8:02:19 PM PDT - Wednesday, October 5th, 2022

Morgan Stanley to pay $35M after hard drives with 15M customers’ personal data turn up in auction  

By Editor - Wed Sep 21, 7:55 am

  • Comments Off on Morgan Stanley to pay $35M after hard drives with 15M customers’ personal data turn up in auction

The U.S. Securities and Exchange Commission has agreed to settle charges against Morgan Stanley Smith Barney (MSSB) for its “astonishing” failure to protect the personal identifying information of some 15 million customers. MSSB, now known as Morgan Stanley Wealth Management, is the wealth and asset management division of banking giant Morgan Stanley, which this week agreed to pay $35 million to settle allegations that it failed to properly dispose of hard drives and servers containing its customers’ personal data over a five-year period as far back as 2015. Morgan Stanley hired a moving and storage company with “no experience or expertise in data destruction services,” according to the SEC, and failed to properly monitor the moving company’s work. Some of the hard drives were later found on an internet auction site with customers’ personal data still stored within. “While MSSB recovered some of the devices, which were shown to contain thousands of pieces of unencrypted customer data, the firm has not recovered the vast majority of the devices,” the SEC said in a statement . The SEC also alleged that Morgan Stanley lost track of 42 servers that potentially contained unencrypted customer data when it decommissioned local office and branch servers as part of a hardware refresh program.

Read more:

Morgan Stanley to pay $35M after hard drives with 15M customers’ personal data turn up in auction

  • Comments Off on Morgan Stanley to pay $35M after hard drives with 15M customers’ personal data turn up in auction

Leave a Reply

Comments are closed on this post.