Major Banks’ Client Data Compromised in Vendor Cyberattack

Client data from major financial institutions such as JPMorgan Chase, Citi, and Morgan Stanley may have been compromised following a cyberattack on their technology vendor, SitusAMC. The incident, which occurred on November 12, 2023, has raised concerns about the security of sensitive information tied to various banking clients, according to a report by the New York Times.

SitusAMC, a New York-based vendor that provides technology solutions for real estate lenders, confirmed the breach in a statement on its website. The company acknowledged that certain information from its systems had been compromised and indicated that “data relating to some of our clients’ customers may also have been impacted.” However, SitusAMC has not disclosed the names of the affected clients.

In the aftermath of the hack, Michael Franco, the chief executive of SitusAMC, emphasized the company’s commitment to analyzing potentially affected data. He also noted that law enforcement had been notified about the breach. The firm reassured clients that it had contained the incident and that all services were fully operational. According to the statement, no encrypting malware was involved in the attack.

The ramifications of the hack extend beyond SitusAMC. FBI Director Kash Patel commented on the situation, stating that the agency is collaborating with affected organizations to assess the extent of the potential impact. He further noted that there had been “no operational impact to banking services.”

Requests for comment from JPMorgan Chase, Citi, and Morgan Stanley went unanswered at the time of reporting. The breach highlights the vulnerabilities that can arise in the interconnected systems within the financial services industry. As banks increasingly rely on external vendors for technology solutions, the security of client data remains a critical concern.

The full scope of the breach and its implications for clients of the affected banks are still being evaluated. As the investigation continues, financial institutions are urged to take precautions to safeguard sensitive data and enhance their cybersecurity measures.