This is the best write up I’ve seen on the topic. Also interesting to learn that FINRA is not a US Gov’t agency. It’s a “Self Regulatory Organization” organized by stock brokers to make sure that things are running smoothly and the SEC and Treasury doesn’t start to regulate the stock brokers themselves. You can guess who SROs work for.
intercst
SIPC is not the government either.
In a meltdown it is worthless.
So intercst, what did you do to stop these type of transfers? How did you make your account secure?
There’s no way to make your account secure. These ACATS transfers are executed upon receipt without much if any scrutiny by your broker.
I think you want to split your money between 2 different brokers and hope an ACATS theft doesn’t affect both at once. There doesn’t seem to be a problem that you’ll actually lose money. But you could lose access to the account for 2 or 3 weeks while they investigate the ACATS transfer theft.
intercst
So even if you tell your broker you want 2 step verification on every transfer of money it still will get around it? That sounds dumb.