Online broker Charles Schwab issued a guarantee against any and all losses from unauthorized account access, the latest online trader to calm customers' jitters about phishing scams and identity theft.
The Charles Schwab Corporation announced today a security guarantee covering 100% of any account losses that arise from unauthorized account activity. The guarantee is effective immediately and covers clients of the entire Schwab family of companies. Clients need take no action unless they suspect that their account has been accessed without their permission or knowledge.
"It has always been our practice to make clients whole in cases of unauthorized account activity. Our new security guarantee turns that historic practice into a public promise," said Charles R. Schwab, founder and CEO, in announcing the guarantee. "We have a broad array of internal security systems and measures in place that protect the safety of client accounts at Schwab. Given rising public concerns over identity theft and cyber-fraud, we think adding a clear and simple guarantee will contribute to even greater peace of mind for our clients."
Schwab follows competitors in posting a guarantee; in January, ETrade launched what it called "Complete Protection Guarantee" to cover all losses originating from fraud.
According to data gathered by MarketWatch, around half of Schwab's 7 million clients do business with the company online. E-Trade has 3.6 million of online accounts throughout the world. Ameritrade and Fidelity Investments are also popular destinations for online transactions.
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