Regulatory Notice 12-05

Verification of Emailed Instructions to Transmit or Withdraw Assets From Customer Accounts

Executive Summary

FINRA has received an increasing number of reports of incidents of customer funds stolen as a result of instructions emailed to firms from customer email accounts that have been compromised. These incidents highlight some of the risks associated with accepting instructions to transmit or withdraw funds via email. FINRA recommends that firms reassess their policies and procedures to ensure they are adequate to protect customer assets from such risks. The Federal Bureau of Investigation (FBI), Financial Services Information Sharing and Analysis Center (FS-ISAC) and Internet Crime Complaint Center (I3C) recently released a joint fraud alert describing a similar trend.

 

Questions concerning this Notice should be addressed to:

• Patricia Albrecht, Associate General Counsel, Office of General Counsel, at (202) 728-8026; or
• Terry H. Miller, Lead Sr. Regulatory Specialist, Member Regulation Department, at (202) 728-8159.