Morgan Stanley Paying $35 Million to Settle Claims of Failing to Protect Customer Records

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Morgan Stanley Paying $35 Million to Settle Claims of Failing to Protect Customer Records
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Morgan Stanley will pay $35 million to settle allegations that some of its computer hardware was resold with customer data still on it, the SEC said

The $35 million fine levied against Morgan Stanley represents a steep penalty for an alleged record-keeping misstep.Updated Sept. 20, 2022 8:10 am ET

WASHINGTON— Morgan Stanley will pay $35 million 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 money-management firm agreed to pay the fine without admitting or denying wrongdoing, the SEC said.

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