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SEC Sanctions Several Companies Over Email Account Hacking

September 1, 2021

A total of eight entities belonging to three companies have been sanctioned by the SEC, including Cetera (Advisor Networks, Investment Services, Financial Specialists, Advisors, and Investment Advisers), Cambridge Investment Research (Investment Research and Investment Research Advisors), and KMS Financial Services.

According to the SEC, Cetera exposed the personal information of at least 4,388 customers and clients between November 2017 and June 2020. In this timeframe, unauthorized third parties managed to hack into more than 60 cloud-based email accounts belonging to Cetera staff. The SEC was also unhappy with the fact that the breach notifications sent out by some of the Cetera companies were misleading in regards to when the breach was disclosed.

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