Data Security Breach: State Street Bank - 45,000 Records Compromised

According to news sources, a division of State Street Corporation suffered a security data breach involving 45,000 customer and employee records. The loss occurred when a laptop storing the information was stolen from a vendor hired by Investors Financial Services, which was acquired by State Street in 2007.

The data contained on the stolen laptop included names, addresses, dates of birth and, in some cases, Social Security numbers. State Street claims that there is no evidence that the stolen data has been misused and noted that this is the first case of data theft in its history.

However, this security breach does highlight vulnerabilities associated with the loss of physical equipment — which is still a risk, no matter how stringent a firm’s online security protocols.

Data Breaches a Growing Problem for Consumers

Financial services breaches are of particular concern to consumers given the sensitive nature of the information stored by these institutions. Connecticut Attorney General Richard Blumenthal recently noted that the Social Security and account numbers of as many as 4.5 million customers were compromised when a vendor working for Bank of New York Mellon lost unencrypted backup storage tapes.

The loss of physical assets, as highlighted in these cases, is a reminder that consumers may be at risk for identity theft—even if they are careful with management of their own statements and documents.

Learn more about how identity theft actually happens: view the identity theft timeline. In this brief overview, you’ll learn that identity scams usually start long before something shows up on your credit card statements.