Complaint #1731439 submitted on 01/07/2016 relating to Scottrade Bank. Complaint relates to Bank account or service Checking account - Account opening, closing, or management .
Complaint was submitted via Web and sent to the company on Thursday 7th January 2016.
Scottrade a very 'discount ' ( emphasis added - you get what you pay for ) brokerage house and data sieve has provided me with some of my worst banking and employment stories.
For starters, in XXXX, XXXX, and XXXX, Scottrade was victim of numerous repeated cyberattacks. The cyberattacks, which compromised Social Security numbers, security questions, bank details, and personal information was disclosed by Scottrade two years after it was internally reported as a problem. In fact, Scottrade only acknowledge the hack because the FBI make the hack public and Scottrade did not want to be seen as hiding information.
In all regards, Scottrade was negligent in failing to exercise reasonable security precautions and failing to comply with industry standards for storing confidential and private personal information.
Scottrade 's actions and/or omissions occurred despite prior warnings, including prior incursions of their network by third parties, who conducted fraudulent stock trades using Scottrade 's customers ' accounts, and even fines from government agencies concerning its system 's security procedures and oversight. - All of this and Scottrade still refused to fix their security systems.
If Scottrade had heeded warnings and taken necessary precautions, it could have prevented the breach or at least predicted it much sooner and reduced the harm to its customers.
If there is anything to take from this, it is that Scottrade 's operates a very " discount '' brokerage and omits basic tenants of good faith, cybersecurity, and basic customer service. In fact, in appears Scottrade 's only concern in this matter was how to bury the situation with the least amount of money burnt. And this goes to the heart of the issue. In XXXX and XXXX, when Scottrade was informed by employees and security experts of their cybersecurity failures, Socttrade chose not to fix those vulnerabilities and instead chose to pay large bonuses to its executive and managers.
It truly is no wonder this business is continuing to see double digit percentage declines in customer satisfaction and retention.
| Company | Scottrade Bank |
| Complaint ID | 1731439 |
| Date Received | 01/07/2016 |
| Product | Bank account or service Checking account |
| Issue | Account opening, closing, or management |
| State/ZIP Code | CA 959XX |
| Consumer Consent | Consent provided |
| Company Public Response | |
| Company Response To Customer | Closed |
| Submitted | Web 01/07/2016 |
| Result | Timely Response: Yes, Consumer Disputed: Yes |
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