TIAA, the retirement giant for university professors and other non-profits, is the latest big firm to report clients’ private information that has been targeted as a result of hackers.
According to the Maine Attorney General’s office in a posting on its website last Friday, TIAA reported a data breach that affected 8,977 customers, with 81 being Maine residents.
TIAA has $1.2 trillion in client assets, according to the company’s website.
The data breach occurred on October 29, 2023, and was reported four days later, with the incident described as an “external system breach” or “hacking” on the Maine Attorney General’s website that lists such incidents.
According to a letter to TIIA clients, the cybersecurity incident occurred at Infosys McCamish Systems, or IMS, one of TIAA and TIAA Life’s administrative support services providers.
“Between October 29, 2023, and November 2, 2023, IMS was impacted by a cybersecurity incident in which an unauthorized party gained access to IMS systems and data,” according to the letter., which was signed by Ali Iqbal, president, TIAA-CREF Life Insurance Co. “On November 2, 2023, IMS became aware of the incident and retained a third-party cybersecurity expert to investigate and assist with containment.”
In the form letter, the information about what specific TIAA client information was at risk is not listed. TIAA has provided clients with two years of free identity monitoring services, according to the letter.
“Infosys McCamish Systems notified TIAA that some TIAA and TIAA Life retail customers - not institutional plan participants - were impacted during McCamish’s November 2023 cybersecurity incident,” a TIAA spokesperson wrote in an email. “There was no involvement whatsoever of TIAA’s systems or recordkeeping platform.”
“We have alerted those affected customers, and IMS has secured Kroll’s services to provide identity monitoring services at no cost to them,” the spokesperson wrote. “Data security remains a top priority at TIAA.”
Data breaches that potentially clients’ private information at risk are becoming a fact of life across the financial services industry. Interactive Brokers and JP Morgan Chase this year reported compromised sensitive financial information.
“Firms must take preventive measures with technological and physical control over data,” said Lisa Roth, president, Monohan & Roth, a compliance consulting firm. “Then comes a lot of training of advisors to be wary of off channel communications and other pathways hackers can enter through.”
“Also, breach reporting is extremely important,” Roth said. “Firms must have that stipulation in any contract with a third party vendor, consultant or CRM provider.”
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