Cybersecurity Sector Mixed Following FXCM Cyberattack

• FXCM Inc FXCM disclosed it was a victim of a criminal cybersecurity hack.
• FXCM's stock plummeted nearly 8 percent during Thursday's morning session.
• Cybersecurity names were mixed following FXCM's disclosure.

FXCM, an online provider of foreign exchange trading and related services, issued a press release Thursday morning confirming that it was a victim of a criminal cybersecurity incident which involved hackers gaining unauthorized access to customer information.

FXCM confirmed that a "small number" of unauthorized wire transfers from affected customer accounts were initiated. However, all funds have been returned to the appropriate accounts, the company noted in its press release.

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FXCM provided no further commentary on the matter other than it is working with "leading cybsercurity firms." Customers are encouraged to contact the company's support team.

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Financial related cybercrimes have surged as of late given the profitable nature and sensitive information that can be obtained. Bloomberg reported that hackers who are thought to be in Ukraine infiltrated computer servers of PRNewswire, Marketwired, and Business Wire and siphoned more than 150,000 press releases (such as corporate data on earnings) to buy and sell securities of dozens of companies on information that was not intended for release to the public.

Other financial related cybercrimes include a massive breach at JPMorgan Chase & Co. JPM last year that compromised tens of millions of accounts. Data breaches at retailers including Target Corporation TGT and Home Depot Inc HD are still fresh in many investors and consumers' minds. Accordingly, it shouldn't have come as a surprise that investors were punishing FXCM's stock following its press release.

Shares of FXCM were trading lower by nearly 8 percent shortly after Thursday's opening bell.

Cybersecurity related stocks were mixed morning. Shares of Check Point Software Technologies Ltd. CHKP were higher by nearly 1 percent. The company is known to offer its services to at least one large financial services company that operates in foreign exchange. It is likely investors and traders were speculating the security firm may see a boost in demand for its products given its existing expertise within financial service firms.

Other cybersecurity firms saw a mixed reaction. Shares of FireEye Inc FEYE slightly dipped into negative territory, trading lower by 0.06 percent a few minutes into Thursday's session. At the same time, Qualys Inc QLYS's stock was lower by 0.70 percent while shares of Imperva Inc IMPV underperformed its peers by shedding 2.3 percent.