Because of the increasing frequency of fraudulent activity targeting online financial services providers, Interactive Brokers will be requiring the use of a security device in the near future. This system will be required for both trading (TWS and WebTrader) as well as financial withdrawals. There will several variations of the new technology with differing degrees of complexity and security. The existing button-controlled Security Device is the state of the art and has been available as part Interactive Brokers' Secure Transaction Program (STP) for several years. With any one of the IB Security devices, you authenticate that the financial transactions made in your account are authorized by you. The password generated by the Security Device can only be used once, making attacks by hackers and snoopers virtually impossible. The deployment of this new system will affect (and better protect) all our clients and we expect many questions particularly from professional traders who typically have more demanding requirements. Enrollment will start with our Advisor master accounts. Sub (customer) accounts will not be contacted. Advisors should expect notification of their enrollment some time in the next few weeks, starting tomorrow. Security is by its nature, inconvenient. Unfortunately, it appears on-line account theft and market manipulation represents the most lucrative fraudulent opportunities for organized crime. We expect this will get much worse, and a physical device is the only way to protect your assets. A lesson banks have already learned. Feel free to post your questions here or contact us through chat or Inquiry ticket.
Thanks for the info. My question is, will the currently deployed security devices (currently I've 2) be used for trading as well or will that require new, separate devices?
The device you currently have will work with the TWS. We've been testing it for weeks, and it works very well. After you enter your user name and password, you'll receive a challenge number with a field to enter the response pin.
this is exactly what I asked for in IB's feature poll #2328. GREAT MOVE IB !! when is estimated roll-out for individual accounts?
dozu888, Soon. The wheels are in motion but a variety of factors (production, distribution, etc) could affect the date. 1 month is a fair estimate but it could be a little earlier or later.
Will there be any costs associated with the new security device or will that be factored into account fees? I guess that spells the end of IBcontroller. Save a pneumatic arm to press the button on the device and a text recognition camera to read the response pin.
walterjennings, There is no cost. Depending on the type of device you receive, IB will freeze up to $150.00 in your account. The frozen funds will still be available for trading, not withdrawal. When you close your account, the device must be returned. You'll use the device to enter the instruction to transfer or withdrawal all assets except the frozen funds. At that time, you'll return the device to IB (we pay for the shipping). IB will then send the frozen cash via the method you used to withdrawal or transfer the bulk of the assets.