November 4, 2005 12:26 PM PST

SEC urges security in online trading

Fraudsters have successfully pilfered money out of online brokerage accounts, prompting the U.S. Securities and Exchange Commission to urge traders to take security measures.

The SEC published an investor guide Thursday, warning users of keystroke-logging software, phishing scams and traditional snoops as ways fraudsters could obtain access to online brokerage accounts and steal money. The agency suggests beefing up security to protect against such thieves.

"We are concerned that many investors aren't taking appropriate precautions when accessing their online brokerage accounts," SEC Investor Education Director Susan Wyderko said in a statement. "In our guide, we offer tips on how online investors can protect their personal information from intruders."

There have been "numerous situations" over the past months in which unauthorized individuals gained access to online brokerage accounts, according to the SEC. In some cases, money was stolen by transferring funds from the accounts, the SEC said.

The SEC's advice mirrors that of most security companies and Microsoft's "Protect Your PC" guidance. The agency recommends installing security software such as a firewall, antivirus and anti-spyware applications. Users should also ignore e-mails "phishing" for personal information.

Additionally, the SEC recommends using a security token that generates a one-time password. Some online brokers offer those tokens to their customers, but typically at a cost.

2 comments

Join the conversation!
Add your comment
Will SEC urge access
I am an American with a disability. I have lost over half of my processing speed.

I was trading successfully through TD Ameritrade, but then they changed a tool and I was no longer fast enough, without the tool working, to trade.

I lost about $5,000 as a result of the change. But, what has been devastating is losing my ability to earn money by trading stocks. My $30,000 which was enough to invest and earn my mortgage payment and more each month is gone because I had to use it to pay my mortgage payment and other expenses.

I have done a web page showing how TD Ameritrade did not help me when I needed the trading tool to be working properly.
<a class="jive-link-external" href="http://www.health-boundaries-bite.com/TDAmeritrade-Fails-a-Disabled-Client.html" target="_newWindow">http://www.health-boundaries-bite.com/TDAmeritrade-Fails-a-Disabled-Client.html</a>

What do you think?

Karen M. Kline
Posted by ConsiderThis1 (9 comments )
Reply Link Flag
I think you're a fool and a whiner. I read your pathetic screed on your website. You insulted and berated the hell out of the poor folks who work at Ameritrade just because you were too stupid to simply expand the window enough to see the value column. Being disabled is not a free pass to be a belligerent idiot.

You did ask what we thought.
Posted by jbirge (10 comments )
Link Flag
 

Join the conversation

Add your comment

The posting of advertisements, profanity, or personal attacks is prohibited. Click here to review our Terms of Use.

What's Hot

Discussions

Shared

RSS Feeds

Add headlines from CNET News to your homepage or feedreader.