[ISN] Judge says TD Ameritrade's proposed security fixes aren't enough

http://www.computerworld.com/s/article/9139988/Judge_says_TD_Ameritrade_s_proposed_security_fixes_aren_t_enough?taxonomyId=17

By Jaikumar Vijayan
October 27, 2009
Computerworld 

A federal judge's rejection of a proposed settlement by TD Ameritrade 
Inc. in a data breach lawsuit marks the second time in recent months 
that a court has weighed in on what it considers to be basic security 
standards for protecting data.

U.S. District Court Judge Vaughn Walker in San Francisco yesterday 
denied final approval of a settlement that had been proposed by TD 
Ameritrade in May to settle claims stemming from a 2007 breach that 
exposed more than 6 million customer records.

In arriving at his decision, Walker said the court didn't find the 
proposed settlement to be "fair, reasonable or adequate." Rather than 
benefiting those directly affected by the breach, Ameritrade's proposed 
settlement was designed largely to benefit the company, Walker wrote in 
his 13-page ruling.

In September 2007, Ameritrade announced that the names, addresses, phone 
numbers and trading information of potentially all of its more than 6 
million retail and institutional customers at that time had been 
compromised by an intrusion into one of its databases. The stolen 
information was later used to spam those customers.

[...]


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