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ARTICLE · 12 OCTOBER 2015

Strike Suit Offers Conjectures, And Little More, About Scottrade Data Breach

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
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Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

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The threadbare complaint against Scottrade illustrates the pitfalls of trying to be a "first mover" whenever a data breach occurs.

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As reported on Friday in the Krebs on Security blog, online broker Scottrade had sent an e-mail to customers earlier that day stating that it recently had learned from law enforcement officials that Scottrade was one of a number of financial services companies that had been victimized by data thieves. That very same day saw the first class action complaint arising from the breach was filed in federal court in San Diego. Given the haste of the filing, the complaint unsurprisingly offers little more than conjecture about what took place. Plaintiff's allegations parrot facts reported by Brian Krebs – that the breach was detected by government investigators, did not compromise or access Scottrade's trading platform, and appeared only to have resulted in the theft of names and addresses, despite hackers apparently having access to customers' Social Security Numbers. Thus, even though it was unclear whether Social Security Numbers had been stolen, Scottrade offered free

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