Protect Your Brokerage Accounts from ACATS Fraud

[audreyh1]

Thanks. I missed that post in the first scan.
I just checked that Vanguard will send email/text alerts when ACAT is initiated and as it progresses.

This is where it apparently falls apart at some brokerages. Also the scammer arranges to flood the victim with spam emails, hoping that any notification is not seen.

 

[socca]

Good advice. I've been a little lax about sharing my VG brokerage account numbers with financial pros. At least it's no longer necessary to enter a VG brokerage account number into TurboTax to import a 1099.

Correction - for TurboTax on Mac it's necessary to enter both the VG brokerage account number and the "document ID" on the 1099. This is more secure than the previous approach where entering your VG account password into TurboTax was required. However, it seems redundant to enter the brokerage account number - the 1099 document ID should have all of the info required to import the info from VG's server.

 

[rkser]

Didn’t know about the turn off feature at Fidelity. I may set that up on the main account.

Good article.

How do I turn it off on my Fidelity account, anything to stay safe

 

[audreyh1]

How do I turn it off on my Fidelity account, anything to stay safe

Go to profile at the top of a page, then click on security. They will list several options. Money Transfer Lockdown is one of them.

I had posted this in post #31: Account Data Security at Fidelity
Since you have to log in to click on the Lockdown link it should be for your account.

 

[Sunset]

This is where it apparently falls apart at some brokerages. Also the scammer arranges to flood the victim with spam emails, hoping that any notification is not seen.

Plus what if you are traveling or simply busy and don't look at the emails for a couple of days. Not everybody has constant connection.

 

[walkinwood]

I sent a message to Vanguard asking about their protections against this fraud. I'll update with their answer.

If you have a VG account, send them a message & demand some action.

Here's the response from Vanguard. I removed all the templaty stuff.

It doesn't say what a "Redemption Freeze" is exactly. Sounds like it would freeze any withdrawals from my accounts including cash withdrawals to my bank account.

Disappointing to say the least.

Redemption Freeze >>
We do not have an ACAT lock, however, you can request a Redemption Freeze.
You can request a redemption freeze on your accounts by calling us. Redemption freeze requests made over the phone are temporary and are only valid for ten calendar days. No redemptions or exchanges will be processed for the account while the freeze is active. This includes any transactions placed on the same day the freeze is initiated.
The freeze will be automatically removed after ten days unless we receive a written request for a permanent freeze. If you wish to make the account freeze permanent, please send a written request to the following address:

 

[audreyh1]

I see. So you have to call for a temporary freeze and then during those 10 days get them a permanent freeze letter.

Well that’s pretty inconvenient as lifting the freeze cannot be easy since it must also involve written communication.