Question

A person has established an IA as a sole proprietorship and works as an IAR out of his home office. To help promote and manage the IA, he has set up a website which contains personal information about his clients. A few weeks after setting up the website, the IAR discovers that the website has been hacked and his customers' account information has been stolen. What is the primary regulatory concern?

Answer 1

The correct answer is: Data Breach.

Step-by-step explanation:

Data Breach refers to the filtering or theft of individuals' sensitive information such as names, dates of birth, Social Security Numbers (SSN), account numbers, and passwords. Businesses suffer from this type of attack when criminals obtain that information with the attempt to steal others' assets using their information. A data breach could also be the result of companies not using a strong information security system making it susceptible to fraud.