On July 9, 2024, Kovack Financial filed a notice of data breach with the Attorney General of Maine. The breach involved unauthorized access to sensitive information on the company’s network, including names, Social Security numbers, financial data, and medical information. The breach was discovered after the company identified unauthorized access to certain email accounts.
The breach began on September 5, 2023, when Kovack Financial detected an intrusion into its email systems. Following the discovery, the company took immediate steps to secure its systems and engaged third-party security experts to investigate. By April 10, 2024, it was confirmed that a third-party vendor’s cybersecurity issue contributed to the breach.
Further investigation revealed that the unauthorized party accessed confidential consumer data through compromised emails between August 16 and September 5, 2023. Kovack Financial reviewed the affected files and identified the personal information exposed. Data breach notification letters were sent to impacted individuals on July 9, 2024.
Kovack Financial, based in Fort Lauderdale, Florida, is a privately owned independent broker-dealer offering a variety of financial services and products. Founded in 1997, the company employs over 297 people and generates about $65 million in annual revenue. The company has implemented additional security measures to prevent future incidents.
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