Morgan Stanley Smith Barney is warning 34,000 of its investors to be on alert after CD-ROMs carrying their personal data disappeared when they were mailed to a state government office.

The data breach occurred after Morgan Stanley mailed two CD-ROMs that had information on investors in tax-exempt funds and bonds to the New York State Department of Taxation and Finance. The CD-ROM package reached the New York State Department of Taxation and Finance, but the discs had vanished by the time they were delivered to the recipient they were addressed to.

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