What’s new: Cybercriminals are now targeting brokerage accounts using sophisticated phishing kits to execute a ‘ramp and dump’ scheme. This involves manipulating the prices of foreign stocks by using multiple compromised accounts to buy shares and then selling them at inflated prices. The FBI has issued warnings regarding this scheme, which has evolved from traditional phishing tactics to focus on brokerage services.
Who’s affected
Customers of major brokerage platforms, particularly those using multi-factor authentication methods that can be phished, are at risk. Notable firms mentioned include Schwab, Fidelity, and Vanguard, which all have varying degrees of vulnerability to these phishing attacks.
What to do
- Implement stronger multi-factor authentication methods that are less susceptible to phishing, such as physical security keys.
- Educate users on recognizing phishing attempts, particularly those that spoof brokerage communications.
- Monitor accounts for unusual trading activity and report any suspicious transactions immediately.
- Regularly update security protocols and stay informed about emerging fraud trends.
