FINRA Reminds Firms to Be Aware of Fraudulent Options Trading in Connection With Potential Account Takeovers and New Account Fraud

Regulatory Notice 20-32

Summary:

FINRA has recently observed an increase in fraudulent options trading being facilitated by (1) account takeover schemes (sometimes referred to as account intrusions), through which a bad actor gains unauthorized entry to a customer’s brokerage account; and (2) the use of new account fraud1 by a bad actor who fraudulently establishes a brokerage account through identity theft. 

This Notice provides member firms and associated persons with information regarding options transactions in connection with these account takeover and new account fraud schemes to help identify, prevent and respond to such activity.

Questions regarding this Notice should be directed to:

  • Danny Mileto, Vice President, FINRA Market Regulation, at (212) 457-5323 or by email; or
  • Kathryn Moore, Associate General Counsel, FINRA Office of General Counsel, at (202) 728-8200 or by email.

View Full Notice Here: