Just when you thought it was safe to handle your money by trading in the markets, we find the case of brokerage houses that transfer money based on the receipt of an e-mail, presumably with proper credentials. Matthhias Rieker, in the Wall Street Journal [ Cybercriminals Target Brokers ] takes us down the path of thieves who steal money from unsuspecting or careless brokers who accept an e-mail and do wire transfers without verifying with the client first. Many people have done wire transfers this way and thought nothing of it. It won't be so easy in the future, because the targets have had to pay back the accounts for the fraud.
Banks and brokerages have wire transfer verification procedures and they get lax about following them when "they are sure" that e-mail came from you. Anyone who has ever had a Viagra ad from one of his best friends knows better than to trust e-mail that comes from the ether of cyberspace. Banks are relearning why they have those verfication procedures for amounts over a certain number. Training programs have to be effective and tested to make sure every broker understands why they have them and use them. It is amazing how easy it is to steal e-mails in bulk. But, even more amazing is the willingness of a few people, who should know better, accepting them as proof the are legitimate requests. It also does well to remind everyone that those brokerage accounts that just sit there for months at a time without being used, should be checked every week to be sure the money is still there.
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