Penalty Amount
$6,500,000
Morgan Stanley failed to properly decommission computer devices containing unencrypted customer data, leading to the sale of devices with personal information at auction and missing servers with potential data. A multistate coalition secured a $6.5 million settlement requiring Morgan Stanley to implement enhanced data security measures.
Morgan Stanley must pay a $6.5 million fine and adopt a comprehensive information security program, including encryption, incident response plans, hardware tracking, and vendor risk assessments.
In-house legal teams should review vendor agreements, especially those involving data destruction, asset disposal, or IT decommissioning services, to ensure they include specific clauses on data security standards, encryption requirements, vendor monitoring, and liability for data breaches. Customer agreements may need enhancements to data protection obligations, and internal policies should address hardware inventory controls and decommissioning procedures. Changes could involve mandating security certifications for vendors, implementing rigorous audit trails for disposed assets, and adding clear remedies for unauthorized data access to prevent incidents like unencrypted data being sold at auction or missing servers.
Entity
Morgan Stanley Smith Barney LLC
Also known as: Morgan Stanley
Industry
Financial ServicesOfficial Press Release
https://ag.ny.gov/press-release/2023/attorney-general-james-and-multistate-coalition-secure-65-million-morgan-stanley
morgan stanley aod
https://ag.ny.gov/sites/default/files/settlements-agreements/morgan-stanley-aod.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"Morgan Stanley Smith Barney LLC (Morgan Stanley)"
"a $6.5 million fine"
"Morgan Stanley failed to decommission its computers and erase unencrypted data in certain computer devices that were later auctioned while still containing consumers’ personal information"
$240K
The New York Attorney General investigated a group of debt buyers for filing foreclosure actions seeking payment of long-expired mortgage debts. The companies agreed to pay $240,000 in penalties and more than $242,000 in consumer restitution, stop seeking payment of time-barred debts, and amend claims in pending foreclosure cases.
$240K
New York Attorney General Letitia James reached an agreement with debt buyers that allegedly filed foreclosure lawsuits seeking payment on expired mortgage debt. The companies must pay $240,000 in penalties and more than $242,000 in restitution, and stop seeking expired payments in ongoing and future cases.
$6.0M
The New York Attorney General secured disgorgement settlements totaling $5,975,861 from four promoters of NovaTech and AWS Mining over fraudulent investment claims and an illegal pyramid scheme. The promoters were permanently banned from the securities, commodities, and cryptocurrency industries; the Attorney General separately asked the court to order NovaTech’s founders to pay $1.3 billion, which was not yet an order.
$98K
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$2.6M
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