Stockbrokers and brokerage firms have responsibilities to safeguard client information and their funds. So when information is hacked, information in the possession of the broker or elsewhere, or an identity stolen, there are responsibilities they have to compensate their injured investors. If you have suffered damages as the result of a hacking please call 303-300-5022.
An example of this is the regulatory action against securities broker Lori Thompson. On December 14, 2018, Thompson received an email from an imposter purporting to be a customer “ML”. This email was in response to an earlier email chain between Thompson and ML, requesting that UBS, Thompson’s employer, send $68,740.55 from ML’s brokerage account to a third party (“Third Party A”).
That same day, Thompson completed a client contact attestation form that falsely attested that she spoken with ML to confirm the disbursement request, when, in fact, she had not spoken with ML. Thompson received two additional emails from an impostor purporting to be ML on December 28, 2018 and January 10, 2019, requesting that two checks be sent to Third Party A and two checks be sent to another third party (Third Party B”) for a total of $298,646.92.
On each occasion, Thompson issued the checks and completed client contact attestation forms, falsely attesting that she had spoken to ML to confirm the disbursement requests when she had not.
The third parties did not have authorization to make the withdrawals and these funds were lost. Had appropriate procedures been followed these losses would have never occurred.
Brokers have safeguards that they must take. There are verifications that must be made, in addition to the attestation described above, and systems that must be put in place to protect against cyber criminals. Failure to do so is negligence. If your identity was stolen or your information hacked and lost funds as a result, please call to speak to a licensed attorney.