

UBS Says It Had $2B Loss From Unauthorized Trading - espeed
http://www.bloomberg.com/news/2011-09-15/ubs-may-have-unprofitable-quarter-on-unauthorized-trade-s-2-billion-loss.html

======
teyc
A fraud, electronic or not, is a hack on a system. It gets interesting when
the monetary costs are so high _and_ quantifiable.

Perhaps someone who knows how investment banks work could tell us how they do
threat modelling against fraud. What lessons from everyday embezzlement by
bank staff could have been applied to prevent these?

------
jonah
So do they tell their traders "We only authorize you to make profitable
trades."?

In seriousness, it boggles my mind that institutions of this size don't have
automated monitoring systems in place to keep an eye on their employee's
activities.

