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New Jersey has joined a multi-state settlement with Morgan Stanley, one of the world’s leading global financial services firms, over a significant data breach that compromised the personal information of millions of Americans. The settlement, worth a nationwide total of $6.5 million, was announced by New Jersey Attorney General Matt Platkin.
The data breach incidents, which occurred in 2016 and 2019, affected over 750,000 residents of the Garden State and more than three million Americans nationwide. The breaches were allegedly caused by Morgan Stanley’s decision to hire outside vendors, leading to unauthorized third parties gaining access to devices containing customers’ personal information.
The compromised data included sensitive personal details such as names, addresses, social security numbers, and banking information. The breach raised serious concerns about the protection of consumer data and the responsibilities of corporations in safeguarding such information.
As part of the settlement, New Jersey will receive approximately $1.27 million. The funds will be used to support and enhance the state’s efforts in consumer protection, particularly in the area of data privacy.