Did you give Scottrade your SSN?

Because their eCheck vendor got 0wned, and apparently stuff like your name and address, home phone number and mother’s maiden name and Social Security number (if you used it for authentication) is now up for sale in some shady IRC room, where participation is by invitation only.

We are contacting you to inform you that Scottrade has experienced a data security issue with the eCheck Secure service. Our records indicate that you have used eCheck Secure for the purpose of electronically moving funds from your bank to Scottrade. We will detail what we know about the situation and also what steps you should consider taking to safeguard your information.

On October 25, 2005, Troy Group Inc., the provider of the eCheck Secure service and other services to the financial services industry, reported to us that a computer hacker had compromised its eCheck Secure servers. As a result, some of your personal information, including your name, driver’s license or state ID number, date of birth, phone number, bank name, bank code, bank number, bank routing number, bank account number and Scottrade account number may have been compromised. If you used your Social Security number as your driver’s license or state ID number, your Social Security number may have been compromised as well. We do not know whether the hacker has actually accessed and/or used any of your personal information. However, Troy has notified us that it has blocked further unauthorized access to the information. The eCheck Secure service cannot be used to withdraw funds from your Scottrade account. Troy has filed a report with the FBI and is investigating in conjunction with a forensic analysis firm that it has retained. Scottrade has also contacted the FBI on this matter, and has a dedicated team to work on this issue and assist our customers who may have been affected.

Better watch those checking/savings accounts closer now.

Posted Thursday, November 24th, 2005 under Money, News.
  • Robert

    This is not totally true, it was not only scottrade, but Ameritrade also, along with many other campanies, and it is NOT actually known if any information was even taken. At least scottrade has told its customers!

  • Ken

    The letter quoted above was dated November 11, 2005, or 17 days after Troy Group, Inc., reported the incident to Scottrade. Could Scottrade have notified its clients electronically? Granted, a legitimate email from Scottrade might be hard to distinguish from a phishing attempt, but what about a simple instruction to log into the secure website for an important message? *After* receiving the letter, I logged into the Scottrade website, but could find no mention of the incident there.

  • Legality

    In the event of such a serious regulatory and legal matter, it would have been consumed and pored over by Scottrade’s legal counsel. Additionally, the weight of reputation in the finance world is huge; reputation is an asset with a fiscal value. Therefore, seventeen days is not unreasonable to make such a disclosure, especially in the face of the client backlash they may or may not suffer.