Several of Wall Street's most prominent hedge funds have been targeted in a coordinated wave of cyberattacks that used artificial intelligence to clone voices and trick employees into divulging sensitive information. The firms affected include Point72 Asset Management, Millennium Management, Two Sigma Investments and Citadel, according to a Bloomberg report on Wednesday.
Point72 has informed its investors of the attack, though an initial review found no evidence that client data was compromised, and the firm said it continues to investigate. Spokespeople for Millennium, Point72 and Citadel declined to comment. Two Sigma, which oversees roughly $75 billion in assets, said it successfully blocked the intrusion. The technique, known as "vishing," combines voice phishing with AI-generated audio to impersonate trusted individuals over the phone.
"Our security team responded quickly to an attempted vishing campaign targeting Two Sigma and other investment managers, and we have no indication of any impact to our data or our systems," a Two Sigma spokesperson said. "We continue to monitor the situation closely."
The Financial Industry Regulatory Authority has been in contact with member firms about the attempted breaches, according to a person familiar with the matter. The regulator's Financial Intelligence Fusion Center, launched in March 2026, is designed to help firms share threat intelligence and coordinate responses. Several private equity firms were also targeted in the same assault, Bloomberg reported.
AI lowers the cost of attack
The incidents underscore a broader shift in the cybersecurity landscape for financial services. Vinod Paul, president of Align Managed Services, a cybersecurity firm focused on hedge funds, told Bloomberg that AI tools have dramatically reduced the barrier to launching large-scale targeted attacks. "Before they could attack 50 entities in a targeted attack, now they can do 1,000," he said. "Hackers can also listen into a phone call and mimic the voice, tone and phrasings of the speakers to create fake calls."
Will Wilson, chief executive of Antithesis, a software firm backed by Jane Street, said AI has restructured cyberattacks. "The terrifying thing about modern-day AI systems is that they have commoditized this and made it possible to execute attacks at scale," he told Bloomberg. "Everybody will have to seriously level up. Otherwise they are going to be in big trouble."
The attack on hedge funds comes as U.S. authorities are also working to contain separate cyberattacks on water systems in several states, though officials have not confirmed any connection. In June 2026, Google's cybersecurity unit flagged a similar vishing wave targeting law firms and professional services companies, in some cases involving individuals who physically entered corporate offices posing as IT workers.
The hedge fund attacks add to a string of cybersecurity incidents hitting wealth management firms this year. AI-powered social engineering has accelerated throughout 2026, affecting advisory firms of all sizes. Mega-RIA Mariner recently disclosed a cloud breach impacting nearly 9,000 individuals, and Mercer has faced class action litigation following a separate breach linked to the ShinyHunters attack group. Other firms targeted this year include Hightower Advisors, Edelman Financial Engines, Beacon Pointe, CW Advisors, Betterment, Pathstone, EP Wealth, Cetera and Ameriprise.
For advisors, the rise of AI-driven vishing highlights the need for robust verification protocols and employee training. As AI compliance testing becomes more common, firms are also investing in advanced threat detection. The Federal Reserve's recent rate decision may dominate headlines, but cybersecurity remains a top operational risk for financial institutions.
