Could better password protection have stopped the Societe Generale rogue trader?
The article examines the case of Societe Generale, which has lost €4.9 billion in the fallout from the trading scandal blamed on Paris, France-based trader Jerome Kerviel. The French bank claims the fraud was based on simple transactions concealed by using sophisticated techniques. Societe Generale admitted misappropriating the information technology (IT) access codes used by operators to cancel certain operations. Kerviel was responsible for controlling traders when he worked in the bank’s middle office for five years, allowing him to have insider knowledge of the systems in place.
