Wells Fargo & Co., already in the regulatory spotlightbecause of last year’s fake-account scandal, is drawing renewedscrutiny after a lawyer’s unauthorized release of sensitive clientdetails for tens of thousands of accounts belonging to wealthycustomers of its brokerage unit.

Regulators have started asking questions about thebreach, according to a person with knowledge of the matter,after the data was mistakenly provided to an attorney as part of alawsuit involving two brothers, one a Wells Fargo employee and theother a former employee. A person briefed on the matter said WellsFargo has determined the accounts were all from one brokeragebranch in the Northeast.

Representatives of the Financial Industry Regulatory Authorityinformally contacted at least one of the attorneys involved in thedispute for information about how the breach occurred and how Wells Fargo failed todetect it, said the person, who asked not to be identified becausethe matter isn’t public. Lawyers for the bank are taking steps tocontact regulators about the data breach, according to anotherperson with knowledge of the matter. The person didn’t specifywhich agencies.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.