On October 1, FINRA censured a payment provider and fined it $375,000 after it accepted a Letter of Acceptance, Waiver, and Consent (AWC). FINRA alleged between October 2019 and March 2022 the payment provider failed to properly safeguard customer information. Specifically, during this period, the provider failed to terminate a former employee’s access to a database containing customer information hosted outside the provider’s network. This alleged failure allowed the former employee to access the data storage location and download reports containing nonpublic personal information of customers, which included names, account numbers, account values, and account holdings.
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