ACATS Transfer thefts from Fidelity

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catnapper
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ACATS Transfer thefts from Fidelity

Post by catnapper »

A scary thread on the official Fidelity Reddit site posted yesterday:

"Lost around 150k worth of stock from my fidelity brokerage account to an online scam (ACATS Transfer)"

A second user in this thread also reported the same thing happening to them today.

I just signed into my Fidelity and turned on "Lockdown" for all accounts. I didn't even know it was a thing until today.

I've always worried about identify theft allowing someone to steal from my brokerage, but I assumed there were safeguards in place, as I've never heard of it happening. How common is this (ACATS Transfer theft)?
Luckywon
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Re: ACATS Transfer thefts from Fidelity

Post by Luckywon »

catnapper wrote: Sat Jul 02, 2022 11:10 am I just signed into my Fidelity and turned on "Lockdown" for all accounts. I didn't even know it was a thing until today.
Etrade has an even more robust option "no funds out". Schwab had no similar option the last time I asked, which in my opinion is one of their few weaknesses.
outbackcountry
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Re: ACATS Transfer thefts from Fidelity

Post by outbackcountry »

I turned on the Lockdown feature after reading that thread. Was wondering if there is anything similar at Vanguard or Schwab. Looks like there isn't. Not even a notification option when a transfer is initiated from outside. Scary!
yog
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Re: ACATS Transfer thefts from Fidelity

Post by yog »

Be aware that MLT defeats transfers for self-funded overdraft protection between brokerage & CMA.
Gaston
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Re: ACATS Transfer thefts from Fidelity

Post by Gaston »

yog wrote: Sat Jul 02, 2022 12:14 pm Be aware that MLT defeats transfers for self-funded overdraft protection between brokerage & CMA.
For the non-cognoscenti among us, what do MLT and CMA stand for?
“My opinions are just that - opinions.”
MrJedi
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Re: ACATS Transfer thefts from Fidelity

Post by MrJedi »

I don't know how well it works in practice, but Fidelity (along with many other brokers) advertises a guarantee against unauthorized activity that was not your fault.

https://www.fidelity.com/security/custo ... -guarantee
yog
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Re: ACATS Transfer thefts from Fidelity

Post by yog »

Gaston wrote: Sat Jul 02, 2022 12:58 pm
yog wrote: Sat Jul 02, 2022 12:14 pm Be aware that MLT defeats transfers for self-funded overdraft protection between brokerage & CMA.
For the non-cognoscenti among us, what do MLT and CMA stand for?
Sorry - I even made a typo in my TLA (three letter acronym).

MTL = Money Transfer Lockdown
https://digital.fidelity.com/ftgw/digit ... kdown/info

CMA = Cash Management Account
https://www.fidelity.com/cash-managemen ... t/overview
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gobel
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Re: ACATS Transfer thefts from Fidelity

Post by gobel »

I recently did an ACAT. I am pretty sure they only required name and account number and estimated account size, ie simply information from your monthly statement (a good reason to go to online statements). No password or 2FA breach required even.

I did get a call from the rep at the source account, though, to see if he could change my mind. So that was at least some level of prevention.

Is the CMA account number the same as the one holding your stocks? Does the same account number show up on any paper checks for the account? That would worry me a lot. I do not use bill pay or checks associated with my brokerage accounts.
nalor511
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Re: ACATS Transfer thefts from Fidelity

Post by nalor511 »

MrJedi wrote: Sat Jul 02, 2022 1:04 pm I don't know how well it works in practice, but Fidelity (along with many other brokers) advertises a guarantee against unauthorized activity that was not your fault.

https://www.fidelity.com/security/custo ... -guarantee
This, acats must include a clawback method. I was advised multiple times that source and destination names (registrations) must match exactly. What's the thief going to do if they've now got the shares in a new brokerage account in my name? (honest question, not snark)
Topic Author
catnapper
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Re: ACATS Transfer thefts from Fidelity

Post by catnapper »

MrJedi wrote: Sat Jul 02, 2022 1:04 pm I don't know how well it works in practice, but Fidelity (along with many other brokers) advertises a guarantee against unauthorized activity that was not your fault.

https://www.fidelity.com/security/custo ... -guarantee
Hopefully:
What are examples of where I won't be covered?
Losses of cash or securities transferred to outside accounts that are beneficially owned by you are not covered by this guarantee.
In this case, the outside Etrade account was registered under their name, even though they did not set it up... !
Last edited by catnapper on Sat Jul 02, 2022 2:35 pm, edited 1 time in total.
Topic Author
catnapper
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Re: ACATS Transfer thefts from Fidelity

Post by catnapper »

What's the thief going to do if they've now got the shares in a new brokerage account in my name? (honest question, not snark)
The poster wrote this in a different thread:

"I was just told by e-trade that the stocks were sold and the amount was already transferred out to an unknown BOA account."
stocknoob4111
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Re: ACATS Transfer thefts from Fidelity

Post by stocknoob4111 »

nalor511 wrote: Sat Jul 02, 2022 1:17 pm This, acats must include a clawback method. I was advised multiple times that source and destination names (registrations) must match exactly. What's the thief going to do if they've now got the shares in a new brokerage account in my name? (honest question, not snark)
Apparently the thief was able to impersonate someone and open an account, I am thinking the thief was able to get SSN information from a breach coupled with some other key information and was able to open an account.

The only way to combat this is if institutions empower their users with security tools, at a minimum a outbound "freeze" feature AND a authenticator app based system. Fidelity has both now but Vanguard refuses to provide these.

I've been with Vanguard for 5 years and so far no issues thank goodness but it still makes me a bit nervous how weak Vanguard's security is and the thieves seem to be getting more and more innovative in their techniques.
nalor511
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Re: ACATS Transfer thefts from Fidelity

Post by nalor511 »

stocknoob4111 wrote: Sat Jul 02, 2022 1:43 pm
nalor511 wrote: Sat Jul 02, 2022 1:17 pm This, acats must include a clawback method. I was advised multiple times that source and destination names (registrations) must match exactly. What's the thief going to do if they've now got the shares in a new brokerage account in my name? (honest question, not snark)
Apparently the thief was able to impersonate someone and open an account, I am thinking the thief was able to get SSN information from a breach coupled with some other key information and was able to open an account.

The only way to combat this is if institutions empower their users with security tools, at a minimum a outbound "freeze" feature AND a authenticator app based system. Fidelity has both now but Vanguard refuses to provide these.

I've been with Vanguard for 5 years and so far no issues thank goodness but it still makes me a bit nervous how weak Vanguard's security is.
Yes, so the thief opens an account for Me, under My SSN, and moves the shares there... now what?
stocknoob4111
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Re: ACATS Transfer thefts from Fidelity

Post by stocknoob4111 »

nalor511 wrote: Sat Jul 02, 2022 1:46 pm Yes, so the thief opens an account for Me, under My SSN, and moves the shares there... now what?
You're in trouble. Thieves are having a field day because financial institutions are totally clueless about best security practices. These thieves are incredibly sophisticated to exploit the large gaps in these security practices.

SSN, Firstname, Lastname, DOB... all that has to be considered public information at this stage as so many databases have now been breached, yet those are still used as unique secret keys to open accounts, initiate transfers etc. which is the problem.

The solution is to combine a freeze setting and put that freeze setting behind a physical piece of security such as an authenticator app tied to a physical device without any easy fallback in place (such as SMS). Then secure your physical device with biometric (fingerprint lock). Nothing is 100% foolproof but this makes it extremely difficult to get through which is good enough in my view.

The Yubikey system used by VG is downright ridiculous since it has an SMS fallback, it's hilarious, why have physical device security if you're simply going to use an SMS fallback?

There is also social engineering hacking which is a HUGE issue that these firms are not addressing properly:
https://www.youtube.com/watch?v=fHhNWAKw0bY

Again, using common pieces of info SSN, Name, DOB etc. all worthless stuff. And some settings such as freeze should not be overridable by any agent over the phone without a long hard process.
prd1982
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Re: ACATS Transfer thefts from Fidelity

Post by prd1982 »

Does anyone know if VG lets you know that an ACATS has been requested in time to stop/backout the request?
ShadowCat
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Re: ACATS Transfer thefts from Fidelity

Post by ShadowCat »

This is one of my biggest fears.

Just to clarify, is it possible to instead of doing a money transfer lockdown to just have Fidelity notify me instead? I'd rather not restrict money transfers in and out of my accounts and would prefer a mandatory notification. Can I set that up in my Fidelity account?
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catnapper
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Re: ACATS Transfer thefts from Fidelity

Post by catnapper »

ShadowCat wrote: Sat Jul 02, 2022 2:07 pm This is one of my biggest fears.

Just to clarify, is it possible to instead of doing a money transfer lockdown to just have Fidelity notify me instead? I'd rather not restrict money transfers in and out of my accounts and would prefer a mandatory notification. Can I set that up in my Fidelity account?
Inbound is not restricted. And there's a big button to turn it all off (sends you a code by SMS text to verify) so turning it off "as-needed" looks very easy. The "Transfers between Fidelity accounts" seems a bit annoying though.
Transactions protected
Outbound money transfers
Transfers between Fidelity accounts
Transfer of Shares and Assets to another institution
Individual Withdrawals

Transactions not affected
Deposits or Transfers into your Fidelity accounts
Checkwriting and Direct Debit
Debit card/ATM transactions
Trading
Scheduled Required Minimum Distribution (RMD) or Personal Withdrawal Scheduled Plan
BillPay
investorpeter
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Re: ACATS Transfer thefts from Fidelity

Post by investorpeter »

The key question is what happened to the funds after E-trade --> BOA which were likely still in the original account holder's name. Presumably, at some point, the funds were transferred to a bank with weak security protocols that would allow a transfer to an account under a different name without strict verification. The funds could also have been used to purchase bitcoin or other cryptocurrency and then withdrawn into a private wallet.
Last edited by investorpeter on Sat Jul 02, 2022 2:30 pm, edited 1 time in total.
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JAZZISCOOL
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Re: ACATS Transfer thefts from Fidelity

Post by JAZZISCOOL »

Luckywon wrote: Sat Jul 02, 2022 11:15 am
catnapper wrote: Sat Jul 02, 2022 11:10 am I just signed into my Fidelity and turned on "Lockdown" for all accounts. I didn't even know it was a thing until today.
Etrade has an even more robust option "no funds out". Schwab had no similar option the last time I asked, which in my opinion is one of their few weaknesses.
Wow. I didn't know this existed either and no protection at Schwab is a concern. :shock:

Edited to add Schwab's security guarantee for fraudulent activity:

"We offer you this simple guarantee:

Schwab will cover losses in any of your Schwab accounts due to unauthorized activity.
The highest levels of security are only possible when we work together. To ensure your protection under this guarantee, it is your responsibility to:

Safeguard your account access information.
Please do not share your account access information, including but not limited to your login ID, password, PIN and transaction codes, with anyone. If you share this information with anyone, we will consider their activities to have been authorized by you.

Report any unauthorized transactions to us as quickly as possible.
If you suspect you are a victim of fraud, please contact us immediately at 888-3-SCHWAB. "
Last edited by JAZZISCOOL on Sat Jul 02, 2022 2:37 pm, edited 1 time in total.
Statistical
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Re: ACATS Transfer thefts from Fidelity

Post by Statistical »

nalor511 wrote: Sat Jul 02, 2022 1:46 pm
stocknoob4111 wrote: Sat Jul 02, 2022 1:43 pm
nalor511 wrote: Sat Jul 02, 2022 1:17 pm This, acats must include a clawback method. I was advised multiple times that source and destination names (registrations) must match exactly. What's the thief going to do if they've now got the shares in a new brokerage account in my name? (honest question, not snark)
Apparently the thief was able to impersonate someone and open an account, I am thinking the thief was able to get SSN information from a breach coupled with some other key information and was able to open an account.

The only way to combat this is if institutions empower their users with security tools, at a minimum a outbound "freeze" feature AND a authenticator app based system. Fidelity has both now but Vanguard refuses to provide these.

I've been with Vanguard for 5 years and so far no issues thank goodness but it still makes me a bit nervous how weak Vanguard's security is.
Yes, so the thief opens an account for Me, under My SSN, and moves the shares there... now what?
Sells everything and withdraws it to a bank account fraudulently opened under your name and then either wires it to a foreign bank or withdraws it as cash using ATM. Either way it is gone.

ACATS protection is pathetically weak for most brokerages and renders all other security and insurance nearly worthless like an unlocked backdoor to a bankvault.
Last edited by Statistical on Sat Jul 02, 2022 3:03 pm, edited 1 time in total.
Statistical
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Re: ACATS Transfer thefts from Fidelity

Post by Statistical »

investorpeter wrote: Sat Jul 02, 2022 2:27 pm The key question is what happened to the funds after E-trade --> BOA which were likely still in the original account holder's name. Presumably, at some point, the funds were transferred to a bank with weak security protocols that would allow a transfer to an account under a different name without strict verification. The funds could also have been used to purchase bitcoin or other cryptocurrency and then withdrawn into a private wallet.
Or simply withdrawn as cash using an ATM card or withdrawn as a wire transfer to a foreign bank in the thief's name. If someone thinks the Russian or Mongolian or Uzbekistani government really care that you 'claim' the wire transfer (which has now been withdrawn as cash in local currency) was fraudulent and will happily returns the funds they are naive. As far as they are concerned one of their citizens received a legitimate bank wire as payment. If it has been withdrawn as cash it would largely be the local bank taking a six or seven figure loss to compensate an unproven foreign fraud allegation. That isn't happen. It is gone.

Even outside of crypto there are many ways to make wealth disappear irrevocably in the traditional banking system.
Last edited by Statistical on Sat Jul 02, 2022 3:51 pm, edited 1 time in total.
Bogle64Pilot
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Re: ACATS Transfer thefts from Fidelity

Post by Bogle64Pilot »

prd1982 wrote: Sat Jul 02, 2022 2:04 pm Does anyone know if VG lets you know that an ACATS has been requested in time to stop/backout the request?
I just transferred a taxable brokerage account from Vanguard to Fidelity a couple of weeks ago. I initiated the transfer at Fidelity and within 7 days the entire balance was moved. Zero notification from Vanguard of any sort.
stocknoob4111
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Re: ACATS Transfer thefts from Fidelity

Post by stocknoob4111 »

another idea - perhaps we should have the ability to setup a list of trusted external accounts. Transfer outs can only be made to accounts on that list whether it is a "push to" or a "pull from". Any transaction with an account not on that list is summarily rejected.

To modify that list would incorporate some sort of delay to become active (for example a 7 day delay before any modification of the list becomes active) along with multiple notifications to contacts on file that there has been a change to the list of external accounts - so that a legit user would have plenty of time to intercept such a modification.

This would result in a slight inconvenience but for enhanced security, a user could opt-in to participate in such a security feature. Those that don't opt in will not be subject to the inconvenience.
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anon_investor
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Re: ACATS Transfer thefts from Fidelity

Post by anon_investor »

Bogle64Pilot wrote: Sat Jul 02, 2022 2:55 pm
prd1982 wrote: Sat Jul 02, 2022 2:04 pm Does anyone know if VG lets you know that an ACATS has been requested in time to stop/backout the request?
I just transferred a taxable brokerage account from Vanguard to Fidelity a couple of weeks ago. I initiated the transfer at Fidelity and within 7 days the entire balance was moved. Zero notification from Vanguard of any sort.
Yep, same experience when I moved a 6 figure amount via ACATS transfer from Vanguard to Merrill Edge.
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Re: ACATS Transfer thefts from Fidelity

Post by whodidntante »

Fraud investigations can be really inconvenient. My guess is that E*TRADE is going to be on the hook for 150k because they failed to verify the person's identity and facilitated the theft.
frisco
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Re: ACATS Transfer thefts from Fidelity

Post by frisco »

catnapper wrote: Sat Jul 02, 2022 2:21 pm
Transactions protected
Outbound money transfers
Transfers between Fidelity accounts
Transfer of Shares and Assets to another institution
Individual Withdrawals

Transactions not affected
Deposits or Transfers into your Fidelity accounts
Checkwriting and Direct Debit
Debit card/ATM transactions
Trading
Scheduled Required Minimum Distribution (RMD) or Personal Withdrawal Scheduled Plan
BillPay
Does anyone know whether “Transfers between Fidelity accounts” affects 401(k) BrokerageLink contributions?
Newaygo
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Re: ACATS Transfer thefts from Fidelity

Post by Newaygo »

Wow, this is scary. I just sent a message to Schwab asking if they had plans to add a similar Fidelity lockdown feature.
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catnapper
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Re: ACATS Transfer thefts from Fidelity

Post by catnapper »

frisco wrote: Sat Jul 02, 2022 3:10 pm
Does anyone know whether “Transfers between Fidelity accounts” affects 401(k) BrokerageLink contributions?
Not sure if this answers your question, but when I set up lockdown, it said:
"Note: Workplace savings accounts, such as 401(k) accounts, are not eligible for lockdown mode at this time."
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Re: ACATS Transfer thefts from Fidelity

Post by Hockey10 »

Bogle64Pilot wrote: Sat Jul 02, 2022 2:55 pm
prd1982 wrote: Sat Jul 02, 2022 2:04 pm Does anyone know if VG lets you know that an ACATS has been requested in time to stop/backout the request?
I just transferred a taxable brokerage account from Vanguard to Fidelity a couple of weeks ago. I initiated the transfer at Fidelity and within 7 days the entire balance was moved. Zero notification from Vanguard of any sort.
I did the same thing last year - moved a 7 figure IRA from Vanguard to Fidelity. The lack of questioning / alerts / notification from Vanguard was shocking. :shock: My Vanguard account had been open for about 37 years. It was gone in a flash. Fortunately, it ended up in my Fidelity account.
prd1982
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Re: ACATS Transfer thefts from Fidelity

Post by prd1982 »

Hockey10 wrote: Sat Jul 02, 2022 3:18 pm
Bogle64Pilot wrote: Sat Jul 02, 2022 2:55 pm
prd1982 wrote: Sat Jul 02, 2022 2:04 pm Does anyone know if VG lets you know that an ACATS has been requested in time to stop/backout the request?
I just transferred a taxable brokerage account from Vanguard to Fidelity a couple of weeks ago. I initiated the transfer at Fidelity and within 7 days the entire balance was moved. Zero notification from Vanguard of any sort.
I did the same thing last year - moved a 7 figure IRA from Vanguard to Fidelity. The lack of questioning / alerts / notification from Vanguard was shocking. :shock: My Vanguard account had been open for about 37 years. It was gone in a flash. Fortunately, it ended up in my Fidelity account.
I wonder if VG doesn’t notify you for its own “protection”? That is, it wants to make it clear that the requesting ACATS institution is completely responsible for the transfer from a legal (indemnity) standpoint.
UpperNwGuy
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Re: ACATS Transfer thefts from Fidelity

Post by UpperNwGuy »

People here keep posting the advice (bad advice in my opinion) that investors should only check their balances once or twice a year. Perhaps that advice helps with behavioral investing errors, but it's bad advice for account security. I check my balances daily for this reason. I don't want any funds to mysteriously disappear from my accounts.
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JoMoney
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Re: ACATS Transfer thefts from Fidelity

Post by JoMoney »

UpperNwGuy wrote: Sat Jul 02, 2022 3:29 pm People here keep posting the advice (bad advice in my opinion) that investors should only check their balances once or twice a year. Perhaps that advice helps with behavioral investing errors, but it's bad advice for account security. I check my balances daily for this reason. I don't want any funds to mysteriously disappear from my accounts.
Yes, at a minimum one needs to check every statement period. That will at least keep you within the reporting period for the protections under "Reg E" for ACH/debit transactions, and for the brokerages that do offer sometime of protection guarantee for other types of brokerage fraud, they usually require it to be reported quickly as well.
Ideally one would check with more frequency.
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Re: ACATS Transfer thefts from Fidelity

Post by Broken Man 1999 »

UpperNwGuy wrote: Sat Jul 02, 2022 3:29 pm People here keep posting the advice (bad advice in my opinion) that investors should only check their balances once or twice a year. Perhaps that advice helps with behavioral investing errors, but it's bad advice for account security. I check my balances daily for this reason. I don't want any funds to mysteriously disappear from my accounts.
Yep!

One of the few times I disagreed with Mr. Bogle's advice. It was sincerely given, but... nope nope nope!

I don't want our dollars to take up with bad folks, and run away from home.

Broken Man 1999
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stocknoob4111
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Re: ACATS Transfer thefts from Fidelity

Post by stocknoob4111 »

UpperNwGuy wrote: Sat Jul 02, 2022 3:29 pm People here keep posting the advice (bad advice in my opinion) that investors should only check their balances once or twice a year. Perhaps that advice helps with behavioral investing errors, but it's bad advice for account security. I check my balances daily for this reason. I don't want any funds to mysteriously disappear from my accounts.
+1, I login once a day, ensure that the balances are what I am seeing and just go through the transaction log, can never be too sure. However, I am wondering if an external ACAT pull will only reflect on the account after it is complete? That is there is no indication that a request for a pull is pending.
Statistical
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Re: ACATS Transfer thefts from Fidelity

Post by Statistical »

stocknoob4111 wrote: Sat Jul 02, 2022 3:50 pm
UpperNwGuy wrote: Sat Jul 02, 2022 3:29 pm People here keep posting the advice (bad advice in my opinion) that investors should only check their balances once or twice a year. Perhaps that advice helps with behavioral investing errors, but it's bad advice for account security. I check my balances daily for this reason. I don't want any funds to mysteriously disappear from my accounts.
+1, I login once a day, ensure that the balances are what I am seeing and just go through the transaction log, can never be too sure. However, I am wondering if an external ACAT pull will only reflect on the account after it is complete? That is there is no indication that a request for a pull is pending.
There is no reflection on the account positions/balance until it is gone. Some brokers will send you an email or other notification that an ACATS is in progress but there is no legal requirement to do so and some don't. In that case there would be no indication until the assets "disappeared".
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Re: ACATS Transfer thefts from Fidelity

Post by OffGridder »

A perfect example on why not go with a "one stop shop". If your account is fraudulently wiped clean or you just get locked out of your account for some reason, where are you going to access needed money while the disaster is investigated?
Last edited by OffGridder on Sat Jul 02, 2022 4:08 pm, edited 1 time in total.
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leviathan
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Re: ACATS Transfer thefts from Fidelity

Post by leviathan »

Is there any brokerages notifying outgoing ACATS transfer? In my experience, none did.
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Re: ACATS Transfer thefts from Fidelity

Post by toddthebod »

leviathan wrote: Sat Jul 02, 2022 4:07 pm Is there any brokerages notifying outgoing ACATS transfer? In my experience, none did.
ETrade did when I left them for Schwab:
We received a full account transfer request to deliver assets from your account below to an outside firm. We're processing the request and will let you know when it's complete. If you did not submit this request, please call us immediately at 800-ETRADE-1 (800-387-2331).
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JoMoney
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Re: ACATS Transfer thefts from Fidelity

Post by JoMoney »

I decided to enable the "Money Transfer Lockdown" on my Fidelity account(s) as well.
It will be a small hassle when I want to do some Roth conversions to transfer between my accounts, but not that big a deal.
It would be nice if they had a "white list" feature, where I could approve money transfers but only to specific pre-identified accounts.

I'm also a little concerned about whether or not it will block a biller who I have a regular direct debit authorized for.
The details says it will block "Outbound Money Transfers" but says it does allow "Checkwriting and Direct Debit"
I presume the biller that seems to do some sort of ACH debit from my account is considered a "Direct Debit" :confused and not some other form of EFT that might be rejected... I guess I'll find out if it gets rejected on my next bill :?
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Re: ACATS Transfer thefts from Fidelity

Post by arf30 »

Fidelity lockdown doesn't block ACATS transfers right? Not sure why people keep recommending it in a thread about ACATS fraud.
leviathan
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Re: ACATS Transfer thefts from Fidelity

Post by leviathan »

toddthebod wrote: Sat Jul 02, 2022 4:13 pm
leviathan wrote: Sat Jul 02, 2022 4:07 pm Is there any brokerages notifying outgoing ACATS transfer? In my experience, none did.
ETrade did when I left them for Schwab:
We received a full account transfer request to deliver assets from your account below to an outside firm. We're processing the request and will let you know when it's complete. If you did not submit this request, please call us immediately at 800-ETRADE-1 (800-387-2331).
Thanks. Good to know that it can be done.
Luckywon
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Re: ACATS Transfer thefts from Fidelity

Post by Luckywon »

arf30 wrote: Sat Jul 02, 2022 4:15 pm Fidelity lockdown doesn't block ACATS transfers right? Not sure why people keep recommending it in a thread about ACATS fraud.
This is the list of transactions blocked by Fidelity lockdown:

Outbound money transfers*

Transfers between Fidelity accounts

Transfer of Shares and Assets to another institution

Individual Withdrawals
Last edited by Luckywon on Sat Jul 02, 2022 4:19 pm, edited 2 times in total.
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Re: ACATS Transfer thefts from Fidelity

Post by whodidntante »

arf30 wrote: Sat Jul 02, 2022 4:15 pm Fidelity lockdown doesn't block ACATS transfers right? Not sure why people keep recommending it in a thread about ACATS fraud.
According to this here web page, it would prevent ACATS.
https://digital.fidelity.com/ftgw/digit ... kdown/info
arf30
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Re: ACATS Transfer thefts from Fidelity

Post by arf30 »

whodidntante wrote: Sat Jul 02, 2022 4:18 pm
arf30 wrote: Sat Jul 02, 2022 4:15 pm Fidelity lockdown doesn't block ACATS transfers right? Not sure why people keep recommending it in a thread about ACATS fraud.
According to this here web page, it would prevent ACATS.
https://digital.fidelity.com/ftgw/digit ... kdown/info
Thanks, I'll definitely be enabling it in that case.
grok87
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Re: ACATS Transfer thefts from Fidelity

Post by grok87 »

so would this be an argument AGAINST transitioning a vanguard mutual fund account to a vanguard brokerage account
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JoMoney
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Re: ACATS Transfer thefts from Fidelity

Post by JoMoney »

grok87 wrote: Sat Jul 02, 2022 4:28 pm so would this be an argument AGAINST transitioning a vanguard mutual fund account to a vanguard brokerage account
Probably not, I'm not 100% certain, but likely Vanguard would allow an ACATS transfer (as long as an authorizing form with correct details was submitted) from a mutual fund only account as well.
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anon_investor
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Re: ACATS Transfer thefts from Fidelity

Post by anon_investor »

With a combo of money transfer lockdown and 2FA using authenticator app only, Fidelity seems the most secure of my brokerage accounts (others are Vanguard and Merrill Edge).
vaylie
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Re: ACATS Transfer thefts from Fidelity

Post by vaylie »

Would a credit freeze prevent unauthorized openings of brokerage accounts?
stocknoob4111
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Re: ACATS Transfer thefts from Fidelity

Post by stocknoob4111 »

So, since we've established that Vanguard has zero protection against this type of fraud what is the best course of action recommended by the Bogleheads community?

What are the legal consumer protections in case of something like this?
Last edited by stocknoob4111 on Sat Jul 02, 2022 4:41 pm, edited 1 time in total.
RetiredAL
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Re: ACATS Transfer thefts from Fidelity

Post by RetiredAL »

toddthebod wrote: Sat Jul 02, 2022 4:13 pm
leviathan wrote: Sat Jul 02, 2022 4:07 pm Is there any brokerages notifying outgoing ACATS transfer? In my experience, none did.
ETrade did when I left them for Schwab:
We received a full account transfer request to deliver assets from your account below to an outside firm. We're processing the request and will let you know when it's complete. If you did not submit this request, please call us immediately at 800-ETRADE-1 (800-387-2331).
Three years ago Wells Fargo DID NOT notify. Two different accounts, separate requests, weeks apart from each other, going to a single Schwab account. The first was with a new Schwab account creation. It was done in local office, they required a Wells statement to transfer. Second transfer was done via online form using my already established POA, and only the Wells account number was needed.
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