Financial Industry Regulatory Authority has fined the Lincoln Financial Securities Corp. $650,000 and requested the company to increase its cybersecurity protocols after hackers accessed its cloud-based server in 2012, Hunton & Williams reports. Thieves were able to steal an estimated 5,400 customers' account applications and other "nonpublic personal information," the report states. While LFS notified the victims and FINRA and thus far hackers haven't used the information for fraudulent actvitiy, FINRA countered "that LFS failed to implement and maintain adequate cybersecurity procedures, including written supervisory procedures, designed to protect confidential customer information stored on electronic systems in violation of FINRA Rules 3110 and 2010," the report adds. This is the second enforcement action LFS has faced.
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