Three former Netflix software engineers have been charged by the Wall Street watchdog over alleged insider trading.

Netflix

Netflix

The US Securities and Exchange Commission (SEC) has accused ex-staff members and two close associates of making $3 million after they used confidential Netflix subscriber growth data to help make money for themselves.

Erin Schneider, director of the SEC's San Francisco regional office, said: "We allege that a Netflix employee and his close associates engaged in a long-running, multi-million dollar scheme to profit from valuable, misappropriated company information."

The SEC made the claim after uncovering the alleged scheme using data analysis tools.

The US Attorney's Office for the Western District of Washington has also filed a criminal case against four of the defendants. If they're found guilty, they could all face prison sentences.

Earlier this year, meanwhile, Netflix revealed that it was trialling a crackdown on password sharing.

The move was motivated by a desire to stop people sharing passwords and undermining Netflix's business model.

A spokesperson for the company said: "This test is designed to help ensure that people using Netflix accounts are authorised to do so."

As part of the trial, users were able to verify that they were allowed to access the account by a code that they received from the streaming giant.