Ryan Neal of Financial Planning reported Wednesday, that Morgan Stanley has two current lawsuits against the company that allege that the company compromised sensitive client information. The Lawsuits allege that the company failed to fully wipe decommissioned computer equipment, which has gone missing. The two lawsuits have been filed by former Morgan Stanley clients who were notified of data breaches in early July.
Morgan Stanley closed two data centers in 2016 and hired a vendor to remove customer data from the equipment. Morgan Stanley was then notified that some devices still contained unencrypted data after they left the firm’s possession. The lawsuit states “The missing equipment and servers contain everything unauthorized third-parties need to illegally use Morgan Stanley’s current and former customers [information] to steal their identities and to make fraudulent purchases.” Neal writes that “Morgan Stanley has investigated the matter and is working with outside experts to understand the potential risks to clients.”
When electronic storage media is being retired or discarded, it is important that the information that is contained on those devices is securely wiped, and if the media is damaged or malfunctioning, that the device/storage media is destroyed. Securely wiping storage media ensures that the information contained on the device is unavailable to anyone who could get their hands on the discarded storage device. There are many methods of wiping data as well as tools and companies that can provide wiping and data destruction.
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Digital Forensics/Cybersecurity/Information Technology