WARNING: Scottrade eCheck

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I think what you really want to change is your checking account number, that's the one they have all the information for.

Scottrade account comes with a password, which wasn't mentioned most likely because it is stored on a scottrade system, not the third party.

Read the following complaints I had informed scottrade about, but absolutely no commitment of resolving them.

http://www.complaints.com/directory/2005/april/25/24.htm

http://www.complaints.com/directory/2005/june/30/37.htm

Good Luck

I have been pretty happy with Scottrade ...I don't like the fact that they don't offer ach transfers.

They also don't offer a nice way to offer suggestions for improving their service like a forum, etc....

This latest news is very unsettling and I am going to contact them tommorrow about what the situation is.

Maybe its time to start looking into other brokers....FirstTrade was suggested...Who else is there? ACH transfers would be very nice...Low <= 7.00/trade would be nice...as well as no maintenance fees....

One more thing I am looking at....I really like Medved Quotetracker...I have been using it for as long as its been out and am impressed with its features..I am going to look for brokers who offer this tool as their main quote and trading tool..On the medved page they feature all their feeds as well as brokers who offer their tool. I recommend FW's checking it out and offering their opinion on this.


SeriusBlack said: [Q]It all begins with a simple letter to your Congressman/Congresswoman...

propcgamer said: [Q]wow thats horrible

best of luck to you!

the government really needs to do a hard crack down on these banks who are so careless with our extremely private and important information


hahahahahahahahahahahahahahaha you expect those boneheads to do anything?

If a fruadulent ACH takes place, who eats the cost ?

Me, or the bank ?

And a second question: is a bank routing number, customer name, and account number all that is required to process an ACH pull ? Or is a password involved somewhere ?

can anyone tell me how to put fraud alert on the credit report?

For those of us with scottrade accounts but who have not signed up for the eCheck service, does this mean we are unaffected by this?

EricGo said: [Q]And a second question: is a bank routing number, customer name, and account number all that is required to process an ACH pull ? Or is a password involved somewhere ?

Since ACH can only be initiated by a bank, the bank is still responsible if you keep monitoring
any fraudulent transactions in your bank account. Banks are guaranteed by FDIC.

Got my letter on Friday. Put fraud alert on my credit history. Can it hurt my credit history?
Will call my bank and Scottrade tomorrow.

What a fuc*&^g pain in the a%$!

Quote:"Scottrade is strongly urging customers who use their Social Security number as their driver's license or state ID card number to place a fraud alert on their credit file."

If you did not use your SS number when you filled out the echeck form, you should be ok...

For those of you who have the 'How can you blame ScottTrade for a mistake by a 3rd party?' mentality, are you nuts?

As a ScottTrade customer you have have no relationship with Troy Group. Your contract is with ST and it's their responsibility to protect your information, period. If they choose to use a 3rd party vendor, it's their responsibility to make sure that they protect the information to the same level of diligence and their responsibility to deal with any problems that arise.

Just a few similar examples... you buy a new Toyota. After 6 months, the front seat falls apart. The seat was made by Lear. So, who do you complain to... Toyota or Lear?

You buy a new Dell laptop... after 2 weeks the hard drive dies. Who do you complain to... Dell or Hitachi?

You send a package with the US Postal Service. It doesn't arrive. Who do you complain to... the USPS or the private long haul trucker contracted with to haul the mail cross-country?

Good luck to all who were impacted (from a Power e*trade customer)!

bp1169 said: [Q]I wonder how long ago this happened? The press release is dated October 25.

Scottrade's letter says that they were notified on October 25th as well. Pretty sad that it took a month to receive our letters. Haven't they heard of email? The least they could do is to put a warning on their site once a user logs in, like they do for trade confirmations.

[Q]Since ACH can only be initiated by a bank, the bank is still responsible if you keep monitoring

the csr i spoke with at my bank was very clear about this. she said that if someone were to act on that information by forging a check or initiating an ach transfer then i'd be basically SOL. it's not covered by Visa protection, she did not mention fdic. she said that i would have to report it to the fbi/police and hope they apprehend the person.

the first thing that i did was disable ACH's and wire transfers out of my account. this will prevent your friendly neighborhood nigerian from pulling money out via a fraudulent electronic transaction.

the next thing i will do is to close and reopen my account to get a new account number. I could not do this quick enough due to having to wait for some items to settle. this will prevent the scammers from ordering up checks with my information on them.

as an added precaution i changed all my passwords and will get new account #'s at scottrade.

Folks, this is bad. scottrade as a financial institution is responsible to safeguard my data. a third party company should pass a security audit by them.

furthermore, it is inexcusable that scottrade took more than a month to notify us of this breech.

finally, scottrade should purchase a year of credit protection for everyone affected. i'm spooked enough that if they don't i will pay for it. Has anyone had any luck in asking scottrade to pony up the bucks? I could friday evening just for the heck of it and the individual's voicemail box was full. Go figure.

piss, piss poor.



<img src="i/expressions/face-icon-small-mad.gif" border=0>

I got the dreaded letter today too. How do I get the credit alert initiated?


SegaRob said: [Q]For those of us with Scottrade accounts but who have not signed up for the eCheck service, does this mean we are unaffected by this? Yes, you are unaffected, Scottrade was not hacked, Troy group was, I received my letter on Sat. at the bottom where they give suggestions on what to do, they don't include change your bank account #, but they do suggest changing Scottrade account #, odd.

Received this letter a couple days ago. Now that I've read this thread I will take the letter more seriously. Closing bank accounts will be a pain in the rear, but looks to be necessary. I can't remember if I used my SSN with the ACH or not, but probably best to perform all tasks stated above for safety.

sathishk1973 said: [Q]can anyone tell me how to put fraud alert on the credit report?

Check this link. Call one of the credit agencies.

Scottrade Security

Anyone interested in information on what a fraud alert actually does should check the following link.

What is a Fraud Alert?

Closing a checking account is easy --

Making sure checks and ACH pulls do not bounce will be a PITA.

So, I have a question, anyone please clarify this for me. This eCheck system identity loss should only affect the bank account which is used for eCheck, am I right? The reason I am asking is I have two other bank accounts besides the one I use for echeck for Scottrade. I am wonderif I need also do something for my other bank account. Thanks very much

I felt very bad when I recieved my letter.

cellcycle said: [Q]So, I have a question, anyone please clarify this for me. This eCheck system identity loss should only affect the bank account which is used for eCheck, am I right?

No. It does not affect any bank account at all.
If you write a check to any one he/she can get your account information from the check any way.
It is your responsibility to monitor your bank transactions regularly since any one can pull
money from your checking account without your knowledge. Since only banks can initiate this transactions you can always claim against the bank which initiated the ACH provided you report it within a reasonable time.

This sucks. They should pay for a year of credit monitoing service. Time Warner did this for all their employees and ex-employees when they lost backup tapes.

Thank you, adityanm

So, if I understood correctly, the worst will be those "people" could use my identity to ACH withdraw money from my account, or open new credit account under my name. Either changing the account number or close it will solve this, and put a fraud alert to my creditor. Am I right?

This is first time i run into this, I just want to evaluate what will be the worst scenario could happen to us.

BTW, i have ask scottrade to get new account number, and change my ID and PW of bank account, I am thinking I will go to my local bank to change my account munber also, and put a fraud alert. So, these could reduce the loss as much as possible. I also want to only leave a small amount of money on my bank account, and move to other accounts. Would your guys like to share what you have done. Are these the most urgent and right thing to do.



adityanm said: [Q]cellcycle said: [Q]So, I have a question, anyone please clarify this for me. This eCheck system identity loss should only affect the bank account which is used for eCheck, am I right?

No. It does not affect any bank account at all.
If you write a check to any one he/she can get your account information from the check any way.
It is your responsibility to monitor your bank transactions regularly since any one can pull
money from your checking account without your knowledge. Since only banks can initiate this transactions you can always claim against the bank which initiated the ACH provided you report it within a reasonable time.

cellcycle said: [Q] Would your guys like to share what you have done. Are these the most urgent and right thing to do.

As I said, I am not scared and am not doing anything new. I always check all my online accounts atleast once every day for any unauthorized transactions. If I find anything suspicious I will report immediately. That is all.

adityanm said: [Q]As I said, I am not scared and am not doing anything new. I always check all my online accounts atleast once every day for any unauthorized transactions. If I find anything suspicious I will report immediately. That is all.

I'm thinking the same thing. Although it really SUCKS that a financial institution such as Scottrade would lose our info like that, I'm not seeing the full extent of the problem. They didn't get MY social security information -- but they DID get my routing number and checking account number.

What exactly is the difference between these hackers getting that info and me giving a personal check to ANYONE else? Looking at the bottom of my check will give you my routing number and checking account number. I've never freaked out about that in the past, so why do it now?

As long as I keep an eye on this account (which i do every day), then I don't see what else could happen...

Is there chance "they" will use your information to open a new credit. I see that is the point to put fraud alert. Right?


Darq said: [Q]As long as I keep an eye on this account (which i do every day), then I don't see what else could happen...

cellcycle said: [Q]Is there chance "they" will use your information to open a new credit. I see that is the point to put fraud alert. Right?

Sure.. putting a fraud alert on your credit report will help you notice if someone is opening up credit in your name. (I'm actually in the middle of a free one year "alert" trial that tells me when there's any change on my report). But from what I understand in this case, "they" only got your social security number if your username or account number had your SSN embedded within it.

I could be wrong -- but it's getting more and more difficult to open up credit in someone else's name without their SSN. However, there's always the chance that someone could get your SSN in other ways (or even figure out how to open up credit WITHOUT the SSN), so you should always check your credit reports AT LEAST once a year to make sure there aren't any surprise accounts waiting in there...

... so I guess what I'm saying is that while THIS specific security lapse sucks, it doesn't change the way I've been monitoring my accounts/credit on a daily/yearly basis.

I'm switching to Firstrade

kdam001 said: [Q]I'm switching to Firstrade

I am switching to MB Trading. Just $1 per trade.

[Q]As I said, I am not scared and am not doing anything new. I always check all my online accounts atleast once every day for any unauthorized transactions. If I find anything suspicious I will report immediately. That is all.

FDIC does not insure against fradulent transactions.

On the brighter side, scottrade offered an update on their website. Seems they don't understand why their customers are so disappointed in them. http://www.scottrade.com/security/


What really pisses me of is that today is the 28th and I have not received a letter or anything from them yet. Thanks to our community, I read about this over the weekend. I put a fraud alert on my credit as well as my wifes. I went to BoA today and opened a new checking acount and closed the old one.

Shame on Scottrade for not following up with us.....

They will loose a lot of customers for their handling of this......

I had the same issue and then they reminded me that when you sign up for the Elite web site it states they don't support anything less than Windows 2000. I think if you call they have since added the functionality in for 98 and ME. I also found out Microsoft is no longer supporting anything less than 2000.

MrA2u,

Did you use eCheck? I think they only sent this out to the users like us who signed up for it.

I called their compliance department twice (once last week and then today). I spoke with a courteous customer service rep who gave me his extension etc. I offered him my suggestions. Pick up the tab for signing up for Equifax Credit Watch (family plan - they lost my wife's info to the hacker as well) that will cost $159.00 per year for seven years. I used the seven years because Credit reporting agencies rotate information every seven years. He said he'll talk to their risk management team and let me know in a few days.

Fingers crossed. <img src="i/expressions/face-icon-small-sad.gif" border=0>

Yes I signed up about 3 months ago. Did not get an opportunity to use it though.

Same problem with me, I've signed up with their echeck service but never used it. No letter so far. Will wait to see what their customer service rep has to say on this matter.

I got my letter today.

shanni said: [Q]I got my letter today.

same here, sigh.

It's really annoying.

be careful where you transfer to. Troy Group has thousands of clients, including Ameritrade, Fidelity, and many of the Fortune 500 companies. They are in the same boat as Scottrade. At least Scottrade has informed people of what happened. Have any Ameritrade customers gotten anything about compromised information???<img src="i/expressions/face-icon-small-confused.gif" border=0>

The only way anyone could have gotten your info is if you actually used the e-check feature. I dont think your info would have been compromised if you merely signed up for the service. You actually have to physically go into the site and enter all the info that they are saying may have gotten compromised (dl #, name, address, etc). I wouldnt worry about it if you never actually used it.



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