FINRA Issues Customer Account Protection Regulatory Notice to Protect Customer Monies from E-Mail Instruction-Related Theft

Stockbroker Law - Tuesday, June 12, 2012
FINRA Issues Customer Account Protection Regulatory Notice to Protect Customer Monies from E-Mail Instruction-Related Theft

In Regulatory Notice 12-05, the Financial Industry Regulatory Authority (FINRA) noted an increasing number of reports of customer funds stolen due to e-mail instructions received from compromised customer e-mail accounts.  The Notice highlights risks associated with non-genuine instructions to transmit or withdraw funds via e-mail. 

 

The Notice includes a requirement of the implementation of policies and procedures to verify that e-mails are in fact legitimate and genuine and were in fact sent by the customer, as opposed to a bogus third party, referring also to Regulatory Notice 09-64.

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