Fraud Alert: When Someone Claims to Be Calling from Schwab
Imagine receiving a phone call from someone who says they're with Charles Schwab's fraud department. They explain that suspicious activity has been detected in your investment account and they need your help to stop an unauthorized transaction.
The caller sounds professional. They may know your name, have information about your account, and appear to be calling from a legitimate Schwab phone number. They might even direct you to a convincing website or send you an article about the supposed security threat.
Then they ask you to click a link, provide a security code, or move money to another account to keep it safe.
This is exactly the type of situation we want our clients to be prepared for.
Financial institutions have seen reports of increasingly sophisticated scams involving criminals who impersonate employees of Schwab and independent financial advisory firms. These individuals may claim to be fraud investigators, security specialists, financial consultants, or members of another internal team.
Their objective is to obtain sensitive information, gain access to financial accounts, capture authentication codes, or persuade clients to transfer money.
Our advice is straightforward: if someone contacts you unexpectedly about your financial accounts, don't try to decide whether the person sounds legitimate. End the conversation and independently verify the situation.
I’d place this checklist immediately after the introduction, before the section on how the scams work. That way, a client who has just received a suspicious call can find the steps they need without reading the entire article.
Emergency Checklist: What to Do If You Receive a Suspicious Call or Message
If someone contacts you unexpectedly claiming to be from Schwab or SCM and asks you to verify account activity, provide personal information, or move money, take these steps:
1. Stop the conversation. Hang up or stop responding to the message. Do not click any links, open attachments, or follow instructions to transfer money.
2. Do not share security information. Never provide your password, one-time passcode, authentication code, verbal password, or other sensitive account information to someone who contacted you unexpectedly.
3. Contact Schwab or SCM independently. Use the telephone number on your Schwab statement, sign in to Schwab Alliance through your usual method, or call SCM using our established office number. Do not use contact information supplied by the suspicious caller or message.
4. If you've already responded, report it immediately. Tell Schwab and SCM exactly what happened, including whether you shared information, provided a security code, granted access to your device, or transferred money. Don't wait to see whether an unauthorized transaction appears.
5. Secure any potentially compromised accounts. Follow Schwab's instructions for protecting your accounts. If you disclosed a password, change it using the legitimate website or app. If someone gained remote access to your device, disconnect it from the internet and seek help from a trusted technology professional.
6. Report the attempted fraud. Report suspicious activity to Schwab as soon as possible. You can also file a report with the Federal Trade Commission at ReportFraud.ftc.gov.
Remember: Schwab will never unexpectedly ask you to provide authentication codes, grant remote access to your device, or transfer money to a “safe” account. When in doubt, hang up and make the call yourself.
The Scam Often Starts With an Urgent Warning
One tactic involves a caller claiming that suspicious transactions have been detected in your account. The caller may ask you to verify the transactions through a link sent by text message or email.
That link could lead to a fraudulent website designed to capture your login credentials or other personal information.
In other cases, the caller may ask for a one-time authentication code, request remote access to your computer, or instruct you to transfer assets into a supposedly secure account.
The urgency is intentional. When someone tells you that your retirement savings are at risk, your natural reaction is to address the problem immediately. Scammers count on that response.
It's also important to understand that caller ID is not reliable evidence of someone's identity. Criminals can manipulate the name and telephone number displayed on your phone, making an incoming call appear to originate from a trusted financial institution.
A familiar phone number, professional demeanor, or knowledge of your personal information should never be enough to convince you to share sensitive account details.
What Schwab Will Never Ask You to Do
There are several requests that should immediately raise concerns.
Schwab will not ask you to confirm suspected fraud through an unsolicited link. It also will not unexpectedly contact you to request your online credentials, passwords, one-time passcodes, authentication codes, or remote access to your device.
And Schwab will not instruct you to move your money into a so-called safe account to protect it from fraud.
These are important distinctions because scammers frequently present themselves as the people trying to protect you.
Someone may claim that an unauthorized transfer is underway and that you must act within minutes. They may insist that sharing a code is the only way to stop the transaction. They may even tell you not to contact your financial advisor because doing so could delay the investigation.
We believe any unexpected request involving your account credentials, security codes, or movement of money should be treated as a reason to stop the conversation, regardless of how convincing the explanation sounds.
Our Recommendation: Hang Up and Make the Call Yourself
The simplest way to protect yourself is to take control of the communication.
If someone contacts you unexpectedly claiming to represent Schwab or SCM, end the conversation. Then contact Schwab or our office using a telephone number you already know is legitimate.
You can find Schwab's contact information on your account statement or by signing in to Schwab Alliance through your usual method. For SCM, use our established office contact information rather than a number provided in an unexpected message.
Do not call a number supplied in a suspicious text or email, and don't click a link simply because it appears to come from a familiar institution.
We would much rather have a client call us about a false alarm than respond to a convincing scam without checking first.
Protect Your Personal Information
It's worth being especially careful with information that could be used to access your accounts or impersonate you.
Never provide your Social Security number, date of birth, account numbers, username, password, verbal password, or authentication codes in response to an unsolicited communication.
Be equally cautious about requests to install software or grant someone remote access to your computer or mobile device.
A criminal who gains access to your email or device may be able to obtain information from multiple accounts, not just the institution they initially claimed to represent.
We also encourage clients to use strong, unique passwords and multifactor authentication wherever available. Account alerts can provide another useful layer of protection by notifying you when certain activities occur.
These precautions won't eliminate every threat, but they can make it more difficult for someone to gain unauthorized access.
Consider Whether You Need Full Online Account Access
One security measure worth considering is limiting online account permissions when full transactional access isn't necessary.
Schwab Alliance offers different access levels, including limited view access for individuals who need to see account information but don't need to perform transactions.
This may be useful when a family member wants to help monitor an account, when an individual needs account transparency without trading or money movement capabilities, or when additional safeguards would provide peace of mind.
Limiting permissions won't prevent someone from receiving a fraudulent phone call, but it can reduce the opportunities for unauthorized account activity if login information is compromised.
If Something Doesn't Seem Right, Contact Us
If you receive a suspicious call, text, or email involving your Schwab accounts, contact Schwab and SCM through established contact channels.
If you've already provided sensitive information, shared an authentication code, or followed instructions to transfer money, report the incident immediately. Quick action may help limit potential losses and allow the appropriate security teams to investigate.
You can also report suspected fraud to the Federal Trade Commission at ReportFraud.ftc.gov. Schwab provides additional information about protecting your accounts through SchwabSafe.
Don't hesitate to speak up because you're uncertain whether a communication was fraudulent. That's precisely when an independent verification is most valuable.
Protecting Your Wealth Is Part of Your Financial Plan
We spend a great deal of time helping clients make informed decisions about investments, retirement income, taxes, and estate planning. Protecting those assets from fraud deserves the same attention.
Our concern is that scams are becoming convincing enough that even careful, financially experienced people can be caught off guard. Trying to identify every fake website, manipulated phone number, or persuasive caller is not a dependable security strategy.
A better approach is to establish a rule and follow it consistently: never act on an unexpected request involving your financial accounts until you've independently verified it.
If someone claims there's an urgent problem with your Schwab account, you don't need to resolve it during that phone call. Hang up, contact Schwab or SCM using a trusted number, and find out what's actually happening.
If you have questions about account security or would like to review how your financial accounts are protected, schedule a complimentary 15-minute call.
A Weekly Perspective on Planning and Markets
Each week, we share The Week in Review — a short collection of articles on
financial planning and wealth management, along with a brief overview for context.
One email per week. No promotions, no sales – just clarity.
This material was written in collaboration with artificial intelligence (ChatGPT) and derived from sources believed to be correct.
Stordahl Capital Management, Inc is a Registered Investment Adviser. This commentary is solely for informational purposes and reflects the personal opinions, viewpoints, and analyses of Stordahl Capital Management, Inc. and should not be regarded as a description of advisory services or performance returns of any SCM Clients. The views reflected in the commentary are subject to change at any time without notice. Nothing in this piece constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Advisory services are only offered to clients or prospective clients where Stordahl Capital Management and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Stordahl Capital Management unless a client service agreement is in place. Stordahl Capital Management, Inc provides links for your convenience to websites produced by other providers or industry-related material. Accessing websites through links directs you away from our website. Stordahl Capital Management is not responsible for errors or omissions in the material on third-party websites and does not necessarily approve of or endorse the information provided. Users who gain access to third-party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from the use of those websites. Please note that trading instructions through email, fax, or voicemail will not be taken. Your identity and timely retrieval of instructions cannot be guaranteed. Stordahl Capital Management, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.