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Security loophole at my brokerage

June 18th, 2007 by Kenric

Last year, $2,000 was stolen from my brokerage account.  Ever since then my account there has been put on a tougher security level.

Last week, I decided to withdraw some money from my account.  While doing so, I realized that I hadn’t changed my address on my account since I moved last year.  So midway through my check request, I open up another window and change my address.  I received a quick email confirmation that my address was changed and proceeded to finish my check request.

The next day after thinking about it, I was sure that my check request would be flagged due to my address change and my account security.  I call up my brokerage to find out if the check request went through.  They said it did and that the check was sent out already.  They sent the check to the new address.  BTW, I did receive the check on Saturday.

I mention to the customer care agent that I really didn’t expect this check request to go through based upon the history of fraud on my account last year and due to general security measures.  In my opinion, there should be some sort of cashout hold or verbal confirmation for liquidating any funds after an address change.  A scammer who found their way into an account could make an address change, get a check sent and change the address back the next day.  The customer care person was also suprised that I was able to do this and said that she would forward my concern to their security team.

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