Lincoln Financial Hit With $650,000 Fine For Client Exposure to Foreign Hackers

According to a recent InvestmentNews article, the Financial Industry Regulatory Authority (FINRA) fined one of Lincoln Financial Network’s independent broker-dealers $650,000 for failing to reasonably safeguard confidential customer data and exposing thousands of clients’ records to foreign hackers. FINRA also found that the firm failed to reasonably retain reports of client account information and assets, known as consolidated reports in the industry. This occurred from at least 2011 until 2015, with “hackers with foreign internet protocol addresses were able to access a cloud server” at a branch of the firm, “exposing the confidential records and information of approximately 5,400 customers,” according to the settlement. It also stated that from 2010 until 2013, the firm also failed to maintain and enforce a supervisory system reasonably designed to ensure the preservation, retention and review of consolidated reports produced by registered representatives and provided to clients. Please call our securities law firm today to speak to an attorney if you suffered investment losses with Lincoln Financial. The call is free.

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