Wealthsimple has confirmed a security breach that exposed sensitive information of some clients, including Social Insurance Numbers (SINs), financial account details, and government IDs. The incident occurred on August 30 and was detected shortly thereafter. The investment management platform stated that no funds were stolen and that all accounts remain secure.

In a statement, Wealthsimple emphasized that it acted swiftly to contain the issue within hours. The company’s security team, along with external experts, initiated a thorough investigation. They discovered that a third-party software package had been compromised, allowing unauthorized access to client data. However, Wealthsimple did not disclose the identity of the third-party vendor involved.

The breach affected significantly fewer than one percent of Wealthsimple's approximately three million clients, which translates to fewer than 30,000 individuals. Affected clients have been notified via email, and those who did not receive communication by the morning following the breach were assured that their data was not compromised.

Wealthsimple stated, "We take the trust you put in us very seriously. And intrinsic to that trust is being transparent. That’s why we notified our clients as soon as possible, shared as much information as we could, and let them know we’re dedicated to doing everything we can to support them."

The compromised data included contact information, government IDs, financial account numbers, IP addresses, and dates of birth. Importantly, the company confirmed that no passwords were accessed during the breach.

In response to the incident, Wealthsimple is offering affected clients two years of free credit monitoring, dark-web monitoring, identity theft protection, and insurance. The company has also informed relevant government regulators about the breach.

Wealthsimple has reassured its clients that it has enhanced security measures to prevent similar incidents in the future. The firm, founded in 2014, has grown to become one of Canada’s leading fintech companies, offering a range of financial services including investing, cryptocurrency, and tax filing. It recently reported $84 billion CAD in total assets under administration, marking a significant increase from the previous year.