[BreachExchange] Cetera latest to be hit with data breach of personal information

[Destry Winant]

https://www.investmentnews.com/article/20190613/FREE/190619958/cetera-latest-to-be-hit-with-data-breach-of-personal-information

Cetera Financial Group is the latest in a growing number of financial
advice firms to be hit with a data breach, putting information for
about 2,000 clients at risk.

The firm confirmed the number of clients whose information was
potentially compromised more than two months ago.

"On March 27, Cetera discovered that an unauthorized individual gained
access to the email accounts of two Cetera employees, which contained
some personal information," wrote company spokesperson Adriana Senior
in an email to InvestmentNews. "Cetera takes these incidents very
seriously, and took immediate action to secure the information and
accurately assess the full impact, including an extensive data
assessment process."

The firm did not provide any other information about the data breach.

A network of six broker-dealers that house close to 8,000 financial
advisers and registered reps, Cetera is offering clients who might be
affected a complimentary, two-year membership to an identity theft
protection and credit monitoring service.

In an email from Cetera Financial Specialists to advisers, the company
noted that "your clients' information continues to be of paramount
importance to all of us at Cetera Financial Specialists."

"Although we have no evidence to suggest your clients' personal
information has been misused, as a precaution we are notifying you and
your clients about the incident," stated the email, which did not have
a date on it.

It has become increasingly common for financial advice companies and
firms across the financial services industry to fall prey to
breakdowns in computer security that wind up revealing personal
information about clients or advisers.

For example, in February Voya Financial Advisors Inc. told its brokers
and financial advisers that a glitch on a biography webpage for its
brokers put their Social Security numbers at risk of exposure.

BlackRock Inc. made headlines in January when it was revealed that the
company accidentally exposed confidential information involving about
20,000 financial advisers.

And last month, InvestmentNews reported that Redtail Technology may
have exposed personal client information that advisers store on
Redtail's client relationship management software due to a data
breach.