7 Steps To Protect Your Schwab Accounts From Hackers

In today's digital age, protecting your investment accounts is more critical than ever. Hackers are becoming increasingly sophisticated in their tactics, finding new ways to breach security and access personal financial data.

One alarming situation that I encountered involved a hacker impersonating one of my clients to request funds from their account.

Fortunately, we caught on to the scam quickly, but it’s a stark reminder of how vulnerable our accounts can be. With this in mind, I’ve compiled 7 essential steps to help safeguard your investment accounts with Charles Schwab from potential fraud and hacking.

1. Secure Your Email

Your email is often the first point of contact for hackers trying to access your accounts. If your email gets compromised, hackers can reset passwords for your financial accounts. Here's how to secure your email:

• Enable Two-Factor Authentication: While it may seem inconvenient, 2FA adds a significant layer of security. When logging in, you’ll need to enter a code sent to your phone in addition to your password.

• Use a Recovery Email Account: Set up a backup email for account recovery. This will help protect you if a hacker compromises your primary email account.

• Reset Passwords Regularly: Change your email password every few months, especially if you suspect any suspicious activity. Avoid saving passwords in browsers, as these can be compromised as well.

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2. Use Strong, Unique Passwords

When it comes to securing your financial accounts, strong passwords are a must. Avoid using easily guessable information like birthdates or Social Security numbers. Instead, follow these tips:

• Create Unique Passwords for Each Account: It’s tempting to use the same password for everything, but this can lead to problems if someone cracks it.

• Consider a Password Manager: These tools can help you generate and store complex passwords securely, so you don’t have to remember them all.

• Reset Passwords Every Six Months: If you’re notified that your password may have been compromised, change it immediately.

3. Keep Your Browser Up to Date

Whether you're using Google Chrome, Firefox, or another browser, it’s important to keep it updated. Security patches are often included in updates.

• Avoid Public Wi-Fi: When logging into your investment accounts, avoid using free public Wi-Fi, such as at coffee shops or hotels. Public networks can be insecure and give hackers access to your data.

• Be Careful Where You Log In: Only access your accounts from trusted devices and networks to reduce the risk of your data being intercepted.

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4. Set Up Online Access for Your Schwab Account

Some may think that not setting up online access to their Schwab accounts will keep them safer. However, this can actually leave your account more vulnerable if a hacker gains access to your information. It’s a good idea to set up online access so that you can monitor your accounts and take action quickly if necessary.

• Secure Your Online Access: Once you've set up your Schwab online access, make sure your contact information is up-to-date and add a trusted contact who can help if needed.

• View-Only Access for Family Members: If you want to give family members access to your account information, you can set up view-only access. This allows them to see your account without making any changes.

5. Enable Alerts on Your Schwab Account

Setting up alerts within your Schwab account is an excellent way to monitor any unusual activity. You can choose to receive notifications via email or text whenever there is a trade, money transfer, or account change. These alerts will help you spot potential fraud before it becomes a serious issue.

• Monitor Transactions Closely: If you notice any suspicious activity, reach out to Schwab or your financial advisor immediately to investigate.

6. Review Your Monthly Statements for Suspicious Activity

Take the time each month to review your Schwab statements. Look through the transactions and check for any unauthorized withdrawals or transfers. If you notice anything suspicious, act quickly to prevent further damage.

• Destroy Paper Statements: If you receive physical statements, be sure to shred them before discarding them. This prevents sensitive information, such as account numbers, from falling into the wrong hands.

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7. What to Do If You Think You’ve Been Hacked

If you believe your Schwab account has been compromised, or if your personal information has been stolen, contact Schwab immediately at 1-800-435-4000. Here’s what you should do:

• Report Suspicious Activity: If you think someone is trying to transfer money from your account, Schwab can flag it to prevent the transfer.

• Change Your Passwords: Immediately change your passwords if you suspect any breach.

• Lock Your Credit: Contact the major credit bureaus (Experian, TransUnion, and Equifax) to place a freeze or fraud alert on your credit report.

• Notify Your Financial Advisor and Authorities: Inform your financial advisor and, if necessary, file a report with the police or the FBI’s Internet Crime Complaint Center.

Bonus Tip: The Schwab Guarantee

Charles Schwab offers an added layer of protection through the Schwab Guarantee, which protects you against fraud. However, be aware that the guarantee does not cover situations where you share your information with third-party websites or use unsecured services to access your accounts. To fully benefit from the Schwab Guarantee, ensure you're following these other security measures.

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Final Thoughts

As hackers become more sophisticated, it’s essential to stay vigilant and proactive when it comes to securing your financial accounts. By following these seven tips, you can significantly reduce your risk of falling victim to fraud and keep your Schwab investment accounts safe. Always stay one step ahead and don’t wait until it’s too late.

If you have a question or topic that you’d like to have considered for a future episode/blog post, you can request it by going to www.retirewithryan.com and clicking on ask a question. 

As always, have a great day, a better week, and I look forward to talking with you on the next blog post, podcast, YouTube video, or wherever we have the pleasure of connecting!

Written by Ryan Morrissey

Founder & CEO of Morrissey Wealth Management

Host of the Retire with Ryan Podcast