TD Ameritrade Hacked, Customer Data Compromised

TD Ameritrade has announced that they’ve been hacked and contact information including names, addresses, e-mail addresses and account activity information such as how many trades were conducted in the last month. Social Security Numbers, user names and passwords were not compromised, according to TD Ameritrade’s spokesperson.

Consumerist reader and commenter AngrySicilian forwarded us the email that TD Ameritrade sent to its customers:

September 14, 2007


You do not need to make any changes to your TD AMERITRADE accounts or to change the way you do business with us.

Dear ,

Let me tell you why I am sending you this email. While investigating client reports about the industry-wide issue of investment-related SPAM, we recently discovered and eliminated unauthorized code from our systems. This code allowed certain client information stored in one of our databases, including email addresses, to be retrieved by an external source.

Please be assured that UserIDs and passwords are not included in this database, and we can confirm that your assets remain secure at TD AMERITRADE.

What we want you to know:

  • Once we discovered the unauthorized code, we took immediate action to eliminate it. We are confident that we have identified the means by which the information was accessed and have taken appropriate steps to prevent this from reoccurring.

  • You continue to be covered by our Asset Protection Guarantee, which protects you and your assets from any unauthorized activity that may occur in your account through no fault of your own. If you lose cash or securities as a result of such activity, we will reimburse you for the cash or shares of securities you lost.

    While Social Security Numbers are stored in this particular database, we have no evidence to establish that they were retrieved or used to commit identity theft. To further protect you, we have hired ID Analytics, which specializes in identity risk, to investigate and monitor potential identity theft. ID Analytics provides identity risk services to many of the country’s largest banks and telecommunication companies, as well as government agencies. Following its initial evaluation, ID Analytics found no evidence of identity theft as a result of this data breach. We will retain its services on an ongoing basis to support your TD AMERITRADE accounts and to monitor for evidence of identity theft. We will alert and advise you if any is found. As always, we encourage you to remain alert in guarding your personal information, regularly review your account statements and monitor your credit activity from the major reporting agencies.

    For more information on protecting yourself against the possibility of security threats, please visit our online Security Center.

    We sincerely apologize to you for this situation and want to assure you that protecting the security and privacy of your assets and information remains a top priority. We have made and will continue to make significant investments in security software, systems and procedures, and we will remain vigilant about protecting you.

    We want to answer any questions and address any concerns that you may have about this matter. For more information, including a list of Frequently Asked Questions (FAQs) and an additional message from me, please go to http://www.amtd.com or contact Client Services. Please note that we are anticipating increased call volume during this period, which may lead to long wait times. We encourage you to review the FAQs and, if you have a question, to log on to your account and send us a secure email. Once again, please be assured that your assets are secure at TD AMERITRADE.

    Sincerely,

    Joe Moglia
    CEO
    TD AMERITRADE

  • The U.S. Federal Bureau of Investigation, the Securities and Exchange Commission and the Financial Industry Regulatory Authority are also investigating the data breach.

    TD Ameritrade says hacker stole customer info [USAToday]
    (Photo:en el houston)

    Comments

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    1. zippyglue says:

      Great security. Last time they lost a backup tape that included the social security numbers of thousands of customers, including me. They promised better security then too. Maybe it is time to find another brokerage.

    2. cindel says:

      WTF? Time to do my CR daily pulls and find another company.