Schwab has identified a new twist on the "smishing" fraud threat which is being used by fraudsters.

 

This version begins when the client receives a text message prompting them to "verify a transaction"—clicking the link leads the unwary investor to a fraudulent website that mimics Schwab's login page, where they are prompted to enter their credentials. Once the credentials have been entered, the fraudsters use them to access Schwaballiance.com. 

 

The fraudulent website may also prompt the client to enter a two-factor verification code that they would automatically receive from Schwab, which once submitted allows the fraudster to complete the login process.

 

Once they have access, the fraudster will then change the security token on the account so that it points to a device in the hands of the criminals, instead of the client's own device. At this point, the client is effectively locked out of the account, and the fraudster can begin initiating wire transfers that rapidly drain assets from the account.

 

Fraudsters exploit market conditions like those we're seeing now—times of uncertainty and volatility—knowing that an anxious investor is less likely to think carefully about security measures when their investments are top of mind. The best defense is heightened vigilance to protect your account.