Morgan Stanley settles data security lawsuit for $60 million

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US investment bank Morgan Stanley has paid $60 million in a lawsuit filed by some 15 million customers who were victims of a data breach. According to the duped customers, their personal information was not properly protected by the bank, Reuters said.

In both 2016 and 2019, there was a data breach at Morgan Stanley and the personal information of customers was exposed to unauthorized third parties. In 2016, Morgan Stanley closed two wealth management data centres and retired the computing equipment. The unencrypted equipment was sold to third parties and still contained customer data. It should have been dismantled first.

In 2019, customer personal data was again exposed to third parties. Some older servers containing customer data disappeared after Morgan Stanley sold them to another supplier. The bank later got the servers back.

Some 15 million customers have filed a lawsuit against Morgen Stanley. The American multinational has agreed to pay $60 million to settle the lawsuit. Reuters news agency reports that the victims will receive insurance against fraud for at least two years. The victims can also request compensation of up to $10,000.

The investment bank denies any wrongdoing. Since the data breach, the bank has implemented upgrades and security procedures.

Companies are increasingly becoming victims of data breaches. Large companies are especially sensitive to data leaks. In a data breach, the personal data of customers of that company is often stolen. Have you fallen victim to a data breach or hack? It is then extra important to be on the lookout for scammers. They can use your stolen data to contact you personally.

For example, a scammer can call you and pretend to be an employee of a bank. Also, be careful that you do not become a victim of identity theft or phishing. Never just click on links in emails or text messages

It is also important that you change your passwords. It is also always recommended to use two-step verification. For more tips, we refer you to the article ‘I was hacked: what now?’.

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