Suing Lincoln Financial Securities Corp for Illegal Hacking

The Financial Industry Regulatory Authority (FINRA) recently fined Lincoln Financial Securities Corp (LFS) $650,000 for its failure to adequately supervise third-party vendors tasked with electronic storage of customer records and electronic preservation and retention of customer consolidated reports, and other cyber risk compliance lapses. This comes after 2012, when foreign hackers accessed 5,400 customer confidential records and information. Allegedly, LFS had certain procedural, administrative and information technology data security deficiencies that occurred before and after the attack. In addition, LFS was the subject of a 2011 Letter of Acceptance, Waiver and Consent (AWC) with FINRA, because of cybersecurity failures related to the safeguarding of customer records and information under the Securities Exchange Act of 1934. Specifically, LFS allegedly failed to adopt WSPs regarding the storage of customer data on cloud-based systems. Additionally, FINRA found that LFS did not adequately test and verify the security of information that could be stored on cloud-based servers, and therefore would not be able to tell if a computer server was breached. Please call our securities law offices today if you invested money with Lincoln Financial Securities Corp and would like a free consultation with one of our attorneys about your options. Please call today.

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