Scottrade hack! Another victim of cyber attacks

5 October,, Lagos – Scottrade, the American based firm which majors in Financial services, discount brokerage, self-directed investing has announced a new discovery in regards to client information theft. The firm was recently informed by Federal law enforcement officials about an ongoing investigation into cybersecurity crimes involving the theft of information from Scottrade and other financial services companies.

The hack went unnoticed

Although not a recent occurrence, it is still of major concern as Scottrade hack seems to have gone unnoticed at the time of the happening. The firm clarifies that based on investigation and information provided by federal authorities, it is believed that the illegal activities involving their network occurred between late 2013 and early 2014, and targeted client names and street addresses.

Furthermore, it was clarified that Social Security numbers, email addresses and other sensitive data were contained in the system accessed. It appears that contact information was the main focus for the incident.

Clients funds uncompromised

As regards to client funds safety, it has been clarified that no compromise to client funds were discovered. According to them, client passwords remained fully encrypted at all times and we have not seen any indication of fraudulent activity as a result of this incident.

To ease the tension, Scottrade has decided publicly to take steps to contain the matter. The risk is being checked by securing the known intrusion point. Also, an internal data forensics investigation on this incident has been conducted, with assistance from a leading computer security firm. Aside these security measures, Scottrade also stated to take further steps to strengthen their network defences.

As a precautionary step, they have decided to notify and offer identity protection services to approximately 4.6 million clients whose information was in the targeted database. The message contained the following: “We take the security of the information entrusted to us very seriously and are fully cooperating with law enforcement in its investigation and efforts to bring the perpetrators to justice.”

Was I affected?

The report of Scottrade has provided several answers on the most FAQ upon the case. Such is the case for the repeatedly question: “was I affected?”, Scottrade replies the following:

“Current information indicates that the cybercriminals had unauthorized access to our network for a period of several months between late 2013 and early 2014. If you had an account previous to February 2014, your information may have been accessed through this incident. We are directly notifying everyone whose information was contained in the affected database so they are aware of what happened.”

For more information, questions and answers, please view the following cyber update of Scottrade. On a different note, FXCM was also a recent victim of a cyber attack and information theft, leading to a dip in the company’s shares.

Think we missed something? Let us know down in the comments section.

Share Your Opinion, Write a Comment