Hackers have recently launched a large-scale cyberattack against major asset management firms on Wall Street, with leading global hedge funds such as Two Sigma, Citadel, and Point72 among the targets. Several private equity firms have also been affected in this wave of attacks.

On August 5, sources familiar with the matter reported that the core method of this attack is "vishing" (voice phishing). Hackers use technology to simulate human voices, tricking employees over the phone or through voice messages into revealing sensitive information or granting system access.

Two Sigma, which manages $75 billion in assets, confirmed it successfully blocked the attack. A company spokesperson stated in a release that the security team responded swiftly to the vishing attempt targeting the firm and other investment institutions. There are currently no signs that the company's data or systems have been compromised.

Vinod Paul, President of Align Managed Services, a firm specializing in cybersecurity for hedge funds, pointed out that the number of cyberattacks on Wall Street has surged over the past year. He noted that artificial intelligence tools now allow hackers to launch large-scale, targeted attacks at a very low cost.

Vishing: A New Form of Attack Powered by Artificial Intelligence

A key characteristic of this attack wave is its heavy reliance on vishing technology.

Vinod Paul told reporters: "Previously, a targeted attack could focus on 50 individuals. Now, they can simultaneously target 1,000."

He added that hackers can also listen to calls and mimic the caller's voice, tone, and phrasing to fabricate deceptive phone calls.

In June, Google's cybersecurity division published a blog post detailing a new wave of attacks this year targeting law firms and other professional service organizations, which also involved vishing. In some cases, attackers even disguised themselves as IT personnel to gain physical access to office premises.

This attack on hedge funds closely mirrors those patterns, indicating that such threats are penetrating deeper into the financial services industry.

Regulatory Intervention and Industry Coordination

Regulators have begun communicating with industry members regarding this incident.

Reports indicate that the Financial Industry Regulatory Authority (FINRA), which oversees brokers and securities professionals, has been in contact with member firms about the recent attempted attacks.

FINRA launched the "Financial Intelligence Fusion Center" in March, a secure portal for FINRA and its member firms to share fraud threat intelligence and coordinate responses. The center was established specifically to address the increasingly complex cyber and fraud threats facing the financial services industry.

The targets of this attack wave include not only hedge funds but also several private equity firms, suggesting that the entire alternative asset management industry faces systemic risk exposure.

For hedge funds that manage vast amounts of external capital and store highly sensitive portfolio and client information, a data breach could result in immeasurable potential losses.