By Sara Hansard
September 15, 2008
LPL Financial has agreed to pay a $275,000 penalty for violating
customers' privacy, the Securities and Exchange Commission said
In July 2007, at least 10,000 customers were left vulnerable to identity
theft following a series of hacking incidents into Boston-based LPL's
online trading platform as a result of the brokerage firm's failure to
adopt policies and procedures to safeguard customers' personal
information, the SEC said in a statement (InvestmentNews, July 8).
LPL, which has more than 1 million customer accounts, agreed to pay the
fine without admitting or denying the findings.
In mid-2006, LPL conducted an internal audit that identified inadequate
security controls at its branch offices and specifically identified a
risk from hacking, according to the SEC. But LPL failed to take timely
corrective action, the SEC said.
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