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Fidelity Investments Faces Major Data Breach
Fidelity Investments has experienced a significant data breach, impacting more than 77,000 customers. As a large asset management firm, Fidelity’s vulnerability raises concerns about its cybersecurity measures. Although actual Fidelity accounts were not accessed, sensitive personal information—such as Social Security numbers and driver’s licenses—was compromised.
Incident Overview
According to a recent filing with Maine’s attorney general, Fidelity announced that unauthorized access to its systems occurred via two newly created customer accounts. The precise mechanism that allowed such access to thousands of customers’ data remains unclear.
Fidelity clarified that the breach was detected on August 19, leading to immediate action to terminate the unauthorized access. The event took place between August 17 and August 19, during which customer names and identifiers were accessed. This incident, though serious, represents a small fraction of Fidelity’s substantial customer base of 51.5 million.
Fidelity’s Response to the Breach
The company expressed its commitment to information security, stating, “We take this incident and the security of your information very seriously.” As part of its response, Fidelity is offering affected individuals free credit monitoring and identity restoration services for a duration of 24 months. Additionally, the company urges those impacted to routinely review their financial statements for any suspicious activity.
Tips for Protecting Yourself
1. Enable Two-Factor Authentication (2FA): Activating 2FA on your accounts can significantly enhance your protection. This security measure requires users to verify their identity through a secondary method, like a one-time code, in addition to a password.
2. Regular Financial Monitoring: It is crucial to frequently check your financial accounts for unauthorized activity, especially after a breach. Report any irregularities to your financial institution right away.
3. Update Passwords and Implement Strong Password Practices: Users should change passwords immediately if they are reused across different platforms. Adopt strong, unique passwords and consider using a password manager for better security.
4. Invest in Identity Theft Protection: Affected customers might benefit from identity theft protection services, which help monitor for unauthorized usage of personal information and assist with credit alerts.
5. Stay Aware of Phishing Attempts: Following a data breach, the likelihood of phishing scams increases. Always verify the legitimacy of correspondence requesting sensitive information and avoid clicking on questionable links.
6. Consider Personal Data Removal Services: While complete removal of personal data from the internet is challenging, data removal services can assist in managing your online presence and minimize exposure.
Conclusion
As a firm managing over $14 trillion in assets, Fidelity is under scrutiny to enhance its cybersecurity practices. The recent breach illustrates a potential lapse in security protocols, emphasizing the need for improved protective measures. Stakeholders are left questioning whether firms like Fidelity should face stricter penalties for data breaches to ensure better security practices and accountability in protecting customer information.
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