Charles Schwab announces TD Ameritrade data breach

investmentnews.com:

Charles Schwab Corporation, the parent company of TD Ameritrade, Inc.,has disclosed that it is just the latest company to suffer a data breach resulting from vulnerabilities found in MOVEit file transfer software. While the company claims that the computer systems of both companies remains unharmed, customer data stored on Ameritrade’s MOVEit server was compromised.

The incident is currently under investigation by both Schwab and Ameritrade, with a thorough analysis expected to be completed soon. Upon conclusion, Schwab says, affected customers will be notified.

This data breach holds significant implications, as it contributes to one of the largest breaches of 2023, affecting millions of Americans. The compromised information puts individuals at an increased risk of identity theft and other fraudulent activities. It is crucial for customers who receive a data breach notification from TD Ameritrade or Charles Schwab to understand the potential risks and take appropriate measures.

The cause of the breach stems from vulnerabilities discovered in the MOVEit software, which TD Ameritrade used on a limited basis. The incident came to light after the software’s developers detected a zero-day vulnerability.

Promptly responding to the potential security breach, TD Ameritrade ceased using MOVEit and promptly informed law enforcement. Simultaneously, an investigation was initiated to determine the scope of the breach and the specific client data that may have been exposed. Although this investigation remains ongoing, Schwab estimates that approximately 0.5 percent of Ameritrade’s clients may have been affected. That could mean up to 55,000 clients have been affected.

In a release, Schwab emphasized its commitment to providing