Facebook & Twitter Used By FBI Agents For Insider Trading Lookout

Operation Perfect Hedge is the name given by Federal Bureau Of Investigation of United States (FBI) for their regular check on social networking sites such as Twitter and Facebook inorder to look for insider trading. This piece of information is given by David Chaves and April Brooks, who are two top agents. Many of the Industrial consultants, Business analysts and hedge fund traders are subjected to conviction through this initiative. Till date more than 60 of those convictions are reported. Both of the top agents believe that it is not an easy task to estimate the frauds in security without the help of advanced technology as well as the constant social media monitoring. Brooks stated Reuters that

I will tell you 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,

According to chaves,

Some view insider trading as reaching this crescendo, and we have reached a top. I would suggest we have not.


It is not surprising to hear that social networking sites are constantly monitored by a government organization ( in this case FBI ). Before this year FBI also tried developing a Web app with which social networking sites such as Myspace, Twitter and Facebook’s news feeds can be periodically monitored. This sort of intelligence will help FBI in updating the evolving threats to security in the contemporary world.

Here is a paragraph from a FBI document of previous year : -

Intelligence analysis will often use social media to receive the first tip-off that a crisis has occurred, collect details of the crisis on scene through eyewitnesses, detect probably directions and timeframes the crisis is taking and can even serve as evidence for investigation, thus, it is an integral part of intelligence operations at SIOC. “