Electronic Discovery Law

Posted at 10:48 AM on April 30, 2009 by K&L Gates

Centaurus Financial Fined $175,000 for Failing to Protect Confidential Customer Information

The Financial Industry Regulatory Authority (FINRA) announced this week that it has fined Centaurus Financial, Inc. $175,000 for failing to protect confidential customer information. Specifically, between August 2006 and July 2007 Centaurus failed to employ adequate safeguards against infiltration of its fax server containing the information at issue. Examples of the inadequate protection measures include the use of a “weak” username, “Administrator,” and the password “password.” The company’s safety failures resulted in unknown persons conducting a “phishing” scam hosted by Centaurus’s fax server. Additionally, Centaurus’s notification to customers regarding the breach in security was found to have been misleading.

To read the full text of FINRA’s press release regarding this decision, click here.

Trackbacks (0) Links to blogs that reference this article Trackback URL
http://www.ediscoverylaw.com/admin/trackback/128283

Comments (0) Read through and enter the discussion with the form at the end

This blog/Web site is made available by the contributing lawyers or law firm publisher solely for educational purposes to provide general information about general legal principles and not to provide specific legal advice applicable to any particular circumstance. By using this blog/Web site, you understand that there is no attorney client relationship intended or formed between you and the blog/Web site publisher or any contributing lawyer. The blog/Web site should not be used as a substitute for competent legal advice from a lawyer you have retained and who has agreed to represent you.

K&L Gates includes lawyers practicing out of more than 40 fully integrated offices located in North America, Europe, Asia, South America, and the Middle East, and represents numerous GLOBAL 500, FORTUNE 100, and FTSE 100 corporations, in addition to growth and middle market companies, entrepreneurs, capital market participants and public sector entities. For more information about K&L Gates or its locations and registrations, visit www.klgates.com.

Portions of this Web site may contain Attorney Advertising under the rules of some states. Prior results do not guarantee a similar outcome.

e-Discovery Analysis & Technology group at K&L Gates, offering services related to ediscovery, review of electronic documents, electronic discovery and electronic evidence discovery.
K&L Gates LLP
925 Fourth Avenue, Suite 2900, Seattle, Washington 98104-1158
p. 206.623.7580, f. 206.623.7022