Brokerage Account Security

[cobafdek]

A comment was posted on a current thread http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/brokerage-recommendation/msg190656/#msg190656 regarding the cumbersome log-in procedure at IB, involving an extra step beyond username and password.

 

I've come around to appreciating this procedure, in view of the frequent recent news items on security breaches at major retailers and banks.  Not too different from putting up with TSA procedures at the airport.

 

I'm curious if anyone on the board has had a security breach at their brokerage account.  My guess is that it is not as common as for credit cards, since every year or two I have been notified by my card company about a breach, and they've issue me a new card and number.

 

Related question:  anyone signed up with Lifelock?  Personally, I don't see the point in it since each credit card company, bank, brokerage, etc., have their own security procedures, and notify their customers immediatedly in the event of a data breach.  (I think.)

 

 

[thepupil]

I know someone who had their  fidelity account breached. The perpetrators  were able to change his trading authorizations by calling in and authorizing trading in penny stocks. They then manipulated a worthless penny stock. Fidelity flagged the unusual activity, called him and eventually canceled the trades, but it was a big head ache

[cubsfan]

A comment was posted on a current thread http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/brokerage-recommendation/msg190656/#msg190656 regarding the cumbersome log-in procedure at IB, involving an extra step beyond username and password.

 

I've come around to appreciating this procedure, in view of the frequent recent news items on security breaches at major retailers and banks.  Not too different from putting up with TSA procedures at the airport.

 

I'm curious if anyone on the board has had a security breach at their brokerage account.  My guess is that it is not as common as for credit cards, since every year or two I have been notified by my card company about a breach, and they've issue me a new card and number.

 

Related question:  anyone signed up with Lifelock?  Personally, I don't see the point in it since each credit card company, bank, brokerage, etc., have their own security procedures, and notify their customers immediatedly in the event of a data breach.  (I think.)

 

Lifelock is a joke. The CEO who puts his SS# on the side of those trucks has had his accounts hacked 12 times!

 

He doesn't report it or prosecute because he doesn't want investors to figure out what a scam his company is.

But he was repeatedly the victim of identity theft so the FTC almost charged them with false advertising.

 

[cubsfan]

More on the POS LifeLock for you:

 

http://web.archive.org/web/20100521030228/http://www.wired.com/threatlevel/2010/05/lifelock-identity-theft

 

http://www.ftc.gov/news-events/press-releases/2010/03/lifelock-will-pay-12-million-settle-charges-ftc-35-states

 

“In truth, the protection they provided left such a large hole … that you could drive that truck through it,” said FTC Chairman Jon Leibowitz, referring to a LifeLock TV ad showing a truck painted with Davis’s Social Security number driving around city streets.

 

 

[watsa_is_a_randian_hero]

A comment was posted on a current thread http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/brokerage-recommendation/msg190656/#msg190656 regarding the cumbersome log-in procedure at IB, involving an extra step beyond username and password.

 

I've come around to appreciating this procedure, in view of the frequent recent news items on security breaches at major retailers and banks.  Not too different from putting up with TSA procedures at the airport.

 

I'm curious if anyone on the board has had a security breach at their brokerage account.  My guess is that it is not as common as for credit cards, since every year or two I have been notified by my card company about a breach, and they've issue me a new card and number.

 

Related question:  anyone signed up with Lifelock?  Personally, I don't see the point in it since each credit card company, bank, brokerage, etc., have their own security procedures, and notify their customers immediatedly in the event of a data breach.  (I think.)

 

lifelock does not cover brokerage

 

i too use IB and appreciate extra security (though I viewed as hassle at first)

 

I have wondered if you can buy insurance (similar to lifelock) to cover large financial theft...like how does someone with 100mm protect themselves?  I'm guessing now with lifelock.

[cobafdek]

number.

lifelock does not cover brokerage

 

i too use IB and appreciate extra security (though I viewed as hassle at first)

 

I have wondered if you can buy insurance (similar to lifelock) to cover large financial theft...like how does someone with 100mm protect themselves?  I'm guessing now with lifelock.

 

LifeLock has 3 tiers of protection ranging from their basic at about $100/year, to LifeLock Ultimate Plus, which costs $300+/year and does cover brokerage accounts.  It's all primarily a monitoring/notification system, and not really a loss prevention tool.  They also have what they call a security guarantee with a $1,000,000 insurance policy to be used to cover costs related to recover stolen assets.

 

Can anyone here make a case for LifeLock?  I doubt it.  I prefer the hassles of IB's log-in security, which is also available with E-trade.

[boilermaker75]

I have accounts at IB and Schwab. Everytime I talk to someone at Schwab I tell them about the low commissions at IB, which got my commissions down to $4.95 at Schwab, and the extra security layer at IB, which has not resulted in additional security from Schwab, yet.