MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, April 21, 2005 Another Firm Copes with Lost Customer Data More and more fund firms and financial services companies making headlines, but for the wrong reason. Strong Funds, American Century, and now Ameritrade have all recently compromised the security of their customer data through theft or loss. Ameritrade, the most recent victim, lost a backup tape with customer data, (including Social Security numbers for some), while shipping it through a "third party vendor," reports the Wall Street Journal. The tape was lost when Ameritrade shipped four tapes using the vendor. While three tapes were recovered within the vendor's facility, one remains missing. "We don't believe any foul play was involved, and we're confident that none of our client accounts have been compromised or misused," Ameritrade spokeswoman Donna Kush told the Journal. "We have every reason to believe the fourth tape was damaged and destroyed within the facility," she continued. In the meantime, Kush said that the brokerage is no longer shipping customer data through third-party vendors, and is reevaluating its relationship with the shipper. Last week, Ameritrade notified the affected clients through a letter, which also informed customers that the firm was implementing additional security measures. The company is also offering more than 200,000 current and past clients a free one-year membership to an identity theft protection program. Printed from: MFWire.com/story.asp?s=9536 Copyright 2005, InvestmentWires, Inc. All Rights Reserved |