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Scottrade Breach: Identified by Federal Officials

October 5, 2015

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security data breach Late afternoon on October 2nd, news leaked out of another large security data breach, now at Scottrade. The identity count of records, in the millions again (4.6 million is the latest). This breach comes on the second day of national CyberSecurity month, the first being Experian/T-Mobile breach. Now unlike any other breach in recent days, this one has a noticeable and major twist. Scottrade did not identify the breach themselves and their security defenses did not detect that data was being extracted. Instead, federal officials approached Scottrade and informed them that they have a problem. For the first time, all the layers put in place failed, including the human components of an organization, failed. The question then becomes, was this a new Advanced Persistent Threat that circumvented all of their security or was security lax enough that the inflitration occured just like many of the other recent breaches we read about everyday. It surely supports the statistics the most executives believe they have been breached and did not know about it. Obtaining details on this breach, just like Anthem, Target, Sony, Carbanak Bank, etc. will be provide critical lessons on how to design and implement the proper security defenses in addition to best practices. As you can see, CyberSecurity month is starting with a bang. Personally, over the weekend, I received a letter from one of my credit card providers indicating yet another merchant was breached and I should be vigilant about checking my credit card account for fraud. While the letter assured me I will not be responsible for any fraudulent charges and extra security profiling has been added to my account, I can only imagine where the next big breach will come from and who will be affected. As a case in point, fallout from Experian is just materializing and it is important to note that it was T-Mobile data hosted by Experian that was compromised and not T-Mobile themselves. Vendor specific data hosted by another company and both are grossly affected. Thus, we have two business days into the month, two major data breaches announced, and countless little compromises warranting consumer notification of specific problems. If the trend holds, things are shaping up for an interesting month. As these situations evolve, BeyondTrust will continue to monitor this data breach (and others) and provide updates via our blogs and media outlets. If you have any questions on how BeyondTrust can help secure privileged access to sensitive data, which everyone knows is the crux of whats being leaked, please feel to contact us here.
Photograph of Morey J. Haber

Morey J. Haber, Chief Technology Officer and Chief Information Security Officer at BeyondTrust

Morey J. Haber is Chief Technology Officer and Chief Information Security Officer at BeyondTrust. He has more than 25 years of IT industry experience and has authored four Apress books: Privileged Attack Vectors (2 Editions), Asset Attack Vectors, and Identity Attack Vectors. In 2018, Bomgar acquired BeyondTrust and retained the BeyondTrust name. He originally joined BeyondTrust in 2012 as a part of the eEye Digital Security acquisition. Morey currently oversees BeyondTrust strategy for privileged access management and remote access solutions. In 2004, he joined eEye as Director of Security Engineering and was responsible for strategic business discussions and vulnerability management architectures in Fortune 500 clients. Prior to eEye, he was Development Manager for Computer Associates, Inc. (CA), responsible for new product beta cycles and named customer accounts. He began his career as Reliability and Maintainability Engineer for a government contractor building flight and training simulators. He earned a Bachelor of Science degree in Electrical Engineering from the State University of New York at Stony Brook.

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