we’re there, since we aren’t in their database, but their other automated security programs ought to be spotting our presence. They continuously monitor operation commands and functions. If any company in the world understands how to mine data looking for the smallest hint of something unusual, it would be the Exchange—at least that’s what I thought.”
“So far, we’ve only planted a bit of code, and that looks legitimate. All we’ve really done is take a look.” Jeff smiled. “And we’ve been clever.”
Frank split the chopsticks apart, then tested them in his right hand. “They don’t know we’re there, so we can set up all the offshore accounts we want and move money into them. Of course, it would leave a trail, since computers are keeping tabs on the money, but there’d be nothing to stop us. The trick is leaving nothing behind that points to us personally, then whipsawing the money around the world until it’s impossible to trace.”
“Do you really think that’s possible in this day and age? It seems to me that every digital transaction can be traced.”
“In theory, sure, but if you’re clever about it, create a host of dead ends to mask the money trails, then bury all of them in complexity, you can slow such a search to a crawl. In practice, you can make it never ending. It would take a dedicated team and time, but it can be done. We saw terror groups doing that with the money they raised and stole all the time when I was with the Company. We did sometimes catch it, but we knew what we found was just the tip of the iceberg. The Internet, Jeff, is as close to infinite as anything on Earth. You don’t have to block anyone trying to trace you, even if it were possible; using robo code, you just have to keep stretching the trail ad infinitum. It works out to the same thing.”
“Maybe. Better, though, if the Exchange never knew the money was taken in the first place.”
Frank pursed his lips. “Yes, but how do you do that?”
“Maybe take it directly from clients’ accounts, a bit here, a bit there, keeping in mind that a ‘bit’ in this case is a few hundred thousand, maybe a million at a time. Take a penny of every dollar out of transactions, for example. They might not even notice, and even if a client sees the loss, the Exchange doesn’t.”
“But if enough of them complain, the Exchange will get on it.”
“You conceal the loss within their trading patterns so it doesn’t look as if it’s an Exchange issue. You know bureaucrats, always looking to avoid problems if they can. If you aren’t greedy, all you’re doing is skimming a bit of the cream each time. It might raise a few eyebrows, but there’s no reason—in theory, at least—to cause any serious research. I think that’s the better way to do it. Then you can bury it with electronic false trails like you say. And it’s really only a variation of what the high-frequency traders are already doing, especially those hiding offshore.”
“Good thing we’re honest.” Frank jabbed at his rice with chopsticks. He finally put them down and picked up a fork. “You know,” he said, “I’m thinking about moving my nest egg out of stocks.”
“Why’s that?”
“I don’t like a lot of what I’ve seen, but it’s these high-frequency traders that really get me.”
“What about them?”
“I don’t care if a company finds a way to buy and sell faster. Paying for close physical access isn’t fair, but those with money always have an edge like that. The problem with high-frequency traders is their manipulation of the financial system. And because they’re allowed to hide what they do, no one really knows the extent of the manipulation.”
“I didn’t know you were such an expert.”
“I’m not, but I’m getting there. Actually, I’m reading a book about it. It’s really eye opening.”
“You’re obviously not working hard enough if you have time to read a book.”
“It’s part of research. A
“So far, we’ve only planted a bit of code, and that looks legitimate. All we’ve really done is take a look.” Jeff smiled. “And we’ve been clever.”
Frank split the chopsticks apart, then tested them in his right hand. “They don’t know we’re there, so we can set up all the offshore accounts we want and move money into them. Of course, it would leave a trail, since computers are keeping tabs on the money, but there’d be nothing to stop us. The trick is leaving nothing behind that points to us personally, then whipsawing the money around the world until it’s impossible to trace.”
“Do you really think that’s possible in this day and age? It seems to me that every digital transaction can be traced.”
“In theory, sure, but if you’re clever about it, create a host of dead ends to mask the money trails, then bury all of them in complexity, you can slow such a search to a crawl. In practice, you can make it never ending. It would take a dedicated team and time, but it can be done. We saw terror groups doing that with the money they raised and stole all the time when I was with the Company. We did sometimes catch it, but we knew what we found was just the tip of the iceberg. The Internet, Jeff, is as close to infinite as anything on Earth. You don’t have to block anyone trying to trace you, even if it were possible; using robo code, you just have to keep stretching the trail ad infinitum. It works out to the same thing.”
“Maybe. Better, though, if the Exchange never knew the money was taken in the first place.”
Frank pursed his lips. “Yes, but how do you do that?”
“Maybe take it directly from clients’ accounts, a bit here, a bit there, keeping in mind that a ‘bit’ in this case is a few hundred thousand, maybe a million at a time. Take a penny of every dollar out of transactions, for example. They might not even notice, and even if a client sees the loss, the Exchange doesn’t.”
“But if enough of them complain, the Exchange will get on it.”
“You conceal the loss within their trading patterns so it doesn’t look as if it’s an Exchange issue. You know bureaucrats, always looking to avoid problems if they can. If you aren’t greedy, all you’re doing is skimming a bit of the cream each time. It might raise a few eyebrows, but there’s no reason—in theory, at least—to cause any serious research. I think that’s the better way to do it. Then you can bury it with electronic false trails like you say. And it’s really only a variation of what the high-frequency traders are already doing, especially those hiding offshore.”
“Good thing we’re honest.” Frank jabbed at his rice with chopsticks. He finally put them down and picked up a fork. “You know,” he said, “I’m thinking about moving my nest egg out of stocks.”
“Why’s that?”
“I don’t like a lot of what I’ve seen, but it’s these high-frequency traders that really get me.”
“What about them?”
“I don’t care if a company finds a way to buy and sell faster. Paying for close physical access isn’t fair, but those with money always have an edge like that. The problem with high-frequency traders is their manipulation of the financial system. And because they’re allowed to hide what they do, no one really knows the extent of the manipulation.”
“I didn’t know you were such an expert.”
“I’m not, but I’m getting there. Actually, I’m reading a book about it. It’s really eye opening.”
“You’re obviously not working hard enough if you have time to read a book.”
“It’s part of research. A
Similar Books
