Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

9/26/2018
03:00 PM
50%
50%

SEC 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.

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.

Dark Reading's Quick Hits delivers a brief synopsis and summary of the significance of breaking news events. For more information from the original source of the news item, please follow the link provided in this article. View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Dr.T
50%
50%
Dr.T,
User Rank: Ninja
9/28/2018 | 9:41:46 AM
Reset password
For six months in 2016, cyberattackers impersonated VFA contractors by calling the firm's support line and requesting to reset passwords. This is a common problem, social engineering. Hard to prevent from in certain situations unles a good training program.
Dr.T
50%
50%
Dr.T,
User Rank: Ninja
9/28/2018 | 9:37:15 AM
Re: First of many
Fines are usually laughed off. I aggee better to have a fine that hurts otherwise it will be ok for most companies, they keep paying the fines instead of implementing security measures.
Dr.T
50%
50%
Dr.T,
User Rank: Ninja
9/28/2018 | 9:35:33 AM
Re: First of many
only a change in the C-Suite attitude of risk will do that and have resources allocated AND IMPLEMENTED FOR AGGRESSIVE MALWARE HUNTING and security walls. That is true but to change executives mind we need to have evidence of the troubles.
Dr.T
50%
50%
Dr.T,
User Rank: Ninja
9/28/2018 | 9:34:15 AM
Re: First of many
But fines won't fix the problem That is true but we need to start somewhere.
Dr.T
50%
50%
Dr.T,
User Rank: Ninja
9/28/2018 | 9:33:21 AM
Weak Security Policies
This is good news as organizations are going to think twice when they avoid cost of security implementations.
Sportialize
50%
50%
Sportialize,
User Rank: Apprentice
9/26/2018 | 5:53:58 PM
Re: First of many
Totally true !
REISEN1955
50%
50%
REISEN1955,
User Rank: Ninja
9/26/2018 | 3:40:47 PM
First of many
But fines won't fix the problem - only a change in the C-Suite attitude of risk will do that and have resources allocated AND IMPLEMENTED FOR AGGRESSIVE MALWARE HUNTING and security walls.  Fines are usually laughed off.  And watch the SEC be hacked soon too as they are a GOVERNMENT body probaby running S/370 IBM MAINFRAMES too.  
Why AI Will Create Far More Jobs Than It Replaces
John DiLullo, CEO, Lastline,  5/14/2019
Baltimore Ransomware Attack Takes Strange Twist
Kelly Jackson Higgins, Executive Editor at Dark Reading,  5/14/2019
Windows 10 Migration: Getting It Right
Kevin Alexandra, Principal Solutions Engineer at BeyondTrust,  5/15/2019
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
Building and Managing an IT Security Operations Program
As cyber threats grow, many organizations are building security operations centers (SOCs) to improve their defenses. In this Tech Digest you will learn tips on how to get the most out of a SOC in your organization - and what to do if you can't afford to build one.
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2019-11809
PUBLISHED: 2019-05-20
An issue was discovered in Joomla! before 3.9.6. The debug views of com_users do not properly escape user supplied data, which leads to a potential XSS attack vector.
CVE-2019-12198
PUBLISHED: 2019-05-20
In GoHttp through 2017-07-25, there is a stack-based buffer over-read via a long User-Agent header.
CVE-2019-12185
PUBLISHED: 2019-05-20
eLabFTW 1.8.5 is vulnerable to arbitrary file uploads via the /app/controllers/EntityController.php component. This may result in remote command execution. An attacker can use a user account to fully compromise the system using a POST request. This will allow for PHP files to be written to the web r...
CVE-2019-12184
PUBLISHED: 2019-05-19
There is XSS in browser/components/MarkdownPreview.js in BoostIO Boostnote 0.11.15 via a label named flowchart, sequence, gallery, or chart, as demonstrated by a crafted SRC attribute of an IFRAME element, a different vulnerability than CVE-2019-12136.
CVE-2019-12173
PUBLISHED: 2019-05-18
MacDown 0.7.1 (870) allows remote code execution via a file:\\\ URI, with a .app pathname, in the HREF attribute of an A element. This is different from CVE-2019-12138.