FBI using social media to look for securities fraud.
The Globe and Mail, an online Canadian new source, had an interesting article today, explaining how the FBI is now combing social media posts while they look for insider trading schemes. The article explained how large investment firms, institutional investors and hedge funds are using Twitter and Facebook to share ideas and investment strategies. According to April Brooks, a New York FBI field agent, predicting the next wave of securities fraud is always tough, but “…technology will play a huge part, social media, Twitter. Any kind of technology that is new and doesn’t exist today, if there is any way to exploit it, these individuals will exploit it.”
So all you traders out there – be careful with you tweets.