ACATS Transfers PSA (fraud/theft)

[Sojourner]

Not with this type of fraud. All they need is your name, address, DOB, SS# and brokerage account number. They will create their own credentials at the new firm they are transferring your money to.

I was just thinking back to the last time I setup a brokerage account. IIRC, I was asked during the signup process to verify my identity by answering several questions about my credit history (e.g., a previous address, name of previous employer, name of my mortgage lender, etc.). I suppose if a crook had access to my credit bureau info, they could know all this. But to pull off the ACATS heist, they'd need to have access to my entire credit history plus my brokerage account number(s). Seems highly unlikely, but clearly it is possible and does occasionally happen to people.

 

[NW-Bound]

I would think changing your passwords very often, and using the longest and most complex passwords is always a good idea. Usually you initiate a transfer after you log on, so I would think the attacker would need the password to go forward.

You miss the entire point.

When I did a transfer from brokerage A to brokerage B, what I did was to open an account at B. I supplied my name, SS number, date of birth, address, online or via a submitted form. That's it. I did not have to present myself, with proof of identity such as a passport or birth certificate. Nothing.

Then, I gave brokerage B info about my account at brokerage A. Just the account number. Same name, same SS, DOB.

Brokerage B then contacted Brokerage A, and said "Give me all that is in this account. He's my new customer". Done. Bingo.

I never had to log into my brokerage A Web site to do anything. Nor did I have to contact them, not via email, not via a phone call. Nothing.

And in all transfers but one, brokerage A never contacted me to ask if this was what I really wanted.

As mentioned, in only one case, broker A called me to ask the reason I was unhappy with him. In all other cases, not a pip from them.

I hope the above is clear.

 

[NW-Bound]

I was just thinking back to the last time I setup a brokerage account. IIRC, I was asked during the signup process to verify my identity by answering several questions about my credit history (e.g., a previous address, name of previous employer, name of my mortgage lender, etc.). I suppose if a crook had access to my credit bureau info, they could know all this. But to pull off the ACATS heist, they'd need to have access to my entire credit history plus my brokerage account number(s). Seems highly unlikely, but clearly it is possible and does occasionally happen to people.

I do not recall having to do the above. My most recent transfer was 6 years ago.

Perhaps the above is new, and not all brokers have such requirements.

 

[harllee]

I have a brokerage account at Vanguard. Every time I initiate any transaction at Vanguard--like a sale of assets, transfer to another account, etc. I get an email from Vanguard that the transaction is in process and then a separate email once the transaction is completed. Would this type of communication not apply to an ACATs transfer? Vanguard also emails me at my old email address if there is a change in my email address so no one could change my email address without my knowledge.

 

[gauss]

Here we are almost a year later. Several FINRA Regulatory notices have been sent out regarding the issue of ACATS fraud.

My question is does anyone know of a brokerage in 2023 that has a money transfer lockdown feature other than Fidelity?

I really don't want to have all my brokerage accounts at a single house.

Thanks
-gauss

 

[Sojourner]

I have a brokerage account at Vanguard. Every time I initiate any transaction at Vanguard--like a sale of assets, transfer to another account, etc. I get an email from Vanguard that the transaction is in process and then a separate email once the transaction is completed. Would this type of communication not apply to an ACATs transfer? Vanguard also emails me at my old email address if there is a change in my email address so no one could change my email address without my knowledge.

I am currently in the process of doing an ACATs transfer of my DF's IRA. Not only have various emails been sent to him (me) about it, but also letters via USPS. In addition, in order to initiate the process, I had to fill out a long form that included his signatures and copies of his most recent IRA statements. IMHO, it would be pretty darn difficult for a fraudster to do all this. I'm certainly not saying that ACATs fraud/theft hasn't happened or isn't a risk, but in my direct experience doing it on behalf of DF, I believe it would be far from easy.