Morgan Stanley Fined $35 Million for Not Encrypting HDDs, Servers

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The Securities and Alternate Fee has fined Morgan Stanley Smith Barney (MSSB) for failing to guard its clients’ private figuring out info (PII) over a five-year interval. The SEC claims that Morgan Stanley not solely didn’t destroy its shoppers’ private information from laborious drives set to be decommissioned but in addition employed unqualified corporations to take action. 

The SEC has found that Morgan Stanley didn’t correctly eliminate storage gadgets containing its clients’ PII relationship way back to 2015. The fee additionally discovered that in a number of circumstances, Morgan Stanley contracted a “transferring and storage firm with no expertise or experience in information destruction providers” to retire hundreds of HDDs and servers containing the private info of hundreds of thousands of its shoppers. As an alternative of destroying the drives and server, the corporate bought them to a 3rd celebration, which bought them on an Web public sale. 

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