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Bank of America claims ex-employees took confidential databases

Bank of America claims ex-employees took confidential databases

Ex-employees and their new firm deny accusations

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Bank of America has claimed in a lawsuit that four ex-employees copied confidential databases of its trade secrets, and executed a “co-ordinated” attack on its wealth management unit using the data.

The password-protected database was taken by the employees, it said, as they left the company.

The ex-employees had "brazenly" announced they were taking the data, which included client names, addresses, emails and phone numbers, Bank of America said in papers filed last week at the New York Supreme Court.

The four accused now work at Dynasty Financial Partners, a wealth management and financial technology firm in New York. They left resignation letters saying they were allowed to take the information under a protocol agreed on by some banks, according to Bank of America. But the bank said it had not signed up for the protocol.

Dynasty is also one of the defendants in the case. The employees and Dynasty deny the accusations.

Bank of America said in its lawsuit that the databases provide “complete, comprehensive information” on clients and potential clients’ financial profile and investment preferences.

The judge in the case has temporarily barred Dynasty and the four individuals from using or sharing the database to solicit new clients, according to a Bloomberg report. But it did not bar the individuals from advising their existing clients.

Bank of America had not commented at the time of writing. A spokesperson at Dynasty Financial Partners said the team “rigorously followed” the protocol, which it said applied in this case.

“We are pleased that the judge denied Bank of America's request to prevent Dynasty from accepting account transfers from clients who want to continue to work” with the team, the spokesperson added

Hearings are now adjourned until January.

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  • Antony9000 Bank of America is an evil corporation who can crash and burnSo who care if some employees got their confidential data We have to get ride of this type of big nasty banks of criminal anyway
  • Mike Im really curious about the details of that protocol and about which banks did sign it I havent found anything helpful online yetThis page from businessweekcom seems to have the most details to datehttpgooglOOOmE
  • Courion Todays article on the legal case surrounding the former Bank of America employees is not just another employee gone bad story its a reminder to companies that if the proper access controls and monitoring tools are not put in place to protect sensitive data they could suffer significant financial and operational losses Companies need to be one step ahead of a departing employee In letting these staff members go all administrative controls should have been shut off and changed immediately so that there was no opportunity to gain access to these sensitive files Leaving even a short time gap between notice of termination and closing accounts creates vulnerabilities For example the Ponemon Institute has reported that 59 percent of terminated employees admitted to stealing confidential company information so the Bank of America is not alone Implementing an automatic de-provisioning process is the only way to confidently avoid glaring lapses in security when your companys data stores are vulnerable to attackKurt Johnson Vice President of Strategy amp Corporate Development Courion
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