Scottrade Breach Hits 4.6 Million Customers (Updated)

Brian Krebs reports:

Welcome to Day 2 of Cybersecurity (Breach) Awareness Month! Today’s awareness lesson is brought to you by retail brokerage firm Scottrade Inc., which just disclosed a breach involving contact information and possibly Social Security numbers on 4.6 million customers.

In an email sent today to customers, St. Louis-based Scottrade said it recently heard from federal law enforcement officials about crimes involving the theft of information from Scottrade and other financial services companies.


Update: In a notification template posted to the California Attorney General’s site, Scottrade notes that they learned of the breach on August 26. They explain:

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. Importantly, we have no reason to believe that Scottrade’s trading platforms or any client funds were compromised. All client passwords remained encrypted at all times and we have not seen any indication of fraudulent activity as a result of this incident.

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 2013 and early 2014. 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.

It’s been a rough month for Scottrade. On September 25, Scottrade reported an unrelated data security breach to the New Hampshire Attorney General’s Office that involved 1099 statements being mis-mailed by a vendor to clients’ old addresses. That incident affected 1,240 client accounts.

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