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# Online Brokerage Accounts: What You Can Do to Safeguard Your Money and YourPersonal Information

Let's hope this never happens to you: You have a few free minutes so      you decide to go online to check your brokerage account information.       Your account balance is much lower than you expect - and you know that, at      least for today, neither the market nor any of your securities fell in      value.  You see that there were several wire transfers of money from      your account to an outside checking account.  But *you* never      authorized those transactions - instead, an *identity thief* did, and      that thief has now stolen your cash as well as your personal information.

Like many investors, you may enjoy some of the conveniences of an      online brokerage account, like checking your brokerage account information      at any time of day or night, buying and selling securities, or even      transferring money between your brokerage account and another account. But      if you don't take steps to protect your personal information when you go      online, you could be telling your own story of identity theft.

## How Online Identity Theft Can Happen

Many identity thieves use malicious software programs to attack      vulnerable computers of online users. These software programs can monitor      your computer activity and send information back to the thief's computer.      Sometimes, these programs will log your key strokes, which allows identity      thieves to easily obtain username and password information for any of your      online accounts, including your brokerage account.

Other identity thieves "phish"      for your personal information. "Phishing" involves the use of      fraudulent emails and copy-cat websites to trick you into revealing      valuable personal information - such as your account number, your social      security number, and the username and password information you use when      accessing your account. Sometimes fraudsters will use phishing scams to      try to get you to download keystroke logging or other malicious software      programs unsuspectingly.

But not all identity thieves have gone "high tech." Many      still use less sophisticated ways of stealing your personal information,      such as looking over your shoulder when you're typing sensitive      information or searching through your trash for confidential account      information.

## How to Protect Yourself Online

You'll need to protect yourself against identity thieves, whether      hackers, phishers, or snoops, when you use your online brokerage account.      Here are a few suggestions on ways to keep your personal information and      money more secure when you go online:
                    - *Beef Up Your Security.*  Personal firewalls and security          software packages (with anti-virus, anti-spam, and spyware detection          features) are a must-have for those who engage in online financial          transactions. Make sure your computer has the latest security patches,          and make sure that you access your online brokerage account only on a          secure web page using encryption. The website address of a secure          website connection starts with "https" instead of just          "http" and has a key or closed padlock in the status bar          (which typically appears in the lower right-hand corner of your          screen).
> 
**Security        Tip:** Even if a web page starts with "https" and contains a        key or closed padlock, it's still possible that it may not be secure.        Some phishers, for example,        make spoofed websites which appear to have padlocks. To double-check,        click on the padlock icon on the status bar to see the security        certificate for the site. Following the "Issued to" in the        pop-up window you should see the name matching the site you think you're        on. If the name differs, you are probably on a spoofed site.

                    - *Use a Security Token (if available).*  Using a security          token can make it even harder for an identity thief to access your          online brokerage account. That's because these small number-generating          devices offer a second layer of security - a one-time pass-code that          typically changes every 30 or 60 seconds. These unpredictable          pass-codes can frustrate identity thieves. While fraudsters can use          keystroke logging programs to obtain regular username and password          information, they can't use these programs to obtain the security          token pass-code. Ask your brokerage firm if you can protect your          online account with a security token or similar security device.             
                    - *Be Careful What You Download.*  When you download a          program or file from an unknown source, you risk loading malicious          software programs on your computer. Fraudsters often hide these          programs within seemingly benign applications. Think twice before you          click on a pop-up advertisement or download a "free" game or          gadget.             
                    - *Use Your Own Computer.*  It's generally safer to access          your online brokerage account from your own computer than from other          computers. If you use a computer other than your own, for example, you          won't know if it contains viruses or spyware. If you do use another          computer, be sure to delete all of the your "Temporary Internet          Files" and clear all of your "History" after you log          off your account.             
                    - *Don't Respond to Emails Requesting Personal Information.*           Legitimate entities will not ask you to provide or verify sensitive          information through a non-secure means, such as email. If you have          reason to believe that your financial institution actually does need          personal information from you, pick up the phone and call the company          yourself - using the number in your rolodex, not the one the email          provides!
> 
**Security        Tip:** Even though a web address in an email may look legitimate,        fraudsters can mask the true destination. Rather than merely clicking on        a link provided in an email, type the web address into your browser        yourself (or use a bookmark you previously created).

                    - *Be Smart About Your Password.*  The best passwords are          ones that are difficult to guess. Try using a password that consists          of a combination of numbers, letters (both upper case and lower case),          punctuation, and special characters. You should change your password          regularly and use a different password for each of your accounts.          Don't share your password with others and never reply to " phishing "          emails with your password or other sensitive information. You also          shouldn't store your password on your computer. If you need to write          down your password, store it in a secure, private place.             
                    - *Use Extra Caution with Wireless Connections.*  Wireless          networks may not provide as much security as wired Internet          connections. In fact, many "hotspots" - wireless networks in          public areas like airports, hotels and restaurants - reduce their          security so it's easier for individuals to access and use these          wireless networks. Unless you use a security token, you may decide          that accessing your online brokerage account through a wireless          connection isn't worth the security risk. You can learn more about          security issues relating to wireless networks on the website of the  Wi-Fi          Alliance .             
                    - *Log Out Completely.*  Closing or minimizing your browser          or typing in a new web address when you're done using your online          account may not be enough to prevent others from gaining access to          your account information. Instead, click on the "log out"          button to terminate your online session. In addition, you shouldn't          permit your browser to "remember" your username and password          information. If this browser feature is active, anyone using your          computer will have access to your brokerage account information.

## How to Know if Your Identity Has Been Stolen

Sometimes, it can be extraordinarily difficult to determine whether      someone has stolen your identity. If you take the steps below, you may be      able to find out whether you've been victim of identity theft and protect      yourself from further harm:
                    - *Read Your Statements.*  Don't toss aside your monthly          account statements! Read them thoroughly as soon as they arrive to          make sure that all transactions shown are ones that you actually made,          and check to see whether all of the transactions that you thought you          made appear as well. Be sure that your brokerage firm has current          contact information for you, including your mailing address and email          address.  *If you see a mistake on your statement or don't receive          a statement, contact your brokerage firm immediately.*              
                    - *Monitor Your Credit Report.*  Reviewing your credit          report may alert you to unauthorized activity, and, therefore, can be          an effective way to fight identity theft. You can obtain a free credit          report every 12 months from three different credit bureaus by          contacting the  Annual          Credit Report Request Service . 
> 
**Investor        Tip: **Read your brokerage account agreement carefully because        many firms take the position that you are responsible for the security        of your account information, such as your username, password, and        account number.  In addition, your brokerage account agreement may        provide information about what specific steps you should take if you        notice any unauthorized account activity.

## What to Do if You Run into Trouble 

Always act quickly when you come face to face with a potential fraud,      especially if you've lost money or believe your identity has been stolen.
                    - *Identity Theft.*  If you think that your personal          information has been stolen, visit the Federal Trade Commission's          Identity Theft Resource Center at  www.consumer.gov/idtheft/index.html           for information on how to file a complaint and control the          damage.              
                    - *Securities Scams.*  Before you do business with any          investment-related firm or individual, do your own independent          research to check out their background and confirm whether they are          legitimate. For step-by-step tips and links to helpful websites,          please read  Check Out Brokers and          Advisers  and  SIPC Exposes Phony          "Look-Alike" Web Site . Report investment-related scams          to the SEC using our online  Complaint          Center .              
                    - *Phishy Emails.*  If a  phishing          scam  rolls into your email box, be sure to tell the company right          away. You can also report the scam to the FBI's Internet Fraud          Complaint Center at  www.IFCCFBI.gov .          If the email purports to come from a brokerage firm or mutual fund          company, be sure to pass along that tip to the SEC's Enforcement          Division by forwarding the email to  enforcement@sec.gov . 

## Additional Resources 

For more information, please read: 
                    - Internet Fraud: How to Avoid          Internet Investment Scams               
                    - "Phishing" Fraud:          How to Avoid Getting Fried by Phony Phishermen               
                    - FINRA Investor Alert - Protect Your Online          Brokerage Account: Safety Should Come First When Logging In and Out             
                    - FINRA Investor Alert - Well-Traveled Fraud: Advance          Fee-Scams Target Non-U.S. Investors Using Fake Regulator Web Sites and          False Broker Identities           
                    - FDIC Consumer Alert - ID Theft: Strategies and Help for Fighting          Back

 

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