SEC fines broker-dealer $100,000 over computer security failures

Finextra reports:

US broker-dealer Commonwealth Financial Network has been fined $100,000 for failing to insist its registered representatives maintain anti-virus software on their computers. The failure led to an intruder gaining access to the firm’s Intranet, accessing customer accounts and entering unauthorised purchase orders worth over $523,000.

According to an SEC cease and desist order – first published by ZDNet – an intruder used a computer virus in November 2008 to obtain the login credentials of a Commonwealth registered representative.

Some time later that month, the intruder used the login credentials to enter Commonwealth’s Intranet site and view information on how to execute trades.


Photo credit: Jim Bourg/Reuters

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