Voya Settles With Payout in First-Ever SEC Identity Cyber Theft Case
September 28, 2018 by Alex Padalka
The SEC has settled with Voya Financial Advisors to the tune of $1 million over the firm’s alleged failures to protect its clients against identity theft. And the case is the first time the regulator has enforced its Identity Theft Red Flags Rule, according to a press release from the SEC.
During a six-day period in 2016, cyber fraudsters allegedly impersonated Voya contractors when calling the firm’s support line to request that the firm reset the contractors’ passwords, the regulator says.
Using the new passwords, the fraudsters then allegedly obtained personal information on 5,600 Voya clients and used them to create new customer profiles online, according to the press release.
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