SEC Warns Hackers Prey On Brokerage Accounts

Law360, New York (October 13, 2006, 12:00 AM EDT) -- Securities regulators raised concerns Friday that hackers were targeting U.S. online brokerage accounts.

Regulators have noted a rise in theft from and unauthorized trading in online brokerage accounts, U.S. Securities and Exchange Commission Deputy Enforcement Director Walter Ricciardi said at a legal conference.

He said the SEC intends to take action before the cyber-attacks become a larger problem.

Online investors make about 25% of U.S. retail stock trades through approximately 10 million online accounts, according to brokerages regulator NASD.

Using underhanded tactics, hackers can get passwords...
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