FNG Exclusive… FNG has learned that Retail FX and CFDs broker FXCM has reported a successful cyber security breach of the company’s servers to the Israel Securities Authority.
FXCM is now mainly based out of London (where CEO Brendan Callan sits) and Hong Kong, but operates much of its back office operations in Israel. The company operates regulated subsidiaries in the UK, South Africa, Australia, and Cyprus. Israel takes cyber incidents very seriously, with any attempted or successful hack attacks required to be reported immediately to the regulator.
FXCM reported that on Sunday morning (January 10) unidentified sources broke into the company’s servers and database, and successfully copied data including recorded conversations between company representatives and clients.
The Securities Authority said that it was working closely with FXCM from which it demanded all information it had regarding the cyber attack. The Authority noted that at this stage it believed that there is no danger to customer money, bank account details, or passwords. FXCM’s operations are continuing as normal.
Other than the report to Israeli authorities, FXCM has not yet made any formal press release or announcement on the matter. FXCM is a unit of US based Jefferies Financial.
FNG spoke with FXCM CEO Brendan Callan, who said of the breach:
“FXCM Israel, which is permitted to use the FXCM brand name in Israel has become aware of an unauthorized party accessing computerized data, including documentation of recordings of conversations between customers and FXCM Israel representatives.
According to company tests, to the best of its knowledge there is no danger to customer’s money, bank account details or account logins/passwords. All necessary and appropriate steps are being taken with regard to the local regulators and law enforcement. FXCM Group LLC will provide all possible assistance including the attention and resources of our internal cyber security team.”
We will continue to follow this story as it unfolds.