This is perhaps the biggest shitshow item of the day (new series for me?)…
From Tommy Fernandez at Financial Planning:
Beginning in late 2010, Murmylyuk worked with others to steal from online trading accounts at Scottrade, E*Trade, Fidelity, Schwab and other brokerage firms. Members of the ring first gained unauthorized access to the online accounts and changed the phone numbers and email addresses on file to prevent notice of unauthorized trading from going to the victims.
Once the hackers controlled the accounts, they used stolen identities to open additional accounts at other brokerage houses. They then caused the victims’ accounts to make unprofitable and illogical securities trades with the new accounts that benefitted the hackers.
One version of the fraud involved causing the victims’ accounts to sell options contracts to the accounts, then to purchase the same contracts back minutes later for up to nine times the price.
The brokerage firms that were hacked are reversing the trades, but it looks as though a million dollars had been stolen as a result of the manipulative trades. Do you think we’re bound to see more or less of this sort of thing going forward?