It was reported yesterday that a former Goldman Sachs employee has been charged by the Securities and Exchange Commission with making nearly half a million dollars by stealing non-public information from the bank’s email system and using it to make illegal trades ahead of client mergers.
Yue Han, a former associate in Goldman’s compliance department, faces insider trading charges over the accusation that he netted more than $450,000 in illicit profits thanks to information gleaned from emails from and to investment bankers.
Commenting on this, Mark Bower, global director at HPE Security, told @DFMag
“The case to use powerful internal email encryption to separate unauthorised users from sensitive financial and market data is very strong for avoiding insider risks like this. Today’s message encryption can enable email confidentiality that’s end-to-end secure from creation to archive, transparent in use and maintains protection of content in in-boxes in the enterprise and cloud without compromising discovery and recovery common in SEC regulated financial services businesses.
When streamlining compliance processes, there is the double benefit of mitigating the contemporary risk of “internal” email inside the firm becoming inadvertently “external” from the loss and theft from today’s mobile endpoints across the financial interaction value chain, and enabling secure customer services .”