Morgan Stanley Smith Barney says it has lost two CD-ROMs containing password-protected but not-encrypted data from investment clients. A spokesman for the brokerage says there’s no evidence that there was criminal intent in the breach, or that the information has been misused.

Credit.com reports the brokerage mailed the CDs to the New York State Department of Taxation and Finance. By the time the package reached the destination, the CDs were missing.

The state told Morgan Stanley Smith Barney about the breach on June 8, and the brokerage took two weeks to search facilities the package passed through before notifying clients June 24. In letters sent out to affected clients, the brokerage offered to pay for a year of Experian credit monitoring services.

Morgan Stanley Data Breach Hits Investors [Credit.com via Boing Boing]

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