica Company was ordered to pay a plaintiff $9 million because the court ruled it sold sand to the plaintiff's employer with the knowledge that using the sand on a regular basis would expose a worker to a form of cancer, and MVSC did not alert those who bought the sand about the risk.
What is the purpose of the Foreign Corrupt Practices Act?
the foreign corrupt practices act (FCPA) prohibits payments to foreign officials to influence an official act or decision corruptly or to influence a foreign government. true. the purpose of criminal law is to punish an offender for causing harm to public health, safety, or morals. true.
Which branch of government is responsible for negotiating treaties?
a treaty is generally negotiated by the executive branch and must then be approved by 2/3 of the senate. the cost-benefit analysis approach to legal chance is tied closely to the pursuit of. efficiency. one of the most often-used guidelines for shaping the law is tradition, or custom, which is also called.
Who said there are far easier targets than banks that can pay just as much?
Jon DiMaggio, a former intelligence community analyst, agrees, saying: "There are far easier targets than banks that can pay just as much.". Ransomware group follows through on threat to release personnel files of DC police officers.
Who is the CEO of Threatlocker?
Danny Jenkins, CEO of cybersecurity firm ThreatLocker, told CNN Business that banks get hit with attempted ransomware attacks "nearly everyday" but they're mitigated.
What would happen if a pipeline ransomware attack happened?
The nightmare scenario is that a Colonial Pipeline-style ransomware attack disrupts major banks or even financial markets, dealing a blow to the flow of money and confidence in the system. Instead of lines at gas stations, social media would be ablaze with images of broken ATMs or inaccessible brokerage accounts.
What is holding the pipeline hostage?
New York (CNN Business) Hackers are holding one of America's most important pipelines hostage, a stunning development that should serve as a warning to even bigger targets: the nation's financial industry.
What happened to Bangladesh's central bank?
In 2016, Bangladesh's central bank was attacked by hackers that the FBI has blamed on North Korea. In February, the Justice Department charged three North Koreans of a conspiracy to steal and extort more than $1.3 billion in cash and cryptocurrency from banks and other businesses. Prosecutors accused the operatives of targeting banks around the world, including banks in Malta in 2019.
What happened to the Colonial Pipeline?
The shutdown of the Colonial Pipeline, which delivers nearly half the gasoline and diesel to the East Coast, shows the real-world impact of increasingly sophisticated cyberattacks. Panic buying by nervous drivers amplified the supply crunch, sparking significant gas station outages in the Southeast.
Do banks have strong security?
Although big banks are believed to have strong defenses, security experts and industry officials fear hackers could infiltrate the industry through third parties with lax security.
What would happen if hackers shut down payroll processors?
Shutting down a huge payroll processor would leave tens of millions of households, many of which also are investors, without sufficient funds to pay for unsettled trades. ADP ( ADP) would be a prime target since it generates salary checks and direct deposits for about 16% of U.S. workers.
When did hackers get into the Associated Press?
Indeed, in 2013 hackers got into the Associated Press Twitter account, and sent out a false report about explosions in the White House that injured President Obama, sending stocks tumbling, according to U.S. News & World Report .
What is a hack pump dump?
It involved buying thinly traded stocks in the trading firm's own accounts, pumping up their prices by placing buy orders at inflated prices through hacked accounts belonging to investors at Scottrade, then selling the shares in the Russian firm's own account. A short-selling variant also was used, with the Russian firm shorting stocks in its own account, then driving their prices down with sell orders placed through the hacked Scottrade accounts. An Indian man was convicted for running a similar scheme in 2008, Wired.com added. Scottrade has since been acquired by TD Ameritrade, a division of The Toronto-Dominion Bank ( TD ).
What is shady trading?
A shady trading practice is secretly to acquire damaging information on a company, short the company's shares, then release that information in an attempt to drive the share price down. Based on hacker lingo in which to "dox" is an attempt to damage the reputation of a person or organization online, so-called stock doxing has become a growing market manipulation technique, according to a report in Wired UK .
What is Darpa's role in the financial system?
DARPA has been conducting brainstorming sessions with key players in the financial system to identify potential risks and to develop effective counter-measures against them. Particularly important in these discussions, the Journal notes, have been market participants engaged in high-frequency trading (HFT) or high-speed trading, the managers of quant funds, and other persons with deep knowledge of the automated systems that drive so much of trading today, often with reaction times measured in fractions of a second.
Who is Mark Kolakowski?
Cyber Wars: How The U.S. Stock Market Could Get Hacked. Mark Kolakowski is a business consultant, freelance writer, and business school lecturer. He has been an expert in investing, and a market watcher for 40-plus years. He received his MBA in finance from The Wharton School of The University of Pennsylvania and is the author ...
Why was Sam criticized by his supervisor?
sam was criticized by his supervisor for failing to make a sufficient number of arrests. Sam went into a section of town known for criminal activity, picked up several suspicious individuals and read them their Miranda rights and arrested them hoping they would confess something. Alice, was scared and hoping ot cut a deal she immeadiately confessed to burglarizing a local pawnshop. which of the following is Alice's best defense at trial?
Why does the NCC urge states to enact model laws?
the NCC regularly urges states to enact model laws to provide greater uniformity of law. true. judges claim the power to issue executive orders on the basis of the Article II, Section 1 constitutional power to 'take care that the laws be faithfully executed'. false.
What is the most often used guideline for shaping the law?
one of the most often guidelines for shaping the law is tradition, or custom, which is called..
Where is the largest stock exchange?
Wall Street, The largest stock exchange, located in New York City. Most of the companies on this exchange are larger companies with higher-priced stock.
What is a pledged asset?
A valuable asset that is pledged to ensure loan payments.
