by Howard Haykin

EMAILS FROM A CUSTOMER IMPOSTER.    On December 14^th, your broker received an email requesting that $68,740.55 be sent from your brokerage account to a third party (“Third Party A”). The email was actually sent by an imposter purporting to be you. The imposter apparently hacked into your email account and commandeered an earlier email chain between you and your broker.

Two more emails followed on December 28^th and January 10^th, requesting that 2 checks be sent to Third Party A and 2 checks be sent to another third party (“Third Party B") for a total of $298,646.92. 

CUSTOMER PROTECTION.    Investors should take comfort knowing that large brokerage firms have policies, procedures and controls that, if carried out, will adequately protect your brokerage accounts from unauthorized disbursements. If, however, a firm or its associated persons don't follow those safeguards, then you should have solid legal standing to be compensated for losses.

That said, investors should make it a point to review their monthly statements - with a keen eye toward large and unusual entries. When unable to police their own accounts, investors should seek help from a trusted friend, family member or independent ‘financial watchdog'.

Post Script.  After 21 years without a single violation, this broker's Wall Street career is essentially finished. As payment for her lies and negligence, the broker ... resigned from UBS, was fined $5,000, was suspended 2 months, and now is a sales agent with Allstate Insurance.

[For further details, click on FINRA Case #2019061427301.]