Scottrade Data Breach Compromises 4.6 Million Users

Scottrade Data Breach Compromises 4.6 Million Users

Names and street addresses stolen

Discount stock trading service Scottrade announced on Friday that it was hacked and information on 4.6 million customers was compromised.

 

Scottrade was allegedly unaware of the breach until August of 2015, when they informed of its existence by the FBI. The perpetrators remain unknown.

 

In a statement published on the company website, Scottrade acknowledged that, based on information from a combination of Federal law enforcement sources and internal investigations, a breach in Scottrade’s network occurred “between late 2013 and early 2014.” However, the announcement is also quick to note that while social security numbers, email addresses and other sensitive data were housed on the compromised system, client names and street addresses appeared to be the main information targeted.

 

The company stresses that no trading information was pilfered, noting:

 

“We have no reason to believe that Scottrade’s 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.”

 

As a precautionary measure, Scottrade will be notifying all of clients whose information was housed on the targeted database and offering them a year of complimentary identity protection services.

 

October 2015 has been designated as National Cyber Security Awareness Month. This announcement makes for an inauspicious beginning.

TAGS: Industry
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