Friday, May 25, 2012

Don't Trust, Always Verify

My stockbroker called with an urgent question: "Did you send us an e-mail requesting a wire transfer from your account?" No, I said. The broker replied to the sender that he would like to speak to "me", but the crook wrote back that he was boarding a plane and would be unavailable to talk.

What was worrisome: the fraudster knew my broker's personal e-mail address and was able to make the funds request look like it came from the e-mail account that my broker had on file. (There didn't appear to be any questionable ins and outs in my real e-mail account, nor did the thief know my brokerage account number.)

I'd be willing to help trap the crook(s) by wiring a token amount to his bank account, then prosecuting him for fraud, but my broker will probably just report the matter to internal security and let it drop. Too bad.

Meanwhile, I've discontinued use of that e-mail account, changed its password, and have instituted a "verbal password" whenever I speak with the broker. Thank goodness I didn't trust this newfangled electronic banking enough to allow outgoing wires when I set up the account. Nothing wrong with having to go to the broker's office to show them ID and pick up a check. Sometimes the old ways are best.

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