Data Breach Affects 34,000 Morgan Stanley Clients

Financial services provider Morgan Stanley Smith Barney has warned about a data breach affecting 34,000 of its customers.

The firm sent out warning letters to affected customers, informing that their account numbers, tax data, addresses and other sensitive information like social security numbers may have been stolen.

The data was stored in two discs which were password protected but were not encrypted though. The CDs were in a package sent to the New York State Department of Taxation and Finance, but they were missing when the package was opened at the destination. The package itself was in tact when it arrived, showing no signs of theft.

The company informed the affected customers about the data breach two weeks after it was notified, after conducting its own investigation. Morgan Stanley has offered free credit monitoring services to the customers whose social security numbers have been leaked because of the data breach.

“There’s no evidence that there was any criminal intent here, or actual misuse of this information. We’re going to work with the state to see if we can improve the security of this data transmission,” Jim Wiggins, a spokesman for Morgan Stanley told Credit.com.