September 17, 2021

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SEC charges mortgage title issuer First American for cybersecurity vulnerability breach

The SEC announced Tuesday that it had sought a settlement with one of the largest mortgage lenders in the United States over cybersecurity vulnerabilities. (((iStock).

Securities and Exchange Commission (SEC) on Tuesday announcement Cybersecurity breaches when First American Financial Corp., one of the largest mortgage and payment services companies in the United States, reveals customer sensitive personal information and fails to adequately respond to incidents and pay fees in notifying customers of spills.

The SEC ruling on the matter announced that cybersecurity journalists notified First American of a privacy breach on the morning of May 24, 2019, posting more than 800 million images spanning nearly 20 years. I pointed out. The image of the data leak contained sensitive personal information such as social security numbers.

First American currently manages 21.07% of the mortgage companies’ market share, followed by Fidelity National Financial, which holds a 32.24% market share. It is one of four mortgage companies that manage almost every mortgage transaction.

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First American issued a statement in response to the leak the same day it was informed of the leak, but according to the SEC, that alone was not a sufficient response plan. According to official instructions, the company’s management learned that a few months ago information security personnel failed to identify the leak, correct the problem, prepare a response plan, or notify anyone. It wasn’t done. The SEC claimed that this inadequate response to cyber incidents put personal data at risk.

This information security breach is reported by the title company Rapid increase in new business According to the American Land Title Association (ALTA), there was an unprecedented surge in historic mortgageing activity in 2020. The title insurance industry generated a total of $ 19.2 billion in premiums for the full year 2020, starting at $ 15.8 billion in 2019. FirstAmerican generated almost $ 4.5 billion of that.

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Christina Littmann, Cyber ​​Unit Chief of the SEC Executive Department, said: “The issuer must ensure that information that is important to the investor is reported to the person responsible for disclosure on the corporate ladder.”

According to a press release from the SEC, the order was issued under Exchange Law Rule 13a – when First American failed to protect personal information and the risk management plan did not properly inform users of the extent of the data breach. We will accuse you of violating 15 (a). The company did not confirm or deny the SEC’s findings, but agreed to pay an injunction and a fine of $ 487,616.

“We are pleased that the SEC can resolve this issue and continue to comply with all SEC disclosure control requirements,” First American said in a statement.

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In general, data security threats are increasing. A Current reports About data security According to Verizon, phishing attacks have increased 11% every year so far in 2021, and ransomware-based attacks have increased 6% every year.

By implementing security measures, it is important to raise awareness of cyber security, keep cyber attackers away, protect personal information and IDs, and prevent credit losses. By implementing a data protection detection system, you can be sure that your ID will not be stolen the first time you apply for a credit card. To make sure your personal information is safe Use the credit monitoring service You can warn of potential cybersecurity threats.

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SEC accuses mortgage issuer First American of violating cybersecurity vulnerabilities

Source link SEC accuses mortgage issuer First American of violating cybersecurity vulnerabilities