Is There Such a Thing as an Honest Hacker?

According to the Second Circuit, there just might be. In reviewing a district court’s denial of a preliminary injunction against an alleged computer hacker accused of insider trading, the court drew a distinction between two types of hackers: one who misrepresents her identity to gain access to a computer, and another who takes advantage of a security glitch to achieve the same end. The court suggested that the latter conduct might not be “deceptive” within the meaning of section 10(b) of the Securities and Exchange Act of 1934.