SEC Slams Firm with $1M Fine for Weak Security PoliciesSEC Slams Firm with $1M Fine for Weak Security Policies
This is the first SEC enforcement cracking down on violation of the Identity Theft Red Flags Rule, intended to protect confidential data.
September 27, 2018
The Securities and Exchange Commission (SEC) has issued a $1 million fine against a Des Moines-based organization for failing to implement sufficient security policies related to an incident that compromised personal data belonging to thousands of customers.
Voya Financial Advisors, Inc. (VFA), a broker-dealer and investment adviser, was charged with violating the Safeguards Rule and Identity Theft Red Flags Rule, both of which are intended to protect personal data and protect customers from identity theft. This marks the first time the SEC has enforced the Identity Theft Red Flags Rule with a penalty against an offending firm.
For six months in 2016, cyberattackers impersonated VFA contractors by calling the firm's support line and requesting to reset passwords. With new passwords, the actors were able to gain access to personal data of 5,600 VFA customers. The SEC found the attackers used this information to create new online user profiles and gain unauthorized access to account documents. Its order states the VFA failed to shut down attackers' access due to weaknesses in its security procedures, and it also failed to ensure the security of contractors' systems.
VFA has agreed to pay the $1 million fine and will consult an independent expert to evaluate its policies and procedures, and ensure future compliance with both rules, the SEC reports.
Read more details here.
Black Hat Europe returns to London Dec 3-6 2018 with hands-on technical Trainings, cutting-edge Briefings, Arsenal open-source tool demonstrations, top-tier security solutions and service providers in the Business Hall. Click for information on the conference and to register.
About the Author(s)
You May Also Like
Hacking Your Digital Identity: How Cybercriminals Can and Will Get Around Your Authentication MethodsOct 26, 2023
Modern Supply Chain Security: Integrated, Interconnected, and Context-DrivenNov 06, 2023
How to Combat the Latest Cloud Security ThreatsNov 06, 2023
Reducing Cyber Risk in Enterprise Email Systems: It's Not Just Spam and PhishingNov 01, 2023
SecOps & DevSecOps in the CloudNov 06, 2023