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Morgan Stanley Pays $35 Million SEC Fine Over Data Security

  • SEC says brokerage unit didn’t properly dispose of devices
  • Customer data remained on items resold at auction, agency says
Gurbir Grewal

Gurbir Grewal

Photographer: Mark Kauzlarich/Bloomberg
Updated on

Morgan Stanley will pay $35 million to settle US Securities and Exchange Commission allegations that one of its units failed to secure the personal data of millions of customers when replacing company hard drives and servers.

The bank improperly disposed of thousands of devices and some were auctioned off online without checking that customer data they contained had been deleted, according to the SEC. About 15 million clients’ details were compromised over a five-year period starting 2015.