In this Insider Trading Scandal Case Study – A financial institution hires a digital forensics company to investigate an insider trading case. The institution had received a tip that one of its high-level employees was engaging in illegal activity. The digital forensics team was brought in to examine the electronic devices, emails, and internal systems of the suspect employee.
The forensic team was able to uncover evidence of the employee’s illegal activity, including the use of confidential company information to make trades and the use of encrypted messaging to communicate with others about the trades. The team also discovered that the employee had deleted certain files and emails to cover their tracks. However, the team was able to recover the deleted files and emails using advanced forensic techniques.
The financial institution was able to use the evidence provided by the digital forensics team to terminate the employee’s employment and file criminal charges. The employee was later convicted and the institution was able to avoid reputational damage and legal repercussions.
The digital forensics team also provided a detailed report of their findings to the financial institution, which helped the institution to identify and address any vulnerabilities in their systems and procedures that may have allowed the employee to engage in insider trading. The team also helped the institution in responding to regulatory inquiries and legal actions related to the case.
Additionally, the forensic team also assisted the institution in notifying any parties that may have been affected by the insider trading, such as the customers and shareholders of the institution, and the institution was able to take steps to regain the trust of those parties.
Overall, the digital forensics investigation played a crucial role in uncovering the insider trading scandal and bringing the employee to justice, while also helping the financial institution to mitigate the damage caused by the incident and improve its overall security and compliance measures.