Hackers have been breaking into customer accounts at large online brokerages in the United States and making unauthorized trades worth millions of dollars as part of a fast-growing new form of online fraud under investigation by federal authorities.
E-Trade Financial Corp., the nation's fourth-largest online broker, said last week that "concerted rings" in Eastern Europe and Thailand caused their customers $18 million in losses in the third quarter alone.
Another company, TD Ameritrade, the third-largest online broker, also has suffered losses from customer account fraud, but a spokeswoman declined to quantify the amount yesterday. "It is an industry problem," spokeswoman Katrina Becker said. "It does continue to grow."
