June 8, 2016
Posted August 1, 2016
Morgan Stanley Smith Barney LLC will pay a $1 million penalty to settle charges related to its failures to protect customer information, some of which was hacked and offered for sale online. As a result of failures to adopt policies and procedures reasonably designed to protect customer data, from 2011 to 2014, a then-employee impermissibly accessed and transferred data regarding approximately 730,000 accounts to his personal server which was ultimately hacked by third parties. SEC
Tagged in: Cybersecurity and Data Breaches, Regulatory Violations, Securities Fraud,