ORX News digests of the month: Q3 2018

  • 9 October 2018

Every month the ORX News team publishes a featured digest from the ORX News service. It's a detailed look at one of the operational risk losses reported in the media that month, and is handpicked by the team as one of the most interesting stories.

Read on for all the featured summaries from Q3 2018.

September: Voya Financial pays USD 1 million for poor IT security after hackers access customer data

On 26 September Voya Financial agreed to pay $1m to the Securities and Exchange Commission (SEC) after hackers impersonated three Voya Financial independent contractors and gained access to the personal information of 5,600 customers. It was the regulator’s first enforcement of its 2013 Identity Theft Red Flags Rule, which requires firms to have written procedures prevent identity theft.

According to the SEC, the hackers phoned Voya’s technical support line in April 2016 and pretended to be the independent contractors requesting a password reset. Despite informing staff not to provide usernames or password resets over the phone following the first attempt, the hackers successfully impersonated contractors twice more.

The hackers could then access customer information including addresses, dates of birth and last four digits of social security numbers. Voya neither admitted nor denied the SEC’s findings.

Download September's featured digest

August: Standard Chartered fined NGN 2.47 billion for illegal repatriation of funds out of Nigeria

On 29 August 2018, the Central Bank of Nigeria announced it had fined Standard Chartered, Citibank, Stanbic IBTC and Diamond Bank a total of NGN 5.87bn ($16.2m) for assisting in the illegal repatriation of $8.13bn out of Nigeria on behalf of telecommunications company MTN. The banks were allegedly involved in the improper conversion of a shareholders’ loan into preference shares which did not have the final approval of the central bank.

Download August's featured digest

July: Bank of America settles with former executive over sexual harassment allegations

Bank of America has reached an eight-figure settlement with one of its former prime brokerage executives, Omeed Malik, who claimed that the bank made false allegations of sexual harassment against him to justify dismissing him. 

According to Malik, Bank of America leaked the accusations because he had blown the whistle on his boss for not having the correct regulatory license to work in the US. Malik had filed a case with FINRA in April 2018 seeking $100m and intended to file a discrimination lawsuit as well.

Download July's featured digest

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