Morgan Stanley discloses data breach of its StockPlan Connect business

Morgan Stanley discloses data breach of its StockPlan Connect business
The investment bank was notified of the breach by a vendor that provides account maintenance for the stock plan business. The files did not contain passwords that could be used to access financial accounts, according to a company memo.
JUL 08, 2021

Morgan Stanley has reported that some of its clients’ personal data was compromised earlier this year after it learned of a security breach involving one of its vendor partners.

The investment bank was notified in May by Guidehouse, a vendor that provides account maintenance services to Morgan Stanley’s StockPlan Connect business, that it had suffered an information security incident, according to a July 2 letter Morgan Stanley sent to the New Hampshire Attorney General's office.

The files obtained from the vendor included: clients’ name; address; date of birth; Social Security number; and corporate company name. However, the files did not contain passwords that could be used to access financial accounts, according to the letter that was posted online and verified by a Morgan Stanley spokesperson.

“The protection of client data is of the utmost importance and is something we take very seriously,” a company spokesperson wrote in an email. “We are in close contact with Guidehouse and are taking steps to mitigate potential risks to clients.”

The breach was previously reported by Bleeping Computer.

Although the data were obtained by the unauthorized individual in January, the vendor didn't discover the attack until March, and didn't discover the impact to Morgan Stanley until May, according to the memo.

Morgan Stanley said attackers gained access to the information by exploiting a vulnerability, which was patched within five days, and that impacted participants will have access to 24 months of free credit monitoring services.

The security breach comes on the heels of a recent string of ransomware attacks on multiple companies, including the attack by DarkSide on the Colonial Pipeline that highlights how crippling these types of cyberattacks can be for a business.

Wealth managers, for one, make easy targets because they publicly diclose their assets under management, and hackers see that as an ability to pay a ransom, said John O’Connell, president and founder of The Oasis Group. Wealth managers also hold some of the most sensitive client data that directly connects to clients' finances — a potential gold mine for a cybercriminal.

Latest News

Schwab loses $4.5 million lawsuit to teachers who bought structured products
Schwab loses $4.5 million lawsuit to teachers who bought structured products

The products in question were a mix of sophisticated, complex and potentially volatile offerings.

Concurrent adds $425 million Houston team as breakaway wave continues
Concurrent adds $425 million Houston team as breakaway wave continues

Winstone Wealth Partners joins Concurrent from Raymond James, pushing the RIA platform's assets past $23 billion this year.

Democratic lawmakers demand probe into DOL 401(k) rule comments
Democratic lawmakers demand probe into DOL 401(k) rule comments

Senior Democrats including Senator Bernie Sanders urge a DOJ and FBI investigation into thousands of allegedly fake comments backing DOL's private-assets 401(k) rule.

Retirement assets hit $51.2 trillion as savers keep contributing
Retirement assets hit $51.2 trillion as savers keep contributing

Total US retirement holdings jumped 7.9% in the second quarter, with 401(k) balances and IRA contributions both climbing despite lingering economic unease

Global M&A value rises 15%, with highest sentiment in financial sector
Global M&A value rises 15%, with highest sentiment in financial sector

Megadeals are surging in 2026, but small and mid-market transaction volume remains well below historical norms.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains