Bursa Malaysia has suffered from a hacking incident involving investors’ trading accounts being used for unauthorised share buying on Thursday (24 April) on the Malaysian stock exchange.
Bursa Malaysia, in a statement to The Edge, revealed that it has, together with the Securities Commission, been “informed by several brokers about the detection of unauthorised access and trading activities in certain online trading accounts”.
Bursa Malaysia suffers from hacking incident
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The Edge quoted Bursa Malaysia as saying that the extent of the incident is still being ascertained, assuring that capital market regulators and the brokers are working closely on the matter.
The report then sourced an insider in the stockbroking industry who said that the hacking mostly originated from overseas, as determined by the associated internet protocol (IP) addresses.
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Furthermore, the hacked accounts were reportedly those without pre-authorised internet trading access. This means that transactions for these accounts only require execution through their respective brokerage firms.
The source was quoted by The Edge as suggesting that the breach predominantly occurred at the brokerage firms’ systems rather than through individual investors’ login credentials.
Investors urged to implement security measures following the hacking incident
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Malaysia has two main providers of direct market access platform services for stockbroking firms, which are N2N Connect Bhd (KL:N2) and Excel Force MSC Bhd (KL: EFORCE).
The former had reportedly sent a note to its clients outlining several recommended security measures following the hackings. These include blocking identified high-risk IP addresses and implementing geo-blocking for non-Malaysian IPs.
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Bursa Malaysia said issue confined to limited number of brokers and client accounts
In a statement on Friday (25 April), Bursa Malaysia said that the failed logins or unauthorised access and trades were confned to a limited number of client trading accounts from a few brokers and is not widespread.
Furthermore, there have been no reports on unauthorised access and trades occurring on Friday as at the close of market.
The statement added,
“Bursa Malaysia also confirms that the robustness and security of its trading and clearing systems are not compromised. The Exchange’s priority is to keep the market accessible and orderly for all market participants, as continued operation of the market is vital to sustain investor confidence over the longer term.
“Bursa Malaysia and Securities Commission Malaysia continue to work closely with relevant parties, to ensure investor protection as well as a fair and orderly market are not compromised.”
So, what do you guys think of the whole situation? Share your thoughts with us in the comments.
Also read: Hackers Attack KLIA System & Demand RM44mil, Authorities Launch Comprehensive Investigation
