On July 7, 2023, Charles Schwab Corporation (“Schwab”), the parent company of TD Ameritrade, Inc. (“Ameritrade”), posted a notice explaining that recently-discovered vulnerabilities in the MOVEit file transfer software resulted in customer data being compromised. In this notice, Schwab notes that the computer systems of Schwab and TD Ameritrade were not affected; however, personal information belonging to certain customers was present on Ameritrade’s MOVEit server. Schwab and Ameritrade are still investigating the incident; however, once that investigation is complete, the companies will provide notice to all affected customers.
If you receive a data breach notification from TD Ameritrade, Inc. or Charles Schwab Corp., it is essential you understand what is at risk and what you can do about it. As we’ve discussed in other posts, collectively, the many MOVEit data breaches have compromised information belonging to millions of Americans, making it one of the largest data breaches of 2023. As a result, an incredible number of consumers across the country are now at an increased risk of identity theft and other frauds. A data breach lawyer can help you learn more about how to protect yourself from becoming a victim of fraud or identity theft as well as discuss your legal options following the TD Ameritrade data breach. For more information, please see our recent piece on the topic here.
What Caused the Data Breach Affecting TD Ameritrade Customers?
The TD Ameritrade data breach was only recently announced, and more information is expected in the near future. However, Schwab’s recent post provides some important information on what led up to the breach. According to this source, Ameritrade used the MOVEit software on a limited basis. Recently, Ameritrade learned of a security incident involving MOVEit after the company that developed the software discovered a zero-day vulnerability.
Once Ameritrade learned about the potential data security incident, it stopped using MOVEit and notified law enforcement. Ameritrade also launched an investigation to determine which clients were affected and what information was leaked. This part of the investigation is ongoing; however, Schwab notes that an estimated .5 percent of Ameritrade clients may have been affected.
In Schwab’s notice, the company indicates that Schwab and Ameritrade will continue to provide clients with updates as they become available and will communicate with them directly, as appropriate. This likely means that one of the two companies will be sending out data breach letters to affected clients in the near future.
More Information About TD Ameritrade, Inc.
Founded in 1971, TD Ameritrade, Inc. is a financial services company located in Omaha, Nebraska. Ameritrade provides securities brokerage and related financial services to retail investors, traders, and independent registered investment advisors throughout the United States. Originally a part of TD Bank Group, in 2020, TD Ameritrade was sold to Charles Schwab Corporation. TD Ameritrade employs more than 9,226 people and generates approximately $1.3 billion in annual revenue. Charles Schwab employs approximately 35,300 people and generates approximately $20 billion in annual revenue.
