Scottrade Data Breach Hits 4.6M Customers, Contact Info Targeted

October is National Cyber Security Awareness Month and it kicked off with the wrong kind of bang as Scottrade announced a security breach. The investment accounts and brokerage services firm published a report about a hack that exposed 4.6 million clients to cybercriminals.

A federal investigation revealed that illegal activity involving its network occurred between late 2013 and early 2014, and targeted client names and street addresses, according to a Scottrade statement. Social Security numbers, e-mail addresses and other sensitive data were stored in the breached system, but it appears that the contact information was the hackerEUs main focus.

EUWe have no reason to believe that ScottradeEUs trading platforms or any client funds were compromised. Client passwords remained fully encrypted at all times and we have not seen any indication of fraudulent activity as a result of this incident,EU the company said in the statement. EUWe have secured the known intrusion point and conducted an internal data forensics investigation on this incident with assistance from a leading computer security firm. We have taken appropriate steps to further strengthen our network defenses.

This Is Mindboggling

We turned to Mark Bower, global director of product management, enterprise data security for HP Data Security, to get his reaction to the data breach. He told us itEUs almost mindboggling that yet another major data breach has been revealed in less than a week. He was referring to news of last week's Experian data breach that exposed 15 million T-Mobile customers to hackers.

EUIn this case, while the passwords may remain safe, one has to ask if the customersEU personal data was protected in the same manner,EU Bower said. EUWith the available technologies today to protect sensitive data very easily and quickly, itEUs a simple matter to cover all sensitive databases to protect consumer trust and satisfaction.EU

Bower said itEUs...

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