Hi all I contacting all my brokerage account with the following request for OFFICIAL, on the record, clarification related to my accounts in the event of a RANSOMWARE or DOS attack that renders their support systems unreachable. If you can't get your money out OR cancel your trades then you have a BIG problem. Thought it might be interesting to others to do the same. We have accounts with { BROKERAGE NAME } and want to know SPECIFICALLY what happens to the money if {BROKERAGE NAME } is the victim of a cyber attack. Right now we can set up an ACH transfer and move ALL the money out of the accounts very quickly. So in the event of a RANSOMWARE or DOS attack what would happen to our ability to: 1 exit ALL our positions using single VALIDATED instruction from us to {BROKERAGE NAME}. NOTE assume we would NOT have access to the {BROKERAGE NAME} site! 2 transfer ALL our money to a linked bank account based on a single VALIDATED instruction from us to {BROKERAGE NAME} . NOTE assume we would NOT have access to the {BROKERAGE NAME} site Just to be CLEAR on the SINGLE VALIDATED INSTRUCTION process. This is one in which we EMAIL a completely separate entity to initiate the instructions in 1 and 2 above should {BROKERAGE NAME} cease to be operational, meaning NO SUPPORT SYSTEMS.
Switch to a different broker or make a couple hundred million You’re not even a drop in the water at IB Sounds like you want a broker that knows you on a first name basis
first I thought this was a GENERAL broker thread not specific to IB, sorry about that. I thought they just sponsored it. second this situation would effect EVERY account irrespective of size. I would think everyone would want to know the brokers CLEARLY stated protocol in the situation where they could not provide you access to your account thus you could not trade or move you money. I don't care if a broker knows my name I DO care if they can't explain HOW they will handle a RANSOMWARE attack.
why aren't you concerned? Seems to me that the loss of access to your trading account would be a HUGE problem, especially if you are trading options/futures.
Buy ransomware insurance - read exactly what it does/doesn't cover. Written by the same firms who write brokerage excess. You are going to need to do a little homework based on the character of assets, size, and deductibles available.
Good advice and I hadn't really considered that BUT does that really help if you lose the ability to control your account and the market tanks taking your emini positions with it. How about opportunity cost? If you could dump all your positions in one account and transfer the cash to another UNAFFECTED account then you could carry on trading rather than filing insurance claims. I'm not saying it's a bad idea, it isn't, I AM saying that I would REALLY think people should understand what their brokerage will do should the brokerage lose control of their systems. I also see you are in Chicago as well, who do YOU use for your ransomware insurance please?
Depending on how the hack occurred org level vs individual level you may have protection. Scottrade did have a major incident and subsequently major brokers issued statement of policy in the event a compromise occurred. Tda, ib, fidelity etc offer full replacement of cash or security. If the account is compromised at an individual level there is nothing a broker can do. Eg you had weak account protection and you blame the broker. There is nothing the firm is obligated to do. If you use a mickey mouse brokerage account because of personal convenience you are protected depending on who the custodian is.
Hi @Girija outstanding information thanks, something to follow up on. Our brokerages are TD and IB right now but we are moving to Tastyworks in the future. We make EVERY effort to protect our personal data and will be purchasing a Purism or a Pinephone with a hard security dongle. One of the GREAT things about an IB account is the bingo card we got, really gives us confidence at a personal level, trying to get Tastyworks to do the same thing. Thanks again for the information. We are investigating RANSOMWARE insurance as well which was suggested to us by @ajacobson who is ex Cboe so certainly should be listened to. We know a few of the traders from that place and they are all pretty bright people.