Regulators last year issued the SEC’s first-ever privacy fine against broker-dealer GunnAllen for failing to protect customer data. But former IT staffers say regulators didn’t seem to know half of this cautionary tale of outsourcing and oversight gone wrong. Mathew J. Schwartz adds some mind-boggling details to the case: Dan Saccavino, a former Revere Group…
Category: Financial Sector
AU: Thousands siphoned in bank ID scam
Peter Bodkin reports on an insider breach in the financial sector: Three men who committed a “sophisticated” identity-theft scam siphoned thousands of dollars from the accounts of unsuspecting bank customers using confidential inside information. Jason Urrutia, 36, an IT manager with five years experience at the Commonwealth Bank used his role with the company to…
The staggering cost of a data breach
Occasionally, I check Global Payments’ site for information on what their breach(es) last year cost them. Here’s what they reported in their SEC 10-K/A filing today: For the year ended May 31, 2012, we have recorded $84.4 million of expense associated with this incident. Of this amount, $19.0 million represents the costs we have incurred…
Chase’s servers compromised
High-end jewelry firm Tiffany & Co. reports an incident involving unauthorized access to JPMorgan Chase Bank’s servers. The compromised servers contained information on a Tiffany employee travel expense reimbursement system, and held the employees’ names, addresses, Social Security numbers and banking account information. In its letter to the New Hampshire Attorney General’s Office on September…
Transcend Capital notifies clients after server hacked last month
Transcend Capital reports that its data server in Austin Texas was hacked during the week of August 20th. The compromised server held clients’ name, physical and e-mail addresses, Social Security numbers, telephone numbers, security positions and cash positions. In a notification to the California Attorney General’s Office, James Kupfer, Chief Compliance Officer, notes that the…
Hack of Red Boat Advisor Resources server containing brokerage account applications
Lincoln Financial Securities Corporation reports that the virtual server of one of their independently-owned financial planning offices, Red Boat Advisor Resources, was accessed some time between January and early April of this year. In their letter dated August 30 to the New Hampshire Attorney General’s Office, LFS’s attorneys write that the server held TIFF images…