|Hackers Disrupt On-Line Brokers|
|Jonathan Keehner (email@example.com)|
Wed, 25 Oct 2006 17:25:45 -0500
By Jonathan Keehner and Kevin Drawbaugh|
High-tech crooks using spyware are costing U.S. discount brokerages
The U.S. Securities and Exchange Commission warned earlier this month
TD Ameritrade Holding Corp. on Tuesday became the latest brokerage to
Harder hit was rival E*Trade Financial Corp., which last week said its
Both brokerages guarantee to repay clients who lose money through such
"During the quarter E*Trade, like a number of our competitors,
TD Ameritrade Chief Executive Joseph Moglia told Reuters that all
He called the $4 million hit "not material at all."
"This gets a lot of attention but it's not affecting the share price,"
TD Ameritrade shares fell 79 cents, or 4.8 percent, to close at
Moglia blamed the share price fall on a cut on its projections for
Both firms said they were strengthening their defenses.
"We've seen that level of fraud in the last three weeks or so reduced
But Gwenn Bezard, an analyst with Boston-based consultant Aite Group,
"It's a reminder that though you may have stronger authentication it
Both E*Trade and TD Ameritrade said they are working with
About 25 percent of U.S. retail stock trades are made by online
In many of the schemes outlined recently by SEC officials, crooks will
The program then e-mails the stolen information back to the thief, who
Once inside, the thief may sell off an account's portfolio and take the
Copyright 2006 Reuters Limited.
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