Securities Law Updates | New Statutes, Regulations and Rules

April 11, 2012

FINRA Warns Investors of Email Hack Attacks

Email Hack Attack? Be Sure to Notify Brokerage Firms and Other Financial Institutions
FINRA Regulatory Notice 12-05, 1/26/2012

FINRA Warns Investors of Email Hack Attacks

The Financial Industry Regulatory Authority (FINRA) has issued a new Investor Alert called Email Hack Attack? Be Sure to Notify Brokerage Firms and Other Financial Institutions. FINRA has received an increasing number of reports involving investor funds being stolen by fraudsters who first gain access to the investor’s email account and then email instructions to the firm to transfer money out of the brokerage account.  Email Hack Attack? warns investors about the potential financial consequences of a compromised email account and provides tips for safeguarding your assets.

FINRA has also issued a Regulatory Notice highlighting some of the risks associated with accepting instructions to transmit or withdraw funds via email and recommending that firms reassess their policies and procedures to ensure they are adequate to protect customer assets from such risks.

“Investors who suspect that their email account has been hacked should immediately notify their brokerage firm and other financial institutions, and anyone who suspects they have been defrauded should file a complaint with FINRA,” said Gerri Walsh, FINRA’s Vice President for Investor Education.

Email Hack Attack? teaches investors how to tell when their email account has been hacked and informs them of the steps they should take if their personal financial information has been stolen. The Investor Alert also links to a joint fraud alert issued by the Federal Bureau of Investigation (FBI), Financial Services Information Sharing and Analysis Center (FS-ISAC) and Internet Crime Complaint Center (I3C) that describes a similar trend in which hacked email accounts are being used to facilitate wire transfers.

View a PDF of the rule

Also See:

FINRA Issues New Investor Alert: The IRA Rollover: 10 Tips to Making a Sound Decision

The Royal Bank of Scotland Subsidiary Sentenced for Manipulation of Yen Libor

Agencies Approve Interim Final Rule Authorizing Retention of Interests in and Sponsorship of Collateralized Debt Obligations Backed Primarily by Bank-Issued Trust Preferred Securities

Interpretive Guidance on Municipal Advisor Registration Rules Now Out

New Date Announced for Compliance with Final Municipal Advisor Registration Rules

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Companies Mentioned

Securities Law

The following companies are mentioned in Securities Law Updates:

Securities and Exchange Commission

Harris Associates, L.P.

Banc of America Securities LLC

Citicorp USA, Inc.

The Public Employees’ Retirement System of Mississippi

Morgan Stanley & Co., Inc.

Jan Charles Finance S.A.

Park East, Inc.

CIBC World Markets Corp.

Citigroup Inc.

Barclays Capital Inc.

Citigroup Global Markets, Inc.

Dynex Capital Inc.

Citigroup, Inc.

JPMorgan Chase & Co.

Merit Securities Corp.

JPMorgan Securities Inc.

Teamsters Local 445 Freight Division Pension Fund

Aetna, Inc.

Scotia Capital (USA), Inc.,

Cowen & Co., LLC f.k.a. SG Cowen Securities Corp.

Societe Generale

SunTrust Bank

TD Securities (USA), Inc.

BMO Nesbitt Burns Corp. n.k.a. Harris Nesbitt Burns Corp.

Consolidated Leasing Hugoton Joint Venture #2

Buchanan Ingersoll & Rooney Professional Corporation

Consolidated Leasing Anadarko Joint Venture

W. R. Huff Asset Management Co., LLC

Guardian Capital Management

ABN AMRO Bank N.V.

Vesta Insurance Group, Inc.

Free Enterprise Fund

Banc of America, N.A.

Torchmark Corp.

Beckstead and Watts, LLP

Barclays Bank PLC

KPMG Peat Marwick, LLP

Deloitte & Touche LLP

Public Company Accounting Oversight Board

BNY Capital Markets, Inc.

Florida State Board of Administration

Credit Suisse Securities (USA) LLC

Credit Lyonnais Securities (USA) Inc.

The Cleaners & Caulkers Local 1 Pension Fund

Credit Suisse, New York Branch

Ameriprise Financial, Inc. f.k.a. American Express Financial Corp.

Deutsche Bank AG

California Department of Corporations

The Royal Bank of Scotland plc

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