RIP-OFF ALERT: A sophisticated identity theft ring responsible for $1.5 million in thefts has been cracked by federal prosecutors, according to
The Los Angeles Times.
Some 53 alleged criminals posed as bank representatives via e-mail or over the phone to get otherwise savvy victims to divulge personal account information. The info was then used to empty out bank and brokerage accounts. A part of the $1.5 million stolen was routed overseas to Egypt, where another 47 un-indicted co-conspirators remain at large.
This is one of the unintended consequences of dealing with such large organizations today. We don't know who we're doing business with. So unless you're being contacted by an employee who you have longstanding personal experience with, don't divulge any sensitive information. Clark instead recommends calling your bank or brokerage house and asking them if they really requested any updated info on the account.
Keep in mind that banks are duty bound to restore your funds in the event of a breach. However, there is no similar law requiring the restoration of money for a brokerage or mutual fund account.
So if you have a meaningful amount of money in a brokerage house, check your account several times a week. Executive producer Christa and her husband avoided financial Armageddon this way when a hacker targeted their account.
