Some financial advisors using Redtail Technology’s client relationship management software may have had their clients’ personal data exposed on the internet, according to news reports.
Redtail told affected advisors in an email that it learned on March 4 about a data breach that led to its logging systems capturing some investor data and putting it in a file accessible to anyone on the internet, according to InvestmentNews, which obtained a copy of the email. The data included clients’ names, physical addresses, dates of birth and Social Security numbers, the publication writes.
Redtail CEO Brian McLaughlin claims in an emailed statement that less than 1% of the company’s clients “were affected by this data exposure,” according to InvestmentNews. But Redtail’s CRM is also one of the most popular among financial advisors and has a 57% market share, according to a recent survey by Technology Tools for Today cited by the publication.
“We are taking this matter very seriously and are doubling down on our efforts to ensure that our customers’ data is safe and secure,” McLaughlin says in the statement, according to InvestmentNews. He also says that the exposure was not an intentional breach by a third party, InvestmentNews writes.
Redtail told advisors that as soon as it learned about the exposure, it cut off access to the file and started an investigation, the publication writes.
But the nature of the data, the format in which it was stored and the time necessary to get a handle on the firm’s databases delayed remediation, Redtail said, according to InvestmentNews. And the firm had to build applications to help pinpoint the clients whose data was exposed, the publication writes.
To make up for the exposure, Redtail has offered affected investors free access to a Symantec product for credit and identity theft monitoring and remediation, according to InvestmentNews.