Ulasan intern scottrade
All client passwords remained encrypted at all times and we have not seen any indication of fraudulent activity as a result of this incident. FBI officials could not be immediately reached for comment. It may well be that the intruders were after Scottrade user data to facilitate stock scams, and that a spike in spam email for affected Scottrade customers will be the main fallout from this break-in.
In July , prosecutors in Manhattan filed charges against five people — including some suspected of having played a role in the breach at JPMorgan Chase that exposed the contact information on more than 80 million consumers. Readers who are concerned about protecting their credit files from identity thieves should read How I Learned to Stop Worrying and Embrace the Security Freeze.
Scottrade breach , Shea Leordeanu. This entry was posted on Friday, October 2nd, at 2: You can follow any comments to this entry through the RSS 2. Both comments and pings are currently closed.
This is classical penny stocks pump the price motivated attack but on the much lower scale than the J. If all it will be interesting to see how long it takes them to notify everyone, nothing in my e-mail yet.
Having moved a number of brokerage accounts for my mother this spring, I was surprised how easy and free it is to move accounts from one brokerage house to another. I suggest that customers impacted by this breach vote with their mouses and move to a house that seriously values the protection of customer assets and PII. Yea, they encrypted my password; wait my Social Security Number was not encrypted?? Tyro and encrypting from the PIN pad through to the bank, such that the POS equipment never ever even sees the full card details and the PIN pad firmware updates are controlled by the supplying bank or processor.
Some exceptions around things like car park terminals, but generally an in store experience here is going to involve a bank or processor provided terminal. I realise people are daft and fall for Nigerian princes, but how on earth do penny stock scams actually work?
What am I missing here? Is it really that easy to do on your own with no interaction with a broker? How do you make money on penny stock scams, see Def Con 17 presentation Stealing Profits from Stock Market Scammers on YouTube for an outline of how it is was done in the past. Two kinds of people fall for pump-and-dump scams: We are writing to share with you important information about a security compromise involving a database containing some of your personal information, as well as steps we are taking in response, and the resources we are making available to you.
We immediately initiated a comprehensive response. Based upon our subsequent internal investigation coupled with information provided by the authorities, we believe a list of client names and street addresses was taken from our system. Although Social Security numbers, email addresses and other sensitive data were contained in the system accessed, it appears that contact information was the focus of the incident. The unauthorized access appears to have occurred over a period of several months between late and early We 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. Federal authorities had requested that they be allowed to complete much of their investigation before we notified clients. In coordination with them, we are now able to alert you of this incident. We are fully cooperating with law enforcement in their investigation and prosecution of the criminals involved. Notices like this one are being sent to all individuals and entities whose information was contained in the affected database, and we have included here information about steps you can take to protect yourself.
Information about this incident is available online at https: As always, we encourage you to regularly review your Scottrade and other financial accounts and report any suspicious or unrecognized activity immediately. As recommended by federal regulatory agencies, you should remember to be vigilant for the next 12 to 24 months and report any suspected incidents of fraud to us or the relevant financial institution. Please also read the important information included on ways to protect yourself from identity theft.
We encourage clients to be particularly vigilant against email or direct mail schemes seeking to trick you into revealing personal information. Never confirm or provide personal information such as passwords or account information to anyone contacting you. Please know that Scottrade will never send you any unsolicited correspondence asking you for your account number, password or other private information. If you receive any letter or email requesting this information, it is fraudulent and we ask that you report it to us at phishing scottrade.
Be cautious about opening attachments or links from emails, regardless of who appears to have sent them. As a precaution, Scottrade has arranged with AllClear ID to help you protect your identity at no cost to you for a period of one year.
You are pre-qualified for identity repair and protection services and have additional credit monitoring options available, also at no cost to you. You can call AllClear ID with any concerns about your identity at This hotline is available from 8: We offer this out of an abundance of caution so that you have the information you need to protect yourself. We are very sorry that this happened and for any uncertainty or inconvenience this has caused you.
We know that incidents like these are frustrating. We take the security of your information very seriously and are committed to continually strengthening and evolving our defenses based on new and emerging threats. We have arranged to have AllClear ID help you protect your identity for one year at no cost to you, effective Oct.
The team at AllClear ID is ready and standing by if you need identity repair assistance. This service is automatically available to you with no enrollment required.
If a problem arises, simply call You may sign up online at https: Additional steps may be required by you in order to activate your phone alerts and monitoring options.
Regularly review statements from your accounts and periodically obtain your credit report from one or more of the national credit reporting companies. You may obtain a free copy of your credit report online at http: Annual Credit Report Request Service. Box , Atlanta, GA, You may also purchase a copy of your credit report by contacting one or more of the three national credit reporting agencies listed below. Box , Atlanta, Georgia Box , Allen, TX , 1. Box , Chester, PA A fraud alert notifies potential lenders to verify your identification before extending credit in your name.
You may wish to request a security freeze on your credit reports. However, please be aware that placing a security freeze on your credit report may delay, interfere with, or prevent the timely approval of any requests you make for new loans, credit mortgages, employment, housing or other services.
If you have been a victim of identity theft, and you provide the credit reporting agency with a valid police report, it cannot charge you to place, lift or remove a security freeze. To place a security freeze on your credit report, you must send a written request to each of the three major consumer reporting agencies by regular, certified or overnight mail at the following addresses:. The credit reporting agencies have three business days after receiving your request to place a security freeze on your credit report.
The credit bureaus must also send written confirmation to you within five business days and provide you with a unique personal identification number PIN or password, or both that can be used by you to authorize the removal or lifting of the security freeze. To lift the freeze to allow a specific entity or individual access to your credit report, you must call or send a written request to the credit reporting agencies by mail and include 1 proper identification name, address, and Social Security number , 2 the PIN number or password provided to you when you placed the security freeze; and 3 the identities of those entities or individuals you would like to receive your credit report or the specific period of time you want the credit report available.
The credit reporting agencies have three business days after receiving your request to lift the security freeze for those identified entities or for the specified period of time.
To remove the security freeze all together, you must send a written request to each of the three credit bureaus by mail and include proper identification name, address, and Social Security number and the PIN number or password provided to you when you placed the security freeze.
The credit bureaus have three business days after receiving your request to remove the security freeze. Get a copy of the report to submit to your creditors and others that may require proof of a crime.
The FTC provides useful information to identity theft victims and maintains a database of identity theft cases for use by law enforcement agencies.
Start a file with copies of your credit reports, the police reports, any correspondence, and copies of disputed bills. It is also helpful to keep a log of your conversations with creditors, law enforcement officials, and other relevant parties. Take Steps to Avoid Identity Theft. Further information can be obtained from the FTC about steps to take to avoid identity theft through the following paths: Maryland residents can learn more about preventing identity theft from the Maryland Office of the Attorney General, by visiting their web site at http: North Carolina residents can learn more about preventing identity theft from the North Carolina Office of the Attorney General, by visiting their web site at http: Massachusetts residents are reminded that you have the right to obtain a police report and request a security freeze as described above.
There is no charge, however, to place, lift or remove a security freeze if you have been a victim of identity theft and you provide the consumer reporting agencies with a valid police report. Could this be part of one gang, who were following a trail? FINRA has advised firms that in designing their AML program, they should consider factors such as their size, location, business activities, the types of accounts they maintain and the types of transactions in which their customers engage.
FINRA also has instructed on-line firms such as Scottrade to consider conducting computerized surveillance of account activity to detect suspicious transactions. From April through January , Scottrade did not have any systematic or automated program designed to detect potentially suspicious money movement or securities transactions.
Instead, the firm used a manual system to monitor accounts for suspicious activities. This system relied almost exclusively on internal personnel, including branch, cashiering and margin employees, to identify and refer potentially suspicious activity to the firm's risk management department for further review.
In June , the firm hired a risk management analyst to assist with this review. Neither the compliance officer, the analyst nor anyone else at Scottrade specifically monitored transactions for potentially suspicious trading activity. FINRA found that the sheer volume of on-line trading, along with the firm's reliance on inadequate internal resources, rendered the lack of an automated system to detect suspicious activity unreasonable.
In February , Scottrade implemented a proprietary, automated system to monitor for suspicious transactions that was inadequate because it was primarily designed to monitor for and detect suspicious money movement.
Under Scottrade's automated filter-based system, when suspicious activity triggered one of the filters, it generated an alert to the AML analysts responsible for investigating the alerts.
The analysts only reviewed for potentially suspicious trading activity if there was money movement into or out of an account that independently triggered one of the filters. On average, 1, alerts were generated monthly, but not all alerts were reviewed. In September , the firm implemented a proprietary volume report for purposes of detecting "pump-and-dump" account intrusions and unauthorized trading activity resulting from such account intrusions.