In today’s digital age, the use of technology to facilitate investments has become largely commonplace. We can see many examples of how investing has moved to the cyber-realm from online investing platforms to robo-advisers. While this has greatly empowered investors to take more direct control over their investment strategy, it has also increased the potential vulnerability to cyber fraud and theft.

“In a digitally connected world, cybersecurity presents ongoing risks and threats to our capital markets and to companies operating in all industries, including public companies…”

The above quote comes from a newly published memo by the Securities and Exchange Commission (SEC). The memo sets forth guidelines and procedures for public companies to inform investors and regulators of cybersecurity risks. The threat of cybercrime has become a major reality for business all over the world, and regulators say it will only become more prevalent.

• The SEC reports that, by 2021, cybercrime will costs businesses over $6 trillion.

As such, mitigating cybersecurity risks has become one of the prime points of focus for securities regulators. In addition to regulation and oversight, the SEC regularly informs and advises about common cybersecurity risks and related preventative measures.

SEC Report to Public Companies

The recent 24-page report provides an updated interpretation of the SEC’s stance on cybersecurity disclosure. The statement provides public companies with a clear understanding of how cybersecurity risks must be disclosed – particularly as they impact investors – per SEC regulations. The original report, published in 2011, described public companies’ obligations in disclosing cybersecurity threats but did not outline specific procedure. In the wake of widespread scandals involving large-scale data breaches of public companies (Sony- 2014, Equifax- 2017), the SEC has deemed it necessary to provide public companies with a clearer understanding of what they are required to disclose to regulators as well as how it needs to happen. It’s a system of checks-and-balances. If potential, or even actual, cybersecurity risks are left unchecked and/or undisclosed to regulators, there is

1. Nothing that can be done to mitigate damage to investors/stakeholders
2. No way to implement preventative measures/safeguards against future risk

This, in addition to the damage to reputation and potential legal consequences for businesses that fail to disclose risks properly.

So what does a public company’s disclosure of cybersecurity risks mean to you?

While the report is directed at public companies, there is information that you will find applicable as an investor. The most widespread (and costly) damages of cyber attacks is data loss; personal data: personnel records, shareholder information, account information. It’s the kind of stuff you don’t want getting into the wrong hands, especially if you are an investor. So, while a cybersecurity attack may be directed towards a public company, it’s investors that are getting hit. While the report does have info you need to know, all 24 pages may not be exactly relevant to you. So to save you some time, we took a look at the full SEC report. We’re bringing you the main takeaways so you can understand what this means for you and your investments.

If you would like to take a look yourself, you can also read the full report here

Understanding Disclosure Guidelines

When you invest, what is one the biggest factors to consider? R-I-S-K Before you pull the trigger on any investment, you will want to know the risks. There are always going to be risks – that’s the name of the game – but for the most part, these should be accountable risks; ones you can anticipate. But what happens if certain risks are concealed from you and you are not equipped the resources to address them, should those risks become a threat? That’s where disclosure laws come in. In any investment situation, whether you’re buying a house or securitized asset, you are entitled to a full disclosure of potential or real risks concerning that asset. The same goes when you are considering an investment in a public company; you will want to know the material risks with which it is associated. It is standard procedure to review a company’s risk profile in order to assess its investment value. The issue prompting the SEC’s updated guidelines report is that, in light of the rising threat of cybercrime, there is not a great enough effort to properly disclose cybersecurity risks to investors.

Assessing Cybersecurity Risks

Before investing in a public company, make sure you have done a proper risk assessment including:

• Thorough review of your disclosure agreement
• Inquiry into cybersecurity risks and cyber-threats

The SEC guidelines spell-out specific circumstances in which a public company must disclose cybersecurity risks to investors including with the issuance of any periodic reports disclosing business operations, risk factors, legal proceeding and upon furnishment of material information necessary to make an investment decision. Companies are not obligated to disclose cybersecurity frameworks or operations in order preserve existing security measures in the event of an attack. Essentially, they need to provide you with actionable resources to make an informed investment decision as well as with the ability to respond in the event of a cyber attack.

What to Do if You Become the Victim of a Cyber-attack

If you find that one or more of your investment accounts has been compromised by a cyber-attack, there are a few things you need to do immediately:

Notify your financial institution and/or investment firm

Letting them know as soon as possible that one or may of your accounts may have been compromised will help them catch any out-of-place changes to the account. Make sure you document all discussions you have for reference.

Change all of your investment/financial account passwords and login codes

If you believe that your login information to any of your accounts may have been stolen, change your passwords immediately. If you use one password for multiple accounts, make sure you have changed all of them.

Close hacked accounts

You may want to consider speaking with your investment firm or advisor about closing your account and transferring assets to a new one if you notice suspicious activity.

Put a fraud alert on your credit profile

If you believe you have been the victim of identity theft, you can notify any one of the major credit reporting companies to have an initial fraud alert placed on your account. This will allow any bank or crediting institution to view an identity theft alert when viewing your credit file.

Additional Resources

Suffering a cyber-attack that hurts your investments can leave you with a lot to deal with. If you need any information or assistance in recovering your investment after a cyber-attack, contact our team.

It never hurts to seek out investing advice. Even the most experienced investors get investment advice, either from a single investment adviser or a trusted group. The key term here is trusted. If you’re considering opening an investment advisory account, it’s important to choose the right one.

Choosing the Right Investment Adviser

An investment adviser should serve as a trusted sounding board providing investment advice that is most in-line with your investment goals and strategy. As such, it’s important to go over these objectives with your potential adviser; don’t be afraid to ask questions. You should never be intimidated or feel pressured by an adviser or advisory firm. When choosing an investment advisor, be up front about your needs. Here are some common things you should address when considering any investment advisory account:

• Communicate your investment goals:
  • Set investment timelines
  • Discuss limits and risk tolerance
• Set service expectations
• Discuss associated costs and fees

These are just some of the fundamental things you should cover with any potential investment adviser. You should always come prepared with questions of your own that are tailored to your specific investment goals. After you have found an adviser you feel you can trust, make sure you understand your advisory contract. Although an adviser or firm may be the right fit for your investment needs, advisory contracts can be complex; outlining costs and fees for service, communication between you and your adviser and other terms and conditions. Before signing an agreement, make sure you go over any questions you have with your investment adviser. Common things to look for and consider are:

• Level of service
• Fee breakdowns and calculations
• Your responsibilities as an investor
• The responsibilities of your adviser
• How to communicate with your adviser
• Contract cancellation procedures

Investor Resources

These are just some easy tips to help you choose the right investment adviser. For even more helpful advice check out this SEC bulletin.

On Thursday, it was announced that the Securities and Exchange Commission (SEC), the nation’s top finance and securities regulator, had experienced a critical cyber security breach. The breach, which occurred in 2016, allowed hackers access to the SEC’s EDGAR system, a database which houses corporate filings and announcements for a multitude of Wall Street firms. The SEC hack has shaken investors and lawmakers as it poses serious questions regarding the SEC’s security measures and protocol. It is also possible that hackers may have profited on the insider info by trading on it. According to a Reuters report, the database contained sensitive, “market-moving information”. The announcement came as a shock to everyone and with concerns arising over the SEC’s ability to maintain and protect its security systems, you may be wondering what this means for your investments. For it’s part the SEC has taken steps to assure that the security breach has been addressed, however the SEC hack comes at a period of heightened concern over cyber security. This breach follows close on the heels of the massive Equifax scandal, in which hackers gained access to millions of customer records.

Security Protocol in Question

The SEC hack has raised questions in Washington among policymakers concerning what steps are being taken by regulators to prevent critical breaches like this one from occurring. SEC Chairman Jay Clayton will be on Capitol Hill on Tuesday, appearing before the Senate Banking Committee. The chairman is expected to come under fire from policymakers, who will demand a clear account of the exact nature and extent of the SEC hack. Ahead of this hearing, other financial and securities regulators have come forward with their cyber security measures.

Investor Resources

If you’d like to find out more about the SEC hack, read the full Reuters article here. For more regulatory news and investing tips, check out our blog.

This week, market analysts and investors saw Wall Street regaining upward traction. Dow and S&P indexes soared to record weekly gains, buoyed by a flurry of trading activity. According to a Reuters report, financial investing has been one of the major drivers, followed by industrial and tech.

Financials

• Bank of America, MorganStanley and Citigroup up 1 percent

Industrials

• Boeing and Caterpillar up 1 percent

This rebound comes ahead of the upcoming, two-day Federal Open Market Committee meeting at which Federal Reserve Chair Janet Yellen will speak. Investors will be looking for signals as to when new interest rate hikes might be announced. Investors are also watching for an announcement on the Fed’s plans to unpack much of its $4.2 billion portfolio of mortgage-backed securities and Treasuries The recent Wall Street rally also comes at a relatively calm period of uncertainty and market anxiety. Concern over global conflicts, as well as uncertainty over domestic policy has led many investors to hold back on riskier investments.

Calm Before the Storm?

Recent activity has reached record level. Dow and S&P recorded their best and second best weekly gains this year, respectively. However, there remains major uncertainty over future market outlooks. There is still uncertainty over how the Trump Administration will effect changes to current financial regulations as well as trade policy. Additionally, concern over foreign policy and rising geopolitical tensions has led to an apprehensive investment market. Until this rebound, financial investing, as well as other markets, had seen a slump after an initial, post-election boost.

Investor Resources

If you want to find out more about the recent, record-setting weekly gains, read the full Reuters article. For questions about protecting your investments or investment-loss recovery contact our team. Our expert legal team is here to ensure that you don’t fall victim to financial scams or investment fraud.

Review Your Insurance Settlement

Make sure you carefully review any insurance settlement you receive for damages. Before you accept it, make sure it makes sense. You should not be intimidated by your insurance provider, they are there for YOU. If something does not look right to you or you have a question, discuss it with your insurance company. Sometimes, it can be helpful to get a second opinion or another set of eyes to review your insurance settlement. An attorney specializing in insurance disputes or contract review can be a great resource to you when reviewing your claim. They can help you catch any issues and even provide some reinforcement if you end up disputing the claim amount. Hurricane Irma is projected to majorly impact Florida. It will likely result in extensive home and property damage as it passes through the state. If you file a claim and have questions about your settlement that the insurance companies won’t answer, contact an attorney for a review.

Wells Fargo Fake Accounts Scandal: By the Numbers

$185 million in fines and penalties to regulators $6.1 million in credits and refunds $910,000 in refunds for unauthorized online bill pay fees

Investor Resources

You can find out more info about the Wells Fargo fake accounts scandal here. If you believe you have been negatively affected by fake or unauthorized accounts, contact our team. You may have loss-recovery options. Check out our blog for even more investment tips and business news!

What You Need to Know About Initial Coin Offerings

In certain instances, virtual currency offered in an ICO is considered a security. As such, it is subject to regulation by the SEC. The SEC closely monitors companies and firms engaging in initial coin offerings. If there is suspicion of fraudulent activity, the SEC will actually suspend trading operations to protect investors. If you are offered to invest in an ICO, the best thing you can do is to first check with the SEC on the offering’s regulatory standing. You can also research a company and evaluate the investment risks yourself. When researching a potential ICO investment opportunity, be sure to check:

• To make sure the company’s public records and reports are up-to-date
• Take steps to verify, to the best of your ability, that company information provided is accurate
• Research the company’s recent trading activity, check for suspensions with the SEC

Investor Resources

If you have more questions about investing in initial coin offerings, you can find out more here. The SEC’s EDGAR database provides extensive organizational and financial information for many companies. You can access that database here. If you believe you invested in an ICO under false pretenses or misleading information, call us to find out your investment recovery options.

Watch Out for Insider Trading Schemes

If you’re just getting into investing, you’re going to get a lot of offers for instant returns or low to zero risk investment opportunities. You will need to learn early on that there is no such thing as a “zero risk, get rich quick” investment. If you’re approached with insider trading information, it is important that you not act on it and report it. Despite the temptation, it will only spell trouble. Chances are, any information you receive is already being tracked by regulators.

Investor Resources

If you receive an insider trading tips, you can report them to the SEC. Click here to file a report or complaint. For more financial news and tips for smart investing, check out our blog page!

Beware: Federal Retirement Savings Fraud

Have you ever heard of the Federal Employee Benefits Counselors (FEBC)? If you’re a government employee involved in a federal retirement savings plan, you may have been contacted by them. They may have offered education and counseling to you as a federal employee to help optimize your federal retirement savings benefits. That actually sounds pretty helpful, and from the name it you would think it must be affiliated with the government in some capacity… apparently not. The SEC has actually filed a complaint against the FEBC for fraudulently inducing TSP participants into invest in privately-issued annuities. By passing-off as being a government-affiliated entity, the FEBC managed to dupe federal retirement savings participants into moving funds to third-party investments, with no federal affiliation. If you participate in a TSP or some other type of federal retirement plan, here’s some things you should know about preventing investment fraud.

What You Need to Know About Your TSP

Your TSP is administered by the Federal Retirement Thrift Investment Board. They are an independent government agency. They never directly contact federal employees about investment opportunities and they do not endorse third-party investment counselors or services.

• Never trust any unsolicited investment offer by an individual or entity claiming to be affiliated with the government or TSP in any way.
• Never provide any personal security or account information by someone claiming to be affiliated with the TSP

Investor Resources

• To confirm whether or not a vendor is government-affiliated, you can contact the SEC’s investor assistance hotline: (800) 732-0330.
• If you have enrolled in an investment option with someone claiming to be affiliated with the TSP, contact us for a consultation.

403(b)

This investment plan option is typically available to employees of public education institutions, non-profits and religious organizations. It is what’s known as a tax-sheltered annuity (TSA) plan. Think of it as the non-profit version of a 401(k). With a 403(b), you can defer parts of your earnings to the designated annuity plan. Your employer may also offer options in which they contribute to it as well.

457(b)

This option is typically available to employees of state and local government agencies and non-profits. This type of plan is known as a deferred compensation plan. It allows you to put-off paying taxes on contributions to retirement savings until later years. Earnings made on retirement savings are also deferred.

Rules and Limits

With both retirement investing plans, there are rules and limits as to who is eligible, what plans are available to you, and how much can be contributed.

• Currently, both plans have contribution limits set at $18,000. However, this is subject to change year-to-year.
• Typically, employers select which plans you can choose from. They are usually a limited offering.

What You Need to Know about Retirement Investing

You need to choose a vendor and plan that suits your retirement investing goals. It’s also important to note that just because a plan is offered through your employer, it does not mean that the vendor has been vetted or endorsed by your employer. Before selecting any plan, make sure you research the vendors’ background and experience.

Resources

If you want to learn more about these retirement investing alternatives, read the SEC bulletin. If you want to learn more about protecting your investments, check out our blog for even more investing tips.

Common Buy-and-Sell Order Types

Market Order

Market orders are orders to buy or sell a stock at the best available price, i.e. market price. While market orders are typically executed immediately, it’s important to know that the price something last traded at is not necessarily the price you will get.

Limit Order

A limit order requires that a stock be bought or sold at a specific price or better.

• Buy limit orders can only be executed if the order is at limit price or lower
• Sell limit orders can only be executed if the order is at limit price or higher

It’s important to note that limit order may not always be executed. They depend on the market price reaching the set limit price.

Stop Order

Stop orders, also called stop-loss orders are orders to buy or sell when a stock reaches a specified value. When that value is reached, the order then acts as a regular market order.

• Buy stop orders are entered at prices above current market prices
• Sell stop orders are entered at prices below current market prices

Investor Resources

These represent only the three most common order types available. You can also combine order types to further suit your investing needs. To learn more about different order types and more on these common order types, read the full SEC bulletin. Check out our archives for even more news and tips!

Diversified portfolio or salad bar portfolio?

While novice investors are typically more prone to this mistake, even long-term investors can have this problem. Typically, this comes about due to lack of planning. You can’t just start building a diversified portfolio by grabbing anything that comes along. If you just start picking from all over the place, just piling on investments, that is the quickest route to making your portfolio a mess. In a recent article, Forbes refers to this as a “salad bar” portfolio.

What’s a salad bar portfolio?

You’ve probably seen (or maybe you’ve been) one of those the people going down the line at a salad bar, just piling on anything that looks good at the moment. By the time you leave the bar, your plate is loaded down with all sorts of bits and pieces. When its finally all heaped on the plate, then you realize you have way to much of everything and not enough of the stuff that matters. This is where the salad bar portfolio gets its name.

How to build a true diversified portfolio

In the article, Forbes offers up three tips for those seeking to build a true diversified portfolio:

• Make value-oriented, efficient investments
• Don’t invest based on short term gains
• Look at the big picture of a company before investing in it

We offer up an additional bit of advice if you’re investing with the help of a financial advisor. While a financial advisor can provide key insight and guidance in your investing, it’s important to remember that your are in charge of your investments. Some financial advisors or even broker-dealers are incentivized to encourage investments that will get them greater returns, not you. We encourage investors wanting to build a strong, diversified portfolio to set a a practical investment strategy and follow it.

Investor Resources

Read the full Forbes article to learn more about the risks of your diversified portfolio becoming a salad bar portfolio. If you believe you were misled in an investment by a financial advisor or broker-dealer, you may be entitled to investment-loss recovery.

One down, one to go

This settles at least one of the the two mortgage-baked securities lawsuits against RBS in U.S. courts. Another lawsuit remains pending with the U.S. Department of Justice (DOJ). According to the Reuters article, experts are estimating at least $10 billion will go towards the settlement. It is slated to be the largest fine ever paid by the bank in U.S. courts.

Other mortgage-backed securities lawsuits?

This settlement is also the last of the largest of the 17 mortgage-backed securities lawsuits the FHFA has brought against various banks since 2011, when it was named as conservator of mortgage lending giants, Fannie Mae and Freddie Mac. Since then, the FHFA has managed to recover nearly $18 billion in settlements from various big banks, according to a Reuters report. You probably recognize most of the 17 names on the FHFA’s list. They represent some of the U.S.’ largest investment banks. Here’s a quick recap of which banks the FHFA brought mortgage-backed securities lawsuits. The figures represent the settlements reached so far:

• Ally Financial
• Bank of America Corp. – $9.3 billion
• Barclays Bank – $280 million
• Citigroup, Inc.
• Suisse Holdings (USA)
• Credit Suisse Holdings (USA) – $885 million
• Deutsche Bank AG – $1.9 billion
• First Horizon National Corporation – $110 million
• General Electric Company
• Goldman Sachs & Co.
• HSBC North America Holdings, Inc.
• JPMorgan Chase & Co.
• Merril Lynch & Co./First Franklin Financial
• Morgan Stanley – $1.25 billion
• Nomura Holding America, Inc.
• Royal Bank of Scotland – $5.5 billion
• Société Générale – $122 million

Resources

You can learn more about the FHFA’s ongoing mortgage-backed securities lawsuits on their website. To learn more about how to protect your investments against securities fraud or to recover investment losses, contact our team of investment-loss recovery attorneys. Check out our blog to stay up-to-date on business and investment news along with legislative updates.

However, did you know that part of Dodd-Frank requires banks to submit a financial doomsday plan outlining how they will dissolve in the event of a catastrophic collapse?

Essentially, they are “living wills” that show what and how assets would be liquidated in a bankruptcy. The big catch is, these plans cannot rely on taxpayer bailouts. Banks must submit practical, realistic plans that leave no room for optimism.

So who’s checking this financial doomsday plan?

Banks must submit their “wills” to The Federal Reserve and the Federal Deposit Insurance Corporation for their review and approval. These are rigid reviews that show no leniency towards a bank. And its not just a an informal thing that banks submit as a symbolic gesture. These plans play a significant role in a bank’s continued operational existence. Dodd-Frank allows regulators to take extensive measures to make sure that a bank’s dissolution plan is credible.

Which banks were required to submit a financial doomsday plan this year?

Most of the nations top big banks were required to submit plans, including:

• Bank of America
• Bank of New York Mellon
• Citigroup
• Goldman Sachs
• JP Morgan
• Morgan Stanley
• State Street Corp
• Wells Fargo

American Insurance Group and Prudential Financial were given one-year extensions to submit a workable plan.

Investor Resources

You can read each bank’s financial doomsday plan on the Fed’s website. For more legal and financial news, check out our blog. Contact our investment-loss recovery attorneys if you believe you have been the victim of stock fraud or broker misconduct.

What are bad actors?

FINRA defines a bad actor as one within the financial industry “who seeks to evade regulatory requirements and harm investors for their own personal gain”. Essentially, they’re con artists; fraudsters. I’m sure you’re familiar with that old adage about a few bad apples, right? Well, that’s exactly what Financial industry regulators have to say about bad actors. In his statement, FINRA President & CEO, Robert Cook spoke about the danger that bad actors pose to the overall stability in the industry as a whole. Bad actors have the capacity to ruin investor confidence in their broker-dealer and mar the reputation of the entire industry through their actions.

Spotting the bad apples

If you’re involved in the financial industry as an investor, it’s important to be able to spot bad actors. FINRA has comprehensive preventative measures in place to seed-out bad apples but every once in a while, some are bound to slip through the cracks. Here’s some things you should know before doing any business with a new broker-dealer.

License & Registration

No matter what security you’re investing in, make sure your broker-dealer is properly licensed and registered. This means they must be not only a licensed broker, but licensed to do the specific function they are offering to you. The broker must also registered with a licensed brokerage firm.

Account Monitoring

It is especially import to review your monthly account statements. Even if you are a passive investor who prefers to let your broker-dealer make investments as they see fit, you need to monitor your account activity and statements. Watch out for any unusual investments involving large sums, or irregular movement and contact your broker-dealer if you see anything unusual.

Aggressive Solicitation Practices

Aggressive or unwarranted solicitation of services or information should be an immediate red-flag. If you have been receiving repeated calls, emails or requests for correspondence from an individual claiming to be a broker-dealer associated with your account, you need to verify they’re identity.

Investor Resources

FINRA offers comprehensive investor support and resources. Click here if you want to learn more about filing a complaint or other services Contact our investment loss recovery attorneys if you believe you or a family member has been affected by bad actors.

Corporate tax cuts still on the way?

Optimism has since waned. As Congress has struggled to keep pace with a constantly in-flux administration with an ever-shifting stance, it has proved difficult for legislators to nail down details. Neither Congress nor the White House has yet announced any definitive plans for deregulation or tax cuts. In fact, it seems there won’t be any definitive plans for some time. According to a Reuters report, the White House says a detailed tax plan shouldn’t be expected until September. This leaves little time for Congress to pass a tax reform bill for 2017. Meanwhile, there seems to be some debate has to the scope of the intended tax cuts. The Trump Administration is calling for extreme cuts – 15 percent from the current 35 percent – whereas most Republicans have a more moderate 20 percent in mind. Even still, there’s further debate among Republicans has to how tax cuts will affect the U.S. deficit.

Blessing in disguise?

Maybe it’s a good thing there are no definitive tax cut plans. The White House and Capitol Hill should work closely together on an appropriate tax reform. Massive corporate tax cuts would take a drastic toll on the budget deficit. Depending on the scope of businesses and industries that a 15 percent tax rate would cover, it could increase the deficit $2.4-$4 trillion over the course of a decade.

Puerto Rico’s Bankruptcy Overview

For those of you who aren’t aware, Puerto Rico’s bankruptcy is the largest municipal bankruptcy filing in U.S. history. The island territory is suffering high poverty rates, massive unemployment and a breakdown of public health systems. Puerto Rico’s pension fund is currently nearly 100 percent under-funded, with $50 billion in pension debt. Additionally, it has $70 billion in bond debt.

Puerto Rico’s Retiree Committee

The Trustee’s appointment of a committee without formal court approval reflects a critical situation. Puerto Rico is almost completely unable to pay out benefits on its largest public pensions. This represents the largest pension hole for any U.S. state or territory in history.

What’s more, the federal board overseeing debt-restructuring has called for major cuts to pension funds to cure insolvency. In response, more than 90,000 retirees and pensioners have come together requesting representation during negotiations. While it seems that the Trustee concurs, it has reaffirmed that the Trustee reserves the Authority to select the members of the retiree committee. According to the Reuters report, the Trustee hopes to have a committee selected by June 16th.

Want to Know More?

If you’d like to know more about Puerto Rico’s bankruptcy and retiree committee-appointment, read the full Reuters article here. For more bankruptcy news and updates, visit our blog. If you have questions about filing for bankruptcy or bankruptcy procedures, contact us today.

More Than Previously Expected

Now it looks like it’s going to take a lot more than they thought. According to a recent Reuters report, the number of individuals affected by the accounts fraud scandal is far more than previously expected. In fact, it’s nearly double the initial figure. What was once nearly 2 million unauthorized account creations has now ballooned into 3.5 million. While the recent estimate is based on new case discoveries and hearings, Wells Fargo attorneys claim that it is largely “hypothetical” and “unverified”. Attorneys representing plaintiffs concur that it may be “over-inclusive”, but that the estimation provides a reasonable base for total compensation to plaintiffs.

Can a Settlement Be Reached?

Understandably, Wells Fargo has been keen to settle the matter. The big bank’s attorneys have already increased its initial settlement figures from $110 million to $142 million to account for more-than-expected numbers of affected accounts.

Preventing Future Accounts Fraud

The best method of preventing becoming a victim to accounts fraud is through awareness and education. Don’t be intimidated by big banks. You have the right to financial security. Make sure you regularly review all current accounts and monthly statements with any financial institution. You can follow our blog to stay up to date on legal tips, news and insights. Contact us with any legal questions or concerns regarding you financial security.

When Britain announced its decision to formally leave the European Union (EU), it raised a lot of uncertainty. While the decision caused global unsettling, probably the most anxious was the international investment banking community. Until now, Britain, specifically London, has been the undisputed epicenter of investment banking, next to Wall Street. In fact most top-tier U.S. investment banks housed their international headquarters in London. Now, as Britain enters into formal exit discussions, these banks are beginning to look elsewhere. Earlier this week, Bloomberg reported that JP Morgan Chase & Co. plans to move hundreds of London-based bankers to Dublin, Frankfurt and Belgium. Then, Reuters recently reported that five top U.S. investment banks had indicated a huge employee shift to Frankfurt. According to the report, JP Morgan, Morgan Stanley, Goldman Sachs, Citigroup, and Bank of America plan to move over 1000 employees to Frankfurt.

Why Investment Banks are Leaving London

While no one has made any sudden movements or signs of jumping ship, the decision to start moving small numbers of employees to outlying EU headquarters is troubling sign for London. Of course, any major decisions depend on the outcome of negotiations between Britain and the EU. However, Britain’s decision to leave the EU greatly hampered its future as a central hub for international investment banking. Investment banks need to be firmly connected to the EU’s central currency system and relaxed trade regulations for countries of the 28-member bloc. Britain has been a logical international headquarter for U.S. investment banks due it’s close ties to both the U.S. and Europe. However, it no longer seems like a feasible option.

London’s Future as a Financial Capital?

While a major shift by investment banks elsewhere is unsettling to the U.K. government it shouldn’t be seen as apocalyptic. Geographically, London remains globally-central and is still a major hub for trade and commerce. It may lose its position as the world’s financial capital, but international banking operations are not expected to cease completely.

8 Tips for Protecting Online Investments

• Password
  • You should choose a strong password for your online investment account. It should not be easy to guess and should feature capital letters, numbers and special characters. Never use your name or any other personal information such as date-of-birth or social security numbers in your password. Never share or send your password to anyone electronically.
• Use Two-Step Verification Methods, When Possible
  • A two-step verification method is an extra security method provided by most online investments platforms. When an investor logs in to an unrecognized device, it sends an additional access code to the user’s phone or email that must be entered before access is granted.
• Biometric Safeguards
  • If you have online investments, ask your broker or firm if biometric security measures are offered. Biometric security measures can include features like voice-recognition, fingerprint-scanning or face-recognition.
• Use Different Passwords for Different Accounts
  • Its never a good idea to use the same password for all your online investments. For each investment account, you should use a different, complex password.
• Avoid Public Computers
  • It is best if you can avoid using public computers to check on your online investments. If you must, never leave the computer unattended, make sure your login information is not saved and that you do not remain logged in after use.
• Be Careful on Wifi Connections
  • Even if you use a wifi connection at home, make sure you have proper security and anti-fraud measures in place for your network.
• Avoid Unverified Email Links
  • Never click a link in an email if you can not verify the firm or institution that sent it to you. Links from unverified or illegitimate sources can contain malware or viruses.
• Check Your Account Statements
  • You should always regularly check your account statements for your online investments. Review any trade confirmations and contact your broker or firm immediately if any discrepancies arise.

Additional Resources

• Investors can access more tools and resources for protecting their online investments on the SEC’s website
• If you believe you have been a victim of investment fraud, contact Savage Villoch Law to find out your recovery options.