Financial Firms Face Lawsuits Over MOVEit Hack Breaches

Charles Schwab and TD Ameritrade are facing a class-action lawsuit for allegedly neglecting their responsibilities to protect customer data. Hackers exploited a vulnerability in the file-transfer system MOVEit, accessing sensitive information of 61,000 TD Ameritrade customers. The lawsuit accuses both companies of negligence, unjust enrichment, and breach of implied contract. MOVEit has been widely used by businesses and government agencies, with over 600 organizations breached since June, exposing the data of nearly 40 million people. Schwab disclosed a data breach in July, affecting less than 0.5% of its clients. The lawsuit claims that Schwab and TD knowingly failed to implement reasonable measures to safeguard the data, putting impacted individuals at an increased risk of financial fraud or identity theft.