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...

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