I'm a victim of serious online fraud at brokerage
- Thread starter jck_2378
- Start date
Cash is not as volatile as a stock, and obviously, it was not a mistake from TD since he notified them and both parties agreed to selling the stocks.
"On the next business day which was April 17, I contacted TD and we decided first to sell all shares of the fraudulent transaction to minimize the loss. The loss from the fraud: approximately US$37,000."
He notified TD. TD is doing an investigation. Selling the stock will not complicate the matter. He got screwed in a fraud where someone wanted to get rid of, or short, a stock that was about to crash. At that point, either he or TD are going to take the loss for the fraud. Keeping the position will only increase the loss incurred by either TD or him.
If both parties agree to selling the stocks, refusing would be an implicit agrement to keeping the stocks. That would be trouble.
"On the next business day which was April 17, I contacted TD and we decided first to sell all shares of the fraudulent transaction to minimize the loss. The loss from the fraud: approximately US$37,000."
He notified TD. TD is doing an investigation. Selling the stock will not complicate the matter. He got screwed in a fraud where someone wanted to get rid of, or short, a stock that was about to crash. At that point, either he or TD are going to take the loss for the fraud. Keeping the position will only increase the loss incurred by either TD or him.
If both parties agree to selling the stocks, refusing would be an implicit agrement to keeping the stocks. That would be trouble.
I believe that TD did allow him to overtrade his cash account. The US version might still allow people to place trades and and require the funds to be received by the settlement date. This is how it used to be. Also, I wouldn't be surprised if it was an "inside job."
In 1998, Waterhouse let me go all in full margin on a search engine otcbb trading at $32. This was after I called a broker there and asked at least twice if the stock was marginable. I was unsure if all stocks over $5 were marginable. Also, they used to let you overbuy your account in the marginable stocks. I would buy a stock and due to oversight be short like $30 come settlement and then close the trade. If It was positive, I would not see the gains. I would see the losses on the losers however.
In 1998, Waterhouse let me go all in full margin on a search engine otcbb trading at $32. This was after I called a broker there and asked at least twice if the stock was marginable. I was unsure if all stocks over $5 were marginable. Also, they used to let you overbuy your account in the marginable stocks. I would buy a stock and due to oversight be short like $30 come settlement and then close the trade. If It was positive, I would not see the gains. I would see the losses on the losers however.
This is what I can say now.
1) I have never disclosed my password to anyone or wrote it down in any place.
2) I was extremely careful with my account, I checked my account daily and was able to report the issue within 18 hours of the incident. The incident happened on April 13, I reported the problem at 8am on the morning of April 14.
3) When I signed up for an account with TD Waterhouse Canada, they didn't tell me the potential danger of the internet and online trading. I didn't know the possibility of keylogger. They have not put this issue in their agreement, sent me any letter to warn me. How TD Waterhouse could do it? How TD Waterhouse could assume that all users are internet experts and know all
this. This information is critical for users to make decision as to whether to use their online system or not. At that time, all I heard from TD Waterhouse was its online trading system was secure, please use our system. I think TD Waterhouse may not be the only company doing that. Why they do that?
To me, as a normal user, I did my best to protect the security of my password. This thing happened beyond my control.
