Protect Your Brokerage Accounts From ACATS Transfer Fraud

Comments

• howaya

  February 17

  Excellent info. Thank you.
• racqueteer

  February 17 edited February 17

  Going to be difficult if you have automatic refund routing information included on your tax return; given that this information is being solicited by Elon's Raiders. -sarcasm mode on- I'm sure, though, that said raiders have been scrupulously vetted and have valid security clearances -sarcasm mode off-.
• BaluBalu

  February 17 edited February 17

  Good read.
  
  The opening sentence in the second paragraph has wrong information.
  
  I thought you can not open a new financial account if your credit is frozen. The article says otherwise. At least that was my experience with Bank of America even though I already have accounts with them.
  
  I shall let others proof out the article.
• hank

  February 17 edited February 17

  Yes - The Fidelity lockdown is easy to put on. You can select the account(s). I have 3 locked, but not my CM account which I frequently make transfers in and out of.
  
  Thanks @Mona for posting this.
• Edmond

  February 19

  Mona,
  Thank you for posting this. Immediately after reading, I put "the lockdown" on my fidelity accounts.
  
  Thanks again!
• Sven

  February 20 edited February 22

  @Mona, thank you for the article. We have placed lockdown on all our Fidelity accounts. While it was easier to transfer assets, but it poses vulnerability within the system for bad actors from exploiting it.
  
  Edit: for Fidelity customers, lockdown setting is under the Security Setting where one can select which accounts one can lockdown. We transfer funds to our external checking account and get notified immediately via text messaging and email the $ amount is being transfer. Additionally, the receiving account notifies us within 5 minutes. As such, I can track the full cycle of money flow in our accounts.
• Jim3100

  February 22

  I could never understand why I have a lockdown on my Fidelity account, now I do!. Thanks for sharing this information.
• hank

  February 22

  Jim3100 said:

  I could never understand why I have a lockdown on my Fidelity account, now I do!. .

  
  My approach too. “Lock first. Ask questions later …”
• FD1000

  February 22

  Looks like Schwab has it too.
  
  https://www.bogleheads.org/forum/viewtopic.php?t=449574
  
• Observant1

  February 22 edited February 22

  Fidelity investors can enable Money Transfer Lockdown online with a few mouse clicks.
  Per the referenced post on Bogleheads.org, Schwab investors must write a letter which
  is valid for only 6 months. Furthermore, the lockdown restriction must be read and honored
  by a human to go into effect.
• Sven

  February 22

  For Vanguard, it requires a bit more work. Here is an excerpt form Bodgeheads forum,

  HOW TO:
  
  locking down your Vanguard account against ACATS Fraud :
  
  yes you can at Vanguard ,
  
  however you must call the Vanguard "security department" and make a special request to lock down against ACATS transfers.
  
  Then the security department will request that you send this in writing to Vanguard , once they receive the request in writing, they will lock down your account for ACATS Fraud.

  Vanguard phone number is (877)223-6977