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LPL to pay $275K fine for hacking incidents

LPL to pay $275K fine for hacking incidents
LPL to pay $275K fine for hacking incidents 

By Sara Hansard
Investment News
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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