Security experts say it's now crucial for advisors to understand that the fraud landscape has changed: Planners and their clients are both targets, and new federal rules (and custodians' policies) make advisors primarily responsible for fraud prevention.
Advisors and other experts recommend a number of techniques for keeping clients safe: Use multiple sign-offs. To ensure no one has cut any corners, require that multiple people approve a disbursement. Any request for money gets looked at by several people in our firm, says Roger Pine, a partner at Briaud Financial Advisors. On one of the fraud attempts we caught last year, a couple of employees were fooled, but the main advisor on that client was not.
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