{"id":17399,"date":"2019-09-16T07:59:06","date_gmt":"2019-09-16T11:59:06","guid":{"rendered":"https:\/\/www.elteni.com\/?p=17399"},"modified":"2019-09-16T07:59:06","modified_gmt":"2019-09-16T11:59:06","slug":"brokerage-firm-pays-1-5-million-due-to-a-cyber-attack","status":"publish","type":"post","link":"https:\/\/www.elteni.com\/insights\/?p=17399","title":{"rendered":"Brokerage firm pays $1.5 million due to a cyber attack"},"content":{"rendered":"<p>Phillip Capital Inc. (&#8220;PCI&#8221;)., a Chicago-based brokerage firm was ordered to pay $1.5 million dollars due to a cyber attack. Per the CFTC, PCI <strong>allowed &#8220;<\/strong>cyber criminals to breach PCI email systems, access customer information, and successfully withdraw $1 million in PCI customer funds.&#8221; The order also finds that &#8220;PCI failed to disclose the cyber breach to its customers in a timely manner. Finally, the order finds that PCI failed to supervise its employees with respect to cybersecurity policy and procedures, a written information systems security program, and customer disbursements.&#8221;<\/p>\n<hr \/>\n<h2>Why Is It Noteworthy?<\/h2>\n<p>After examining the court documents we found some notable items:<\/p>\n<ul>\n<li>The IT Engineer responsible for all of PCI&#8217;s technology <strong>was not a cybersecurity expert and lacked the skills necessary<\/strong> to properly identify the risk presented during his actions.<\/li>\n<li>PCI&#8217;s &#8220;Chief Compliance Officer (&#8220;CCO&#8221;) also had responsibility for certain IT matters, including establishing and maintaining PCI&#8217;s Information Security Policies, and directing and overseeing PCI&#8217;s employee IT training. However, PCI&#8217;s CCO <strong>did not have a background in or familiarity with IT generally or cybersecurity specifically and was unable to adequately evaluate the sufficiency of cybersecurity policies and trainings.<\/strong>&#8220;<\/li>\n<li>PCI&#8217;s policies were not tailored for their cybersecurity program. In addition, they were not updated to address changes in PCI&#8217;s environment.<\/li>\n<li>PCI did not have proper incident response procedures in place. They failed to prioritize determining the impacts of the breach and disclosing it to the appropriate parties.<\/li>\n<\/ul>\n<h2>Don&#8217;t Wait!<\/h2>\n<p>If you haven&#8217;t performed your annual risk assessment, vulnerability tests, penetration test, policy and procedure or plan updates, incident response plan test, training, or anything else required by regulators or your investors\/clients, do it now. Contact us to find out how we can help.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Phillip Capital Inc. (&#8220;PCI&#8221;)., a Chicago-based brokerage firm was ordered to pay $1.5 million dollars due to a cyber attack. Per the CFTC, PCI allowed &#8220;cyber criminals to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":17401,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[60,29,61,62,63,50,53,64],"class_list":["post-17399","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cyber","tag-bec","tag-breach","tag-brokerage","tag-business-email-compromise","tag-cyber-attack","tag-incident-response","tag-penetration-testing","tag-vulnerability-assessment"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Brokerage firm pays $1.5 million due to a cyber attack - Insights<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.elteni.com\/insights\/?p=17399\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brokerage firm pays $1.5 million due to a cyber attack - Insights\" \/>\n<meta property=\"og:description\" content=\"Phillip Capital Inc. 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