A Chicago-based brokerage will pay a $1.5 million fine for their lack of cybersecurity policies by allowing cybercriminals to breach the firm’s email systems and to withdraw $1 million from a customer’s account.
The U.S. Commodities Futures Trading Commission finds that Phillip Capital Inc. failed to disclose a cyber breach to its customers promptly. PCI was also unable to train its employees concerning cybersecurity policies and procedures, which is a written information system security program and customer disbursement plan.
The fine imposes monetary sanctions totaling $1.5 million which includes a civil financial penalty of $500,000 and $1 million in restitution. PCI credited the $1 million compensation based on its prompt reimbursement of the customer funds when the fraud was discovered. The fine also requires PCI to provide reports to the Commission on its remediation efforts.
Cybercrime is a real and growing threat for our markets. While it may not be possible to eliminate all cyber threats, there are procedures in place to protect customers and their accounts from potential harm.
It is critical to be realistic about your enviroment and acknowledge that risks exist. Managed service providers support your network and provide protection against the financial and reputational cost associated with a security breach. We are a firm believer in being proactive about the security measures set for your company. There are two types of companies, those who have been hacked and those who will be.
It’s important for small and midsize businesses to not have a lack of cybersecurity policies for your organization. Cybercriminals are finding business that are vulnerable. Don’t let this happen to you. Contact us here.