News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Regulation

Morgan Stanley fined $35m after devices with customer details were auctioned off online

The SEC alleged that Morgan Stanley lost track of 42 computer servers that potentially contained unencrypted customer data

Morgan Stanley will pay $35m to settle allegations that it scrapped computer servers and hard drives without ensuring they no longer held sensitive customer information, regulators said.

Some of the computer hardware was resold with customer data still on it, according to the Securities and Exchange Commission. The brokerage and the money-management firm agreed to pay the fine without admitting or denying wrongdoing, the SEC said.

WSJ Logo