David DeSmitdt’s retirement plan with J.P. Morgan got hacked and emptied, and there’s no federal laws to protect him.
Unlike credit cards and checking accounts, no federal regulations to limit consumer liability in case of brokerage account breach. They’re regulated by the Securities and Exchange Commission, which mandates no specific protections in these instances.
Thankfully, after internal investigation and prodding by MSNBC’s The Red Tape Chronicles, J.P. Morgan recovered David’s funds in full.
Brokerage account theft is “on the rise,” according to the SEC. This type of fraud is helped by the fact that large transfers out of brokerage accounts are common, so unlike with a checking account, a number with a lot of zeros disbursement won’t trigger anti-fraud software.
Consumers who encounter brokerage fraud can contact the Securities and Exchange Commission’s Office of Internet Enforcement at email@example.com.
A call for increased regulation and consumer protection for brokerage accounts is in order. — BEN POPKEN
IN AN INSTANT, RETIREMENT SAVINGS VANISH [The Red Tape Chronicles] (Thanks to rgriiser!)