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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