Fidelity Investments Discloses Data Breach Impacting 77,000 Customers

TLDR

• Fidelity Investments confirmed a data breach affecting 77,099 customers
• Personal information was accessed between Aug. 17-19 through two recently established accounts
• No Fidelity accounts were directly accessed
• Fidelity is offering free credit monitoring and identity restoration services for 2 years
• This is Fidelity’s fourth data breach in the last 12 months

Fidelity Investments, a major player in the cryptocurrency exchange-traded fund (ETF) market, has disclosed a data breach that compromised the personal information of over 77,000 customers.

The incident, which occurred between August 17 and 19, 2023, was reported to Maine’s attorney general on October 9.

The breach affected a small portion of Fidelity’s vast customer base, which totals 51.5 million.

According to the company, an unauthorized party gained access to customer names and other personal identifiers by using two recently established customer accounts.

Fidelity emphasized that no customer accounts were directly accessed during the incident.

The $5 trillion asset manager detected and terminated the unauthorized access on August 19.

In response to the breach, Fidelity has engaged “external security experts” to assist in resolving the matter and strengthening its security measures.

To mitigate potential risks to affected customers, Fidelity is offering a complimentary two-year subscription to credit monitoring and identity restoration services.

The company has partnered with TransUnion Interactive, a credit reporting agency, to provide these protective measures.

Fidelity has advised impacted customers to remain vigilant and regularly review their financial statements for any unusual activity.

This incident marks Fidelity’s fourth data breach in the past 12 months, with previous occurrences reported on March 4, March 18, and July 19, 2023.

The frequency of these breaches raises concerns about the company’s data security practices and its ability to protect sensitive customer information.

Fidelity Investments has gained significant attention in the cryptocurrency space this year as one of several asset managers to launch spot Bitcoin and Ethereum ETFs in the United States.

The Fidelity Wise Origin Bitcoin Fund (FBTC) has attracted nearly $10 billion in flows since its launch on January 11, 2023.

Additionally, the Fidelity Ethereum Fund (FETH) has accumulated $445 million in flows since its inception on July 23, 2023.

The timing of this data breach is particularly sensitive given Fidelity’s growing presence in the cryptocurrency ETF market.

As digital assets continue to gain mainstream acceptance, investors are increasingly concerned about the security of their personal and financial information.

It’s worth noting that Fidelity is not alone in facing cybersecurity challenges. Other prominent companies in the tech and telecommunications sectors have also reported data breaches this year.

OpenAI, the creator of ChatGPT, and AT&T, a major telecommunications provider, have both experienced security incidents.

In the case of AT&T, the breach affected more than 100 million customers, highlighting the widespread nature of data security issues across various industries.

Fidelity has not provided specific details about the nature of the stolen information or the methods used by the attackers to gain unauthorized access.

The company has stated that it is cooperating with law enforcement and regulatory authorities in their investigation of the incident.