(Reuters) — The U.S. Securities and Trade Fee on Wednesday charged lenders JPMorgan and UBS in addition to on-line dealer TradeStation for deficiencies referring to the prevention of buyer id theft, the company mentioned.
With out admitting or denying the SEC’s findings, every agency agreed to pay the next penalties: JPMorgan $1.2 million, UBS $925,000, and TradeStation $425,000, the SEC mentioned in a press release.
Between no less than January 2017 to October 2019, the companies’ id theft prevention applications didn’t embrace affordable insurance policies and procedures to floor pink flags in reference to buyer accounts, the SEC mentioned in its order.
The companies additionally lacked affordable insurance policies and procedures to reply appropriately to detected id theft pink flags, or to make sure that the applications have been up to date periodically to mirror modifications in id theft dangers to clients.
“At the moment’s actions are reminders that broker-dealers and funding advisers should design and function id theft prevention applications which can be appropriately tailor-made to their companies and replace them in response to the elevated risk and altering nature of id theft,” mentioned Carolyn Welshhans, of the SEC Enforcement Division’s Crypto Belongings and Cyber Unit.