BlackRock Asset Manager Leaks Crucial Financial Adviser User Data Details with its iShares ETF
The largest asset manager in the world, BlackRock, has exposed information about financial advisers that work in the firm.
Apparently, private data from 12,000 advisers has been shared through iShares. This information was released by Bloomberg on January 19. According to the report, data about users’ funds has also been released.
The data appeared in three different spreadsheets that were linked to the iShares exchange-traded funds (ETFs). The information released included names and email addresses of financial advisers that bought BlackRock’s ETF on behalf of customers. Additionally, the number of assets under management that each adviser had has also been leaked.
The company is the world’s largest issuer of ETFs and it handles around $6 trillion in assets. One of the documents listed more than 12,000 entries of advisers and sales representatives.
Brian Beades commented about this issue in a recent statement:
“We are conducting a full review of the matter. The inadvertent and temporary posting of the information related to two distribution partners serving independent advisers and does not include any of their underlying client information.”
Companies all over the world are investing funds in enhancing their security standards. Hackers have been targeting different companies during the last years and regulations have become very hard to protect users’ privacy.
John Reed Stark, who worked at the U.S. Securities and Exchange Commission’s enforcement division, explained that data security incidents are inevitable. He believes that it is very important for firms to have good communication with clients and customers regarding what happened.
Cryptocurrency exchanges and other platforms are also improving their security. Just a few days ago, the New Zealand-based crypto exchange Cryptopia was hacked for over $2.4 million. A year ago, the Japanese exchange Coincheck experienced a $500 million hack.