Possible Etrade Fraud

Discussion in 'Interactive Brokers' started by tradingbug, Jun 10, 2005.

  1. I would like to share my situation with people who are more aware of the rules and regulations. I have an online account in etrade that I have been with for a couple years. 3 weeks ago, while i was on vacation, I got an etrade phone call saying they had closed my account due to suspicious activity. I inquired about the activity and they said they could not divulge info. They suggested cleaning out my comp for spyware and resetting my login password. I said I would not be able to for another few weeks as I was on vacation.

    fast forward 2 weeks.......zip

    I returned from vacation, reset my comp and looked into my account. Someone had broken into my account and taken 4 grand from it. E-trade is trying to tell me that I am responsible for the loss. I told them that this is fraud and any bank should protect their customers from fraud and security breaches. I also said that they knew what was going on if they closed my account automatically since they suspected something fishy was going on with my sccount. Why didnt they cancel the transfer of 4 grand since they were smart enough to close my account due to suspicious activity. It is obvious they knew their was a security breach. Another question I asked was how many other people had the same security breach and had money taken from them. They responded that they are not allowed to give out that kind of info.

    Please let me know what is the best course of action or at least what I am responsible for and what I am not responsible for. Doesnt the FPIC insure up to 100 g for fruad?

    Thanks in advance
  2. axehawk


    Is this an Etrade Professional a/c?

    Or is it just a regular Etrade retail online account?
  3. Begin with a certified letter to the correct address. Give them 7 days to respond to your demand for payment, and inform them of the legal processing as your only remedy if you can't resolve the matter...

    Find out who accepts service for them and sue them in Small Claims Court. Should be around 35-50 bucks filing fee according to your State. Look up the registered agent here if you are in California:


    Just google Department of Corporations for your respective State to get online corporate info.

    Write down everything you can remember immediatly...dates and times. Keep your case simple...

    Present your case to the Judge with one short paragraph....then shut up and answer questions. Be direct and explain the damage to you. Just get your 4k judgment, do not try for more...Wear a tie and give the court its due respect. Look directly to the Judge when you speak, and never address the defendant directly...

    If you win you get a generous post judgement interest of 10% (or the statutory rate according to your state) on the time that passes after the Judgment entry.

    Michael B.

    P.S. I have a few Judgments with large corporations collecting interest and I can get the money anytime I wish as they are very solvent. But I am experienced in these matters and know what I can do and what I cannot. You would be surprised at how many times they will settle out of court....You see 5k is usually the threashold for small claims and for them to attempt to get this heard in Superior Court is not cost effective for their legal staff.
  4. I used it for my banking and trading. I did have a professional a/c at one time but they withdrew my money from the banking part of my account. So to answer you Q, i have a retail account now. Would haveing a Pro account change the advice?
  5. I never understood why brokers are so careless. The solution to these kind of problems is so easy that even i understand it: if brokers put in the client's file 1 bank account number and agree with the client that ALL transfers have to go to this number, the problem is solved; the only place that the money can go is to that specific bank account. And take that bank account at a respectable bank. But that's probably too simple.

  6. Thankyou very much. I really appreciate the advice. Especially from someone who has unfortunately had to go down this route before.
  7. Don’t they need your signature to wire money out? If so then if signature is not similar go to your local police station and ask them for help.
  8. Just got off the phone with them and they are saying its my responsibility to cover the loss since i did not notice it on time. Although I told them I was on vacation at the time. I am really astounded at how a huge coporation like Etrade could screw their customers so bad. Absolutely furious and I cant believe they are not taking responsibility. I will be taking this to small claims court but i am not happy with the wasted time I have to put forth because someone on their end could not cancel a transfer of money in my account after they knew their was a security breach and closed my account automatically.
  9. You know what to do :)

    Hint: Find a paralegal to find a case that found for the plantiff with circumstances similar to yours. By "Sherpardizing" this for the Judge, makes it a "no-brainer" for him to find for you...

    Michael B.

    P.S. No PM's please, I am not for hire...(I have enough work as it is)

  10. Sanjuro


    If you don't mind me asking.

    How can someone take 4k out of someone else's account without being caught?

    If they wire it, it can be traced.
    If they send a check and it's deposited, it can be traced.
    I'm sure the brokerages don't send cash.
    #10     Jun 10, 2005