TD Ameritrade Hit with Class Action Over Data Breach Affecting 61K

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A proposed class action lawsuit claims TD Ameritrade, Inc. failed to protect the personal information of over 61,000 current and former customers from a “major data breach” in May 2023.

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According to the 46-page lawsuit, TD Ameritrade announced in August of this year that it had been affected by a data breach that targeted MOVEit, a popular transfer platform the company uses to move, store and share files. The suit relays that between May 28 and May 30, an unauthorized third party gained access to the defendant’s files via a vulnerability in the MOVEit software and, as a result, compromised the private information of tens of thousands of individuals.

Per the case, the personal data exposed in the breach included at least individuals’ names, Social Security numbers, financial account information, dates of birth and government ID numbers.

The complaint alleges that TD Ameritrade, which provides online brokerage and investment services, failed to ensure that its business vendor had adequate data security practices in place to safeguard consumer information. As a result of the defendant’s negligence, the threat actor “obtained everything they need to commit identity theft and wreak havoc on the financial and personal lives” of victims for years to come, the filing contends.

The lawsuit also takes issue with TD Ameritrade’s untimely notification of impacted individuals. Although the company purports to have learned of the incident as early as May 30, it did not begin sending notices to affected individuals until August, several months later, the suit says.

The plaintiff, a Florida resident who obtained investment services from the defendant, received notice on August 3, 2023 informing him that his personal information had been compromised in the breach, the case relays. Since learning of the cyberattack, the man claims to have discovered fraudulent charges on his credit card account.

The lawsuit looks to represent anyone in the United States whose personal information may have been accessed and/or acquired in the data breach that is the subject of the notice sent by TD Ameritrade on August 3, 2023.

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