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On July 9, 2024, Kovack Financial reported a data breach to the Maine Attorney General after determining that an unauthorized party was able to access confidential information on its computer network. In this report, Kovack Financial explains that the incident resulted in an unauthorized party being able to access consumers' confidential information, including their names, birth dates, Social Security numbers, driver's license numbers, passport numbers, state identification numbers, bank account information, license plate recognition data, medical condition or treatment information, health insurance data, and biometric identifiers. After completing the investigation, Kovack Financial began sending data breach notification letters to all individuals whose information was affected by the recent data security incident.

If you have received a data breach notification from Kovack Financial, it is important that you understand the risks involved and what you can do about them. A data breach lawyer can help you learn more about how to protect yourself from fraud or identity theft and discuss your legal options after the Kovack Financial data breach. For more information, see our recent article on this topic. Here.

What caused the data theft at Kovack Financial?

The Kovack Financial data breach was only recently disclosed and more information is expected in the near future. However, Kovack Financial's filings with the Maine Attorney General contain some important information about what led to the breach. Kovack Financial also posted a website notice discussing the incident.

According to these sources, on September 5, 2023, Kovack Financial learned that an unauthorized party had gained access to certain of the company's email accounts. In response, Kovack Financial secured its email systems and subsequently launched an investigation with the help of third-party data security experts.

On April 10, 2024, Kovack Financial confirmed that a third-party vendor had been impacted by a cybersecurity issue involving personal information of Kovack Financial customers. Kovack Financial subsequently changed the course of its investigation to consider this new information.

On June 10, 2024, Kovack Financial learned that certain emails were viewed by unauthorized parties between August 15, 2023, and September 5, 2023. It was also confirmed that the unauthorized party was able to access confidential consumer information through the various emails and attachments in the account.

After Kovack Financial determined that sensitive consumer data was accessible to unauthorized parties, the company reviewed the compromised files to determine what information was leaked and which consumers were affected. The compromised information may vary by individual, but may include your name, date of birth, Social Security number, driver's license number, passport number, state identification number, bank account information, license plate recognition data, information about your medical condition or treatment, health insurance information, and biometric identifiers.

On July 9, 2024, Kovack Financial sent out data breach letters to everyone affected by the recent data breach. These letters were intended to provide victims with a list of the information belonging to them that had been compromised.

More information about Kovack Financial

Founded in 1997, Kovack Financial is an independent, privately held broker-dealer based in Fort Lauderdale, Florida. Kovack Financial also provides back office support, technology, compliance and advisory services. Kovack Financial offers a range of financial products including equities, options, mutual funds, fixed income, insurance products and various alternative investments. Kovack Financial employs more than 297 people and generates annual revenue of approximately $65 million.

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