Possible Etrade Fraud

[alanm]

Quote from limitdown:
when using public wireless networks, remember that the transmission of data to and from their server remains unencrypted and subject to sniffers and hackers poaching upon the unweary.

Why do you say that? Most mobile devices and browsers have HTTPS and/or WTLS support. I'd be surprised if someone like E*TRADE lets you connect otherwise, any more than they let you connect with (non-secure) HTTP from a normal browser.

 

[trader_lon]

I've never dealt with a firm that would wire to a bank account without the same name as the banking account. Scary

 

[nkhoi]

Quote from trader_lon:

I've never dealt with a firm that would wire to a bank account without the same name as the banking account. Scary

more more it look like hacker wired the money himself but to admit that, it mean they got even bigger security hole.

 

[loufah]

Quote from winter:


I think everyone in this thread who has had money stolen from their etrade account needs to collect their stories into one coherent summary and submit them to internet news agencies. Start with drudge, move up the food chain.

Maybe try Herb Greenberg at marketwatch.com or the folks who write the online trading column at Barron's. Perhaps even just writing to them and cc'ing E*Trade will get ET to move a bit faster.

 

[alanm]

I believe the "brokerage and bank account names must match" thing is part of the Patriot Act AML requirements. I don't recall hearing about it or having problems with it prior to that, and I probably would have.

What usually happens is that the thief has also obtained false documents with the target's name, SSN, etc., and opened up a bank account in that name, to which he can then wire money. Probably has gotten credit cards, too.

 

[I Missed Boat]

Quote from loufah:

Also might want to look at troubleshooter.com. They have a consumer help line, and if your story is interesting it may be addressed on the host's radio show. A bank that won't tell you where a fradulent wire out of your account went is right up their alley, I think.

If it went to Western Union, then does it really matter?

 

[I Missed Boat]

Quote from LMeyers:

TB,

Might also wanna look into the provisions of some rules made under the Patriot Act that make it binding for the broker to send or receive wired funds only from a bank account that has the same title as the brokerage account. If that is the case, ETrade could have wired the money out to your bank account only.

Good luck to you. It is becoming increasingly difficult to get a fair shake from these large corporations.

Oh, I guess Western Union is out then.

 

[fl1180]

I'm glad I ran into this thread...

The same thing happened to me...

On 6/23 I got a call from Etrade saying suspicious activity and the account was frozen.
I called them back and they said that a large amount was withdrawn from my account. I said I didn't do it. They asked me if I had a "compass bank account" and ...no I do not.

They reset my password and I saw ~$7K was taken out by something called an ACH withdrawal on 6/16. I never got an alert on 6/16 or an e-mail.

I have no third party accounts authorized for this account, nor do I have any bank account linked to this account. The only way to take cash out is by check.

I've gone through the same things. They told me to do the virus scan, and then told me the money would be back into my account in 4-5 days. It didn't show up in 5 days, they then gave me the run around for two days. Finally on Thursday 7/7, they told me this matter is in their "legal dept. now" and that I will be getting a "legal letter" on how to get my money back.

Now they won't return my calls on this matter and customer service tells me that I have no wait for "the letter" before anything else is done.

I've gone to the FBI and the police and either one of them seemed interested...they referred me to other parts (the FBI told me to go to the better business bureau???) The only people that would listen and took a report and told me things to do was the SEC. They told me that once I get the letter, copy it, summarize what happened, mail it to them, and they will contact Etrade and look into the matter.

Has anyone else who had this happen gotten this letter yet? What does it say?

Also, what is an "ACH Withdrawal"? Why did I not get an alert or e-mail about this, when virtually every time I write a check or make a trade I get a confirmation alert and e-mail right away. Don’t I have to have a third p-arty notarized letter to have things withdrawn to a third party account (as stated on their website)?

Has anyone gotten their money back?

 

[dddooo]

Quote from fl1180:

I'm glad I ran into this thread...

The same thing happened to me...

On 6/23 I got a call from Etrade saying suspicious activity and the account was frozen.
I called them back and they said that a large amount was withdrawn from my account. I said I didn't do it. They asked me if I had a "compass bank account" and ...no I do not.

Was it an Etrade bank or brokerage account? I believe they have different rules, the bank accounts are insured against fraud while the brokerage accounts are not. Besides they may need a written authorization for a wire transfer from a bank account while it's not required for brokerage accounts. I might be wrong about it though.

 

[winter]

Quote from fl1180:

Also, what is an "ACH Withdrawal"?

Automatic Clearing House ("ACH") transfers, also called EFT (Electronic Funds Transfer). Basically its a transfer between two financial institutions, all that is requires is the bank routing number and the account number.

https://us.etrade.com/e/t/estation/help?id=1209031000

Quote from E*TRADE Securities Brokerage Customer Agreement :

In consideration for E*TRADE Securities LLC opening and maintaining one or more Accounts for me, I agree to the terms and conditions set forth in this Customer Agreement ("Agreement"), as amended from time to time.

...

(2) Preauthorized/Automatic Deposits and Transfers. Pre-authorized electronic fund transfers (direct deposits) may be made to my Account at E*TRADE Securities from a third party (e.g., Social Security, a pension fund, or my employer) or from my Account to a third party (e.g., checks converted to electronic ACH transactions, and recurring mortgage or insurance payments through the ACH). The term, "pre-authorized transfer", does not include: (a) transactions initiated by check, draft or similar paper instrument, (b) transfers to or from business or other non-personal accounts, (c) individual transfers E*TRADE Securities or its bank service provider initiates under an agreement with me, but without my specific request (e.g., automatic savings or automatic loan payments to E*TRADE from my account), or (d) wire transfers initiated by telephone. I note that if federal recurring or other electronic payments are made into my Account, the payments may be affected by a change in account status or transfer.