Washington, D.C. – AMP Global Clearing LLC has been slapped with a $100,000 penalty by the Commodity Futures Trading Commission (CFTC) for failing to adequately protect customer data, according to an order released February 12, 2018. The CFTC found that between June 21, 2016, and April 17, 2017, AMP neglected diligent supervision of its information systems security program (ISSP), leaving approximately 97,000 customer records vulnerable.
The vulnerability stemmed from an open access route within a network attached storage device (NASD). Despite three quarterly network risk assessments, this weakness remained undetected. Reports of similar unauthorized access incidents at other organizations using NASDs from the same manufacturer were also apparently missed by AMP. In April 2017, an unaffiliated third party exploited the vulnerability, copying customer data including personally identifiable information.
The third party subsequently contacted federal authorities, secured the copied data, and informed AMP. AMP cooperated with the CFTC investigation and worked to remediate the issue, a factor the agency recognized in its order.
“Entities entrusted with sensitive information must work diligently to protect that information,” stated James McDonald, the CFTC’s Director of Enforcement. “That’s not only good business, but when it comes to registrants in our markets, it’s the law.”
The CFTC order requires AMP to pay the $100,000 civil monetary penalty and cease and desist from violating CFTC regulations regarding diligent supervision. AMP must also submit two written reports within one year, detailing its ongoing efforts to strengthen network security and ISSP compliance.
The investigation revealed that AMP failed to properly supervise its IT provider’s implementation of ISSP provisions, including risk assessments, firewall maintenance, and unauthorized activity detection.
Source: CFTC.gov
Related Federal Cases
- Shelby Sherrod Petties, Failure to Register as Sex Offender, North … · District of Columbia
- Joshua Lee Hernandez, Capitol Assault, District of Columbia 2021 · Washington
- Bryan Rice, Fentanyl & Gun Crimes, District of Columbia 2024 · District of Columbia
- D.C. Woman, Covid-19 Relief Heist, District of Columbia 2024 · Washington
- DeAngelo Wayne McNeil, Gun & Crack Cocaine, District of Columbia 2024 · District of Columbia
