New York Legal professional Normal Letitia James and a coalition of 5 attorneys basic reached a $6.5 million settlement Thursday with Morgan Stanley Smith Barney LLC for compromising the non-public info of thousands and thousands of consumers nationwide.
In accordance with James’ workplace, Morgan Stanley “did not decommission its computer systems and erase unencrypted information in sure laptop gadgets that had been later auctioned whereas nonetheless containing shoppers’ private info, together with information belonging to 1.1 million New Yorkers.”
New York, based on James, will obtain $1,658,047 from the settlement and Morgan Stanley shall be required to strengthen its information safety measures.
The opposite states are Connecticut, Florida, Indiana, New Jersey and Vermont.
“Nobody ought to have their private info auctioned off with out their information as a result of an organization did not take fundamental steps to erase it earlier than promoting their outdated computer systems,” James stated in an announcement.
“Immediately’s settlement requires Morgan Stanley to bolster its cybersecurity so shoppers won’t ever once more need to danger their private information unintentionally being offered at an public sale,” James stated. “Corporations, huge and small, should all take their duty to guard their clients’ information critically, and if they don’t, my workplace will take motion.”
The two information incidents had been reported in July 2020.