Morgan Stanley Loses CD-Roms With "Sensitive Information" Of 34,000 Clients


Photo: Stuart Boreham on Flickr

CD-roms with client information, including IRS, tax and account data, have gone missing from Morgan Stanley.According to someone familiar with the letter sent to the affected clients, the errant CD-Roms basically disappeared without a trace, so clients have been given a free year of fraud protection.

Morgan Stanley said it had sent two CD-Roms to the New York State Department of Taxation and Finance, and they got lost along the way.

“After an exhaustive search of all facilities and offices that the discs had passed through in transit was unable to locate them,” the bank said.

The discs were password protected and contained “sensitive information, including Morgan Stanley Smith Barney account numbers and social security numbers and/or tax identification numbers for approximately 34,000 clients.”

The affected clients were muni bond holders.

The discs were discovered missing a few weeks ago. Morgan Stanley sent out letters on Friday.

The affected clients have been offered one free year of fraud protection from Experian, and have been told to watch their brokerage accounts and statements closely.

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