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Charles Schwab announces TD Ameritrade data breach

(x-posted from Armchair...)

Charles Schwab announces TD Ameritrade data breach

Charles Schwab Corp., the parent company of TD Ameritrade, Inc., has disclosed that it is just the latest company to suffer a data breach resulting from vulnerabilities found in MOVEit file transfer software. While the company claims that the computer systems of both companies remains unharmed, customer data stored on Ameritrade’s MOVEit server was compromised.

The incident is currently under investigation by both Schwab and Ameritrade, with a thorough analysis expected to be completed soon. Upon conclusion, Schwab says, affected customers will be notified.

This data breach holds significant implications, as it contributes to one of the largest breaches of 2023, affecting millions of Americans. The compromised information puts individuals at an increased risk of identity theft and other fraudulent activities. It is crucial for customers who receive a data breach notification from TD Ameritrade or Charles Schwab to understand the potential risks and take appropriate measures.

The cause of the breach stems from vulnerabilities discovered in the MOVEit software, which TD Ameritrade used on a limited basis. The incident came to light after the software’s developers detected a zero-day vulnerability.

Promptly responding to the potential security breach, TD Ameritrade ceased using MOVEit and promptly informed law enforcement. Simultaneously, an investigation was initiated to determine the scope of the breach and the specific client data that may have been exposed. Although this investigation remains ongoing, Schwab estimates that approximately 0.5% of Ameritrade’s clients may have been affected. That could mean up to 55,000 clients have been affected.

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www.investmentnews.com/charles-schwab-announces-td-ameritrade-data-breach-239887

(I have TD and Schwab accounts and heard nothing - it would be nice of them to inform all account holders!)

Comments

  • edited July 2023
    I too have not heard from either firm. If it is the MOVEit software’s vulnerabilities the source of the problem, how come Schwab and other large brokerages using that software did not have the data breach?. Does TD/ Schwab not have contributing factors, such as reduced infrastructure spend in anticipation of phasing out the TD web platform in six months?

    Those TD accounts that have already migrated to Schwab, do you guys have access to TOS on all your Schwab accounts, incl legacy Schwab accounts?
  • I don’t think think or swim is available in Schwab yet. They said “soon” last time I asked.
  • Devo said:

    I don’t think think or swim is available in Schwab yet. They said “soon” last time I asked.

    My TD/Schwab guy, plus the 'rumor mill' says Q3 or Q4 this year, but I'll believe it when I see it. Right now I use my TD account for ToS charting/data even though I only have like $1000 in the account to keep it open -- everything else I had at TD is at Schwab.

  • My TOS accounts migrated successfully to Schwab a couple of weeks ago. Prior to that, I had to log into my TOS accounts separately. I had set up an account at Schwab previously, and they simply moved my TOS accounts over under the same login.
  • My TD migration date is many months away. TD said if I want to move sooner, I have to go through the account transfer portal (ACAT) and that it could take up to one week.
  • Wow, they're really dragging out the process in some cases, but it's probably better they go slowly to smooth out the bumps. My transition, as I said, went seamlessly over a weekend.

    They DID suggest that you set up Schwab account/login prior; that way there will be no issue with your login. Had the advantage of allowing me the 'new account' bonus! And, grandfathered the TOS $15 purchase fee in lieu of their $49.95 fee. So far, no problems, but I DID change my password just now...
  • BaluBalu said:

    My TD migration date is many months away. TD said if I want to move sooner, I have to go through the account transfer portal (ACAT) and that it could take up to one week.

    I setup a Schwab account and moved 95% of my stuff over back in summer 2020 and it went rather smoothly ... I didn't want to go thru *another* brokerage account mass migration. I need to check if my $15 OEF fee conveyed, but if it didn't, when they finally get around to moving my TD account, I will be sure to confirm the $15 OEF fee is included. (Thx for the reminder)
  • I have not received any notification from MOVEit or Schwab, but for me this comes on the heels of another data breach I just went through with Aetna, my supplemental healthcare provider. 2 weeks after being notified of that breach, the credit card I use to pay doctor copays was hit with 3 fraudulent charges totaling over $4k. It's been a pain in the a** working with Visa on that one.
  • edited July 2023
    rforno said:

    BaluBalu said:

    My TD migration date is many months away. TD said if I want to move sooner, I have to go through the account transfer portal (ACAT) and that it could take up to one week.

    I setup a Schwab account and moved 95% of my stuff over back in summer 2020 and it went rather smoothly ... I didn't want to go thru *another* brokerage account mass migration. I need to check if my $15 OEF fee conveyed, but if it didn't, when they finally get around to moving my TD account, I will be sure to confirm the $15 OEF fee is included. (Thx for the reminder)
    Thanks, @racqueteer for confirming the carryover of the legacy TD fees schedule. Since I already have a Schwab account and login credentials, I do not need to do anything to allow them to migrate my TD accounts. They have already mapped my Schwab and TD accounts using my credentials. If I currently have 3 TD accounts and 2 Schwab accounts, after migration, I will have five accounts at Schwab and will be able to access all of them with my legacy Schwab log-in credentials. If I want to consolidate the accounts to fewer accounts, that is on me. I will need to make sure my legacy TD fees schedule carries over to the migrated TD accounts.

    I wonder if the legacy TD fees schedule is automatically applied to the legacy Schwab accounts or if we need to do something like may be ask Schwab for it or even transfer assets from the legacy Schwab account positions to the newly migrated accounts. I know Schwab is not required to match the legacy TD fees for the legacy Schwab accounts and they may make me jump mini hoops like ask for it or transfer assets.

    @rforno, I would check your Schwab accounts now to see if you had been given the $15 OEF fees. If not given, I would ask Schwab to code your Schwab accounts for it. If Schwab does not agree, then you may have to follow the process I mentioned above. Even after the migration, every time you create a new account at Schwab, you not only have to ask them to code the new account to have the same privileges as the other accounts but also make sure the Rep actually does it; otherwise, default fees schedules could apply to the new account.
  • I wanted to explore the possibility of moving my TD accounts to Schwab via ACAT transfer rather than via merger migration. Multiple contacts from Schwab confirmed that no Schwab money market funds can be transferred to Schwab via ACAT transfer. I will have to liquidate the MM funds and transfer cash. If there are any screw ups and delays in the transfer, the loss of interest on un-invested cash is on me but in any case, it takes at least a week to transfer if everything goes smoothly. How many ways do these guys want to avoid paying interest on customer cash.
  • BaluBalu said:

    I wanted to explore the possibility of moving my TD accounts to Schwab via ACAT transfer rather than via merger migration. Multiple contacts from Schwab confirmed that no Schwab money market funds can be transferred to Schwab via ACAT transfer. I will have to liquidate the MM funds and transfer cash. If there are any screw ups and delays in the transfer, the loss of interest on un-invested cash is on me but in any case, it takes at least a week to transfer if everything goes smoothly. How many ways do these guys want to avoid paying interest on customer cash.


    After the merger was announced I moved my TD account to Schwab the next week to avoid going thru another mass customer migration ... equities/funds moved over no problem, and the large cash position was moved over fairly quickly, too. Wasn't a big deal or problem for me at all.

    That said, Schwab's cash sweep options (er, lack of) is pathetic and remain extremely anti-customer. I use t-bills or ETFs to park cash there just to avoid paying the .34 ER on their MMF fund and so they can't use my idle cash for their overnight purposes.
  • edited August 2023
    I can't believe it, you can lose maybe 3-5 days of MM? How much is it? 0.1%.
    I used ACAT back and forth Schwab-Fidelity and usually it takes 2--3 days. You can wire the money too. I only wired money from Schwab and it took a couple of hours, and it was free.
    BTW, you can also buy a fund, maybe RPHIX, at TD and then do the a ACAT.
  • FD1000 said:

    I can't believe it, you can lose maybe 3-5 days of MM? How much is it? 0.1%.
    I used ACAT back and forth Schwab-Fidelity and usually it takes 2--3 days. You can wire the money too. I only wired money from Schwab and it took a couple of hours, and it was free.
    BTW, you can also buy a fund, maybe RPHIX, at TD and then do the a ACAT.

    Not sure who you were responding to, but I do it on principle, not for principal.
  • My response was for BaluBalu.
  • edited August 2023
    FD1000 said:

    I can't believe it, you can lose maybe 3-5 days of MM? How much is it? 0.1%.
    I used ACAT back and forth Schwab-Fidelity and usually it takes 2--3 days. You can wire the money too. I only wired money from Schwab and it took a couple of hours, and it was free.
    BTW, you can also buy a fund, maybe RPHIX, at TD and then do the a ACAT.

    What is the point / purpose of writing out of context?

    If you do not understand, seek to understand.

    If you want to help but do not think you have sufficient information, ask questions or seek the information.

    If your purpose is to show off, you have come to the right place. If you think only your experience, even if it is out of context, that matters, you have come to the right place. If you think every one and everything needs to be corrected, you have come to the right place - an anonymous online forum.

    BTW, I was not looking for help, rather I was sharing information I gathered, just in case it is useful to others and saves them time. I occasionally forget that the safest participation (without being trolled) in this forum is to just seek information and not share.

    The stage is yours. Enjoy.
  • edited August 2023
    BB, lots of narrative, very little to why my post was off.

    The stage is yours. Enjoy.
  • Another idea. If you own MM in one company and you transfer/ACAT to another, you lose several days. Instead, you can buy a mutual fund, such as RPHIX, but maybe you don't have access to it. Another choice is TBIL which is very close to VG MM=VMFXX.
    See the chart(https://schrts.co/THIuHrrz)
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