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By Gary E. Markey, CPA, CFE, CIA
Manager of the Stambaugh Ness Fraud Prevention and Detection Services
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ONLINE SECURITY TIPS
According to the Securities and Exchange Commission, there are several things you can do to help protect your information online:
Security Tip: Even if a web page starts with "https" and contains a key or closed padlock, it's still possible that it may not be secure. Some phishers, for example, make spoofed websites which appear to have padlocks. To double-check, click on the padlock icon on the status bar to see the security certificate for the site. Following the "Issued to" in the pop-up window you should see the name matching the site you think you're on. If the name differs, you are probably on a spoofed site.
Security Tip: Even though a web address in an email may look legitimate, fraudsters can mask the true destination. Rather than merely clicking on a link provided in an email, type the web address into your browser yourself (or use a bookmark you previously created).
Investor Tip: Read your brokerage account agreement carefully because many firms take the position that you are responsible for the security of your account information, such as your username, password, and account number. In addition, your brokerage account agreement may provide information about what specific steps you should take if you notice any unauthorized account activity. | It's starting to happen more often.
One moment, a person can have a substantial 401(k) retirement account, and the next, the balance reads zero. With a few clicks of a computer mouse, it's possible for years of savings to disappear - and, unlike credit card and online banking accounts with legal fraud protection, a brokerage account with no insurance can leave victims hanging with no retirement funds.
With the use of a user ID and personal access code, an imposter can wipe out an entire lifetime's saving via an electronic transfer and also delete the receiving account information to avoid being caught. Since the transfer request comes from computers outside the brokerage house and the victim's user name and password are used, a refund may not have to be issued.
According to those in the industry, online hacker attacks on brokerage accounts are increasing due to higher balances and the fact that large transfers are fairly routine in the industry.
Most consumers do not understand that there are no federal consumer regulations to protect them if their brokerage account is hacked, according to fraud analysts. This is a legal loophole that could lead to the permanent loss of their funds. The Federal Reserve doesn't regulate investment firms, and the Securities and Exchange Commission doesn't mandate any similar protections for brokerage accounts.
If you fear your account has been hacked into, it's best to report the information immediately to your broker, according to industry analysts. To date, fraud victims have been reimbursed, but they may not continue to be the informal rule.
For more information about what you can do to safeguard your money and personal information, you may visit the U.S. Securities and Exchange Commission's website.
| If you have questions about the Fraud Services provided by Stambaugh Ness, please contact Gary at 717-757-6999 or 800-745-8233. You can also send Gary an email by using the form below. |
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Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
IRS Circular 230 Notice: To ensure compliance with requirements imposed by the IRS, we inform you that any US tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.
Securities and advisory services offered through Geneos Wealth Management, Inc. Member FINRA/SIPC. Geneos Wealth Management, Inc is not affiliated with Stambaugh Ness. |
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