Scottrade Becomes 2nd Breach in 1st Week of CyberSecurity Month

Oct. 8, 2015

Scottrade Becomes 2nd Breach in 1st Week of CyberSecurity Month While last week’s breach at Experian compromised the personally identifiable information of 15 million people, at least the company uncovered the intrusion itself. In August, the FBI showed up at the door of retail brokerage Scottrade informing the company it had been breached and client names and addresses stolen over several months in 2013 and 2014. At the direction of federal authorities, the company kept the matter private while the FBI wrapped up an investigation and publicly disclosed the breach on Oct. 5.

The company said 4.6 million clients were affected and that “it appears that contact information was the focus of the incident.” A statement on the Scottrade Website said Social Security numbers, email addresses and other sensitive data that existed on the company’s servers, not to mention the company’s trading platforms or customer funds, were not accessed.

“Based upon our internal investigation and information provided by the federal authorities, we believe a list of client names and street addresses was taken from our system, the statement said. “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.”