Safe and Sound

Security, or a lack thereof, has been a hot topic in the news lately, ranging from high-tech hacking scandals to sensitive information leaks. During a time of such concern, we can all agree that security is a top priority in our lives and cannot be overlooked or taken for granted. Whether it is national security, personal security or investment security, one thing is for sure – security is essential in our lives.

The trusted preferred custodian of DWM, Charles Schwab, has always found new ways to implement innovative security functions to protect both the advisor and the client. In addition to a focus on low-cost trading, Schwab has also always focused on investment security and client interests.

Charles Schwab takes multiple steps to ensure the security of client and advisor accounts, and to guard against any potential unauthorized access. Let’s examine some of these key security measures in depth.

Login Authentication and Encryption

SchwabSafe is collection of security measures that ensures the security of your information and accounts. Schwab.com uses advanced encryption technology, such as 128-bit Secure Sockets Layer encryption, to guarantee private communication and secure authentication on all accounts. The website also uses the highest level of Extended Validation certificate. This means that when you’re logging into the website, you will see a green web address bar that indicates all of your information is being protected by SchwabSafe.

Security Tokens

Charles Schwab also offers a free token, available in the form of a key fob or as a phone application, that makes each login as secure as possible. A token creates a six-digit number that serves as an additional numeric password each time you log in to your account. This token provides peace of mind and as a great security measure for clients and advisors. You can order a free or set up your phone application token from Schwab by calling 800-435-4000.

Monitoring Unauthorized or Suspicious Activity

Another great security feature is that Schwab monitors suspicious account activity 24/7. Schwab utilizes pattern analysis and advanced monitoring systems to constantly scan for suspicious or potentially unauthorized activity on your account. SchwabSafe fraud teams are specifically dedicated to ensuring that your account activity is authorized and they will call us and/or you if they detect any unusual behavior, or want to confirm third party checks and other distributions.

Security Tips

If you’re still worried about the security of your financial accounts, there are a few helpful tips you can utilize to put your mind at ease. Make sure that your contact information on your account is current and accurate, so you can be immediately updated in case of suspicious activity. Be wary of using public computers when logging into sensitive accounts. Always make sure to log out of your account when you are finished and do not use computers you don’t trust. As mentioned earlier, using a token when logging in each time is also a very effective way to ensure the security of your personal information.

Make sure your password is unique and has not been used for any of your other accounts. You should always try to change your password every six months. Admittedly, it can be difficult to keep track of multiple different passwords so it may be a good idea to have a system for keeping track of these. However, a sheet of paper does not qualify as a safe and effective system! If you are tech savvy, there are a multitude of phone applications that can maintain your passwords.

In addition to many added security features, accounts held at Charles Schwab are insured by the Securities Investor Protection Corporation (SIPC) in the event of a broker-dealer failure. The SIPC provides up to $500,000 and up to $250,000 for uninvested cash equivalents of protection for each separate account held at Charles Schwab. Furthermore, excess SIPC in an aggregate amount of $600 million in protection is provided for Schwab customers through underwriters at Lloyd’s of London and London insurers.

Here at DWM, we take our clients’ security very seriously. For compliance reasons we are not allowed to hold anyone’s login password for any reason. We operate through cloud based technology to streamline our process and provide increased security. For any questions or concerns regarding security, please feel free to contact us at DWM anytime.