Security experts say it's now crucial for advisors to understand that the fraud landscape has changed: Planners and their clients are both targets, and new federal rules (and custodians' policies) make advisors primarily responsible for fraud prevention. 

Advisors and other experts recommend a number of techniques for keeping clients safe: Use multiple sign-offs. To ensure no one has cut any corners, require that multiple people approve a disbursement. “Any request for money gets looked at by several people in our firm,” says Roger Pine, a partner at Briaud Financial Advisors. “On one of the fraud attempts we caught last year, a couple of employees were fooled, but the main advisor on that client was not.” 

Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access