US Banks Now Send Warning To Customers of Data Breach
US banks now send a warning to customers of a data breach relating to ‘extremely sensitive’ data and information, sources report.
Two major U.S. banks, TD Bank and Summit National Bank, have reported to the Maine Attorney General’s Office that their customers’ personally identifiable data may have been compromised.
The banks have issued alerts to their customers informing them of these potential data breaches, which occurred between the third quarter of 2023 and the second quarter of 2024.
Summit National Bank, based in Wyoming, says it initially detected suspicious activity in May and has now confirmed that a data breach occurred between May 13th and May 16th.
According to the bank, this breach has affected 10,912 of their customers. In a notice to the impacted customers, Summit National Bank states that the information that “could have been subject to unauthorized access” includes names, Social Security numbers, and financial account details.
Separately, TD Bank has reported to the Maine Attorney General’s Office that an insider was behind a data breach that affected 41 of their customers.
In the notice sent to the affected customers, TD Bank explains that the breach was discovered on July 16th, although it had happened several months earlier.
“We recently discovered that between September 2023 and March of 2024 one of our employees improperly accessed some of your personal information without a legitimate business purpose.
We realize this is not news you want to hear, and we’re truly sorry.”
TD Bank said the leaked personal information may have included their customers names, addresses, social security numbers, dates of birth, debit card numbers, expiration dates, and even security codes.
In other TD Bank news, the lender has allocated over $3 billion to cover penalties related to ongoing global anti-money laundering (AML) investigations.
This includes a $450 million provision made in April.
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Also Read: Massive Banks Are Now Accused of Cheating Customers Billions
Other Economy News Today
Massive banks are now accused of cheating customers billions of dollars in interest payments according to financial reports.
According to a new report by Financial Times, several major Wall Street banks, including Wells Fargo, Morgan Stanley, and Bank of America, are accused of defrauding customers out of billions of dollars in interest payments.
The U.S. Securities and Exchange Commission (SEC) is currently investigating these banks to determine whether they intentionally steered clients toward “cash sweep” accounts that provided little to no interest earnings, despite the availability of higher-yielding options.
This alleged practice by the banks would amount to bilking customers out of significant sums of interest income that they should have rightfully earned on their deposits and cash holdings.
The SEC’s probe is aimed at uncovering whether this was a deliberate strategy by the banks to boost their own profits at the expense of their clients.
The report in the Financial Times highlights the concerning allegations of widespread misconduct by some of the largest financial institutions on Wall Street.
If substantiated, this could represent a major scandal involving the potential exploitation of customers through the mismanagement of their cash accounts and interest earnings.
The SEC’s investigation will be crucial in determining the full scope and nature of these alleged practices, as well as any potential enforcement actions or penalties that may be levied against the implicated banks.
The revelations have emerged from new Quarterly filings with the SEC.
In those filings, Wells Fargo says it’s in “resolution talks” with the agency over the issue, Morgan Stanley says the agency began asking questions about it in April and Bank of America confirms it’s currently being scrutinized.
All three banks have declined to comment on the matter.
Other financial firms involved in lawsuits related to cash sweep accounts include LPL Financial and Ameriprise.
LPL Financial says it plans to “vigorously” defend itself against the allegations, while Ameriprise has not released a public statement on the matter.
Also Read: The US Treasury Direct is Now Freezing Customer Accounts
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