IFA told to compensate client over cyber breach

Updated: Fraudsters breached third-party platform, business alleges

Isabel Baxter
clock • 4 min read

The Financial Ombudsman Service (FOS) has found in favour of a client who was the victim of a data breach, with the IFA involved having claimed that the incident was a result of fraudsters breaching a third-party platform though it did not contest liability.

On 10 October 2023, fraudsters accessed the complainant's - Mrs M's - ISA, added a new bank account, and attempted to withdraw £9,980. The third-party ISA platform's alert email prompted Mrs M to contact IFA Eastwood Financial Solutions (EFS), which stopped the withdrawal before any funds were lost. Personal and financial data were compromised in the breach. Mrs M complained that EFS may have been the source of the data breach that allowed fraudsters to access her personal information and that "no body has yet explained how the breach occurred". She claimed to have "information she sa...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Companies

Aviva's wealth arm posts net flows of £10.9bn

Aviva's wealth arm posts net flows of £10.9bn

'Momentum' in platform asset gathering

Alex Sebastian
clock 05 March 2026 • 1 min read
FCA warns on firm's 'unsuitable' financial advice

FCA warns on firm's 'unsuitable' financial advice

HDH Investment Services had permissions restricted in January

Isabel Baxter
clock 05 March 2026 • 2 min read
Söderberg & Partners invests in three more UK advice businesses

Söderberg & Partners invests in three more UK advice businesses

Swedish wealth manager backs trio of ‘high calibre’ UK firms

Jenna Brown
clock 05 March 2026 • 2 min read