donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I read an interesting article at Kitces.com about increasing wire fraud via financial advisors. Apparently, the scammers use an email address similar to the target (or hijack the target's account) and then request the advisor to transfer funds to an external account. The advisor complies and when they realize the error it is too late to stop the loss. Sounds like a fairly simple thing to fix with sensible redemption processes but it highlights something that always bothered me about FAs that have the authority to control funds. What if they intentionally defraud you? I assume that a big firm would be on the hook for something like this but what about individual practitioners? Do they carry insurance? Are you SOL if they can't cover the loss or if they blow town?