FINRA Warns Firms Regarding Fraudulent Account Transfers

Posted on April 5th, 2023 at 1:54 PM
FINRA Warns Firms Regarding Fraudulent Account Transfers

From the desk of Jim Eccleston at Eccleston Law 

The Financial Industry Regulatory Authority (FINRA) is warning financial advisory firms about a recent increase in fraudulent transfers of client accounts via the Automated Customer Account Transfer Service (ACATS).

FINRA released Regulatory Notice 23-06, which serves as a follow-up to Regulatory Notice 22-21, which noted potential indicators of ACATS fraud and shared effective practices for minimizing the risk of fraud. Notice 22-21 provided guidance on how third parties could initiate fraudulent transfers of client assets on ACATS as well as contact information for reporting potential fraud.

FINRA noted that its regulatory programs, including its examinations and investigations, have uncovered increased instances of ACATS fraud. Regulatory Notice 23-06 outlines a host of indicators of ACATS fraud as well as practices for mitigating the fraud.


Eccleston Law LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.

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