Apr 29, 2013
Machine-readable (only) checks and balances
In the wired world, feeds drive trading:
When the words "explosions" and "White House" popped up Tuesday on a verified Associated Press Twitter account, computers in the bare-bones offices of a New York City startup sprang into action.
The computers, housed in the Madison Avenue headquarters of a company called Dataminr, sent alerts to clients like hedge funds and government agencies about the apparent news. Shortly thereafter, the Dow Jones Industrial Average tumbled 145 points in seconds.
But the machines weren't fooled: Before the AP announced that the tweet was a hoax—its account had been hacked—Dataminr's computers generated a fresh alert saying the news may not be legitimate.