TD Ameritrade: Difference between revisions

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===Security breaches===

In November 2007, the company disclosed that hackers had breached its systems, gaining access to sensitive client information, including names, Social Security numbers, dates of birth, addresses, phone numbers, and trading activity.<ref>https://www.cnbc.com/2007/09/14/td-ameritrade-hacked-customer-info-stolen.html</ref><ref>https://www.cnet.com/culture/td-ameritrades-6-million-customers-hit-with-security-breach/</ref> Following a class-action lawsuit in 2011, the company agreed to a settlement, offering compensation ranging from $50 to $2,500 to customers who fell victim to identity theft as a result of the breach.<ref>https://www.law360.com/consumerprotection/articles/271214/td-ameritrade-settles-data-breach-suit-for-up-to-6-5m</ref> In 2020, customer login credentials were found being sold on the dark web.<ref>https://www.cnbc.com/2020/10/14/brokerage-log-ins-for-sale-on-dark-web-robinhood-sees-highest-prices-.html</ref>

In November 2007, the company disclosed that hackers had breached its systems, gaining access to sensitive client information, including names, Social Security numbers, dates of birth, addresses, phone numbers, and trading activity.<ref>{{Cite web |date=14 Sep 2007 |title=TD Ameritrade Hacked; Customer Info Stolen |url=https://www.cnbc.com/2007/09/14/td-ameritrade-hacked-customer-info-stolen.html |url-status=live |access-date=15 Mar 2025 |website=[[CNBC]]}}</ref><ref>{{Cite web |last=Kawamoto |first=Dawn |date=14 Sep 2007 |title=TD Ameritrade's 6 million customers hit with security breach |url=https://www.cnet.com/culture/td-ameritrades-6-million-customers-hit-with-security-breach/ |url-status=live |access-date=15 Mar 2025 |website=[[CNET]]}}</ref> Following a class-action lawsuit in 2011, the company agreed to a settlement, offering compensation ranging from $50 to $2,500 to customers who fell victim to identity theft as a result of the breach.<ref>{{Cite web |last=Bolado |first=Carolina |date=13 Sep 2011 |title=TD Ameritrade Settles Data Breach Suit For Up To $6.5M |url=https://www.law360.com/consumerprotection/articles/271214/td-ameritrade-settles-data-breach-suit-for-up-to-6-5m |url-status=live |access-date=15 Mar 2025 |website=[[Law360]]}}</ref> In 2020, customer login credentials were found being sold on the dark web.<ref>{{Cite web |last=Rooney |first=Kate |last2=Khorram |first2=Yasmin |date=14 Oct 2020 |title=Hackers look to buy brokerage log-ins on the dark web with Robinhood fetching highest prices |url=https://www.cnbc.com/2020/10/14/brokerage-log-ins-for-sale-on-dark-web-robinhood-sees-highest-prices-.html |url-status=live |access-date=15 Mar 2025 |website=[[CNBC]]}}</ref>

===Auction rates securities scandal===

In 2009, TD Ameritrade settled a lawsuit that accused the firm of misleading investors by selling them auction-rate securities it touted as safe, short-term investments. The investments, which had been considered safe before the 2008 financial crisis, later became illiquid, making investors' money irretrievable. The firm has agreed to pay $456 million and to buy back all the affected securities at their face value to compensate investors for losses.<ref>https://money.cnn.com/2009/07/20/news/companies/Schwab_TD_securities_investigation/index.htm</ref><ref>https://www.sec.gov/news/press/2009/2009-163.htm</ref><ref>https://www.nytimes.com/2009/07/21/business/21auction.html</ref>

In 2009, TD Ameritrade settled a lawsuit that accused the firm of misleading investors by selling them auction-rate securities it touted as safe, short-term investments. The investments, which had been considered safe before the 2008 financial crisis, later became illiquid, making investors' money irretrievable. The firm has agreed to pay $456 million and to buy back all the affected securities at their face value to compensate investors for losses.<ref>{{Cite web |last=Pepitone |first=Julianne |date=20 Jul 2009 |title=Ameritrade settles securities case for $456M |url=https://money.cnn.com/2009/07/20/news/companies/Schwab_TD_securities_investigation/index.htm |url-status=live |access-date=15 Mar 2025 |website=[[CNN]]}}</ref><ref>{{Cite web |date=20 Jul 2009 |title=SEC Charges TD Ameritrade for Auction Rate Securities Sales Practices |url=https://www.sec.gov/news/press/2009/2009-163.htm |url-status=live |access-date=15 Mar 2025 |website=[[SEC]]}}</ref><ref>{{Cite web |date=20 Jul 2009 |title=TD Ameritrade Agrees To Auction-Rate Buyback |url=https://www.nytimes.com/2009/07/21/business/21auction.html |url-status=live |access-date=15 Mar 2025 |website=[[The New York Times]]}}</ref>

===Losses in Reserve funds===

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These actions led to class-action lawsuits filed by customers and an investigation by the [[wikipedia:U.S._Securities_and_Exchange_Commission|U.S. Securities and Exchange Commission (SEC)]] into the company's marketing practices.

In 2008, TD Ameritrade agreed to reimburse customers for up to 3% of their losses in the Reserve Primary Fund, with a total cap of $50 million. In 2011, the company settled the SEC case and agreed to pay 1.2¢ per share of the Reserve Yield Plus Fund that was held by its customers, or $10 million in total. The Reserve Yield Plus Fund made its final distribution in 2016, with investors receiving 97 to 98 cents per share, in addition to the compensation provided by TD Ameritrade.<ref>https://www.chicagotribune.com/news/ct-xpm-2008-11-02-0810310465-story.html</ref><ref>https://www.baltimoresun.com/news/bs-xpm-2008-12-16-0812150177-story.html</ref><ref>https://www.sec.gov/news/press/2011/2011-36.htm</ref><ref>https://www.cbsnews.com/news/sec-announces-10m-settlement-with-td-ameritrade/</ref><ref>https://www.primary-yieldplus-inliquidation.com/lander</ref>

In 2008, TD Ameritrade agreed to reimburse customers for up to 3% of their losses in the Reserve Primary Fund, with a total cap of $50 million. In 2011, the company settled the SEC case and agreed to pay 1.2¢ per share of the Reserve Yield Plus Fund that was held by its customers, or $10 million in total. The Reserve Yield Plus Fund made its final distribution in 2016, with investors receiving 97 to 98 cents per share, in addition to the compensation provided by TD Ameritrade.<ref>https://www.chicagotribune.com/news/ct-xpm-2008-11-02-0810310465-story.html</ref><ref>https://www.baltimoresun.com/news/bs-xpm-2008-12-16-0812150177-story.html</ref><ref>{{Cite web |date=3 Feb 2011 |title=SEC Charges TD Ameritrade for Failing to Supervise Its Representatives Who Sold Shares of the Reserve Yield Plus Fund |url=https://www.sec.gov/news/press/2011/2011-36.htm |access-date=15 Mar 2025 |website=[[SEC]]}}</ref><ref>{{Cite web |date=3 Feb 2011 |title=SEC Announces $10M Settlement With TD Ameritrade |url=https://www.cbsnews.com/news/sec-announces-10m-settlement-with-td-ameritrade/ |url-status=live |access-date=15 Mar 2025 |website=[[CBS]]}}</ref><ref>https://www.primary-yieldplus-inliquidation.com/lander</ref>

==References==

@@ Line 7: / Line 7: @@
 ===Security breaches===
-In November 2007, the company disclosed that hackers had breached its systems, gaining access to sensitive client information, including names, Social Security numbers, dates of birth, addresses, phone numbers, and trading activity.<ref>https://www.cnbc.com/2007/09/14/td-ameritrade-hacked-customer-info-stolen.html</ref><ref>https://www.cnet.com/culture/td-ameritrades-6-million-customers-hit-with-security-breach/</ref> Following a class-action lawsuit in 2011, the company agreed to a settlement, offering compensation ranging from $50 to $2,500 to customers who fell victim to identity theft as a result of the breach.<ref>https://www.law360.com/consumerprotection/articles/271214/td-ameritrade-settles-data-breach-suit-for-up-to-6-5m</ref> In 2020, customer login credentials were found being sold on the dark web.<ref>https://www.cnbc.com/2020/10/14/brokerage-log-ins-for-sale-on-dark-web-robinhood-sees-highest-prices-.html</ref>
+In November 2007, the company disclosed that hackers had breached its systems, gaining access to sensitive client information, including names, Social Security numbers, dates of birth, addresses, phone numbers, and trading activity.<ref>{{Cite web |date=14 Sep 2007 |title=TD Ameritrade Hacked; Customer Info Stolen |url=https://www.cnbc.com/2007/09/14/td-ameritrade-hacked-customer-info-stolen.html |url-status=live |access-date=15 Mar 2025 |website=[[CNBC]]}}</ref><ref>{{Cite web |last=Kawamoto |first=Dawn |date=14 Sep 2007 |title=TD Ameritrade's 6 million customers hit with security breach |url=https://www.cnet.com/culture/td-ameritrades-6-million-customers-hit-with-security-breach/ |url-status=live |access-date=15 Mar 2025 |website=[[CNET]]}}</ref> Following a class-action lawsuit in 2011, the company agreed to a settlement, offering compensation ranging from $50 to $2,500 to customers who fell victim to identity theft as a result of the breach.<ref>{{Cite web |last=Bolado |first=Carolina |date=13 Sep 2011 |title=TD Ameritrade Settles Data Breach Suit For Up To $6.5M |url=https://www.law360.com/consumerprotection/articles/271214/td-ameritrade-settles-data-breach-suit-for-up-to-6-5m |url-status=live |access-date=15 Mar 2025 |website=[[Law360]]}}</ref> In 2020, customer login credentials were found being sold on the dark web.<ref>{{Cite web |last=Rooney |first=Kate |last2=Khorram |first2=Yasmin |date=14 Oct 2020 |title=Hackers look to buy brokerage log-ins on the dark web with Robinhood fetching highest prices |url=https://www.cnbc.com/2020/10/14/brokerage-log-ins-for-sale-on-dark-web-robinhood-sees-highest-prices-.html |url-status=live |access-date=15 Mar 2025 |website=[[CNBC]]}}</ref>
 ===Auction rates securities scandal===
-In 2009, TD Ameritrade settled a lawsuit that accused the firm of misleading investors by selling them auction-rate securities it touted as safe, short-term investments. The investments, which had been considered safe before the 2008 financial crisis, later became illiquid, making investors' money irretrievable. The firm has agreed to pay $456 million and to buy back all the affected securities at their face value to compensate investors for losses.<ref>https://money.cnn.com/2009/07/20/news/companies/Schwab_TD_securities_investigation/index.htm</ref><ref>https://www.sec.gov/news/press/2009/2009-163.htm</ref><ref>https://www.nytimes.com/2009/07/21/business/21auction.html</ref>
+In 2009, TD Ameritrade settled a lawsuit that accused the firm of misleading investors by selling them auction-rate securities it touted as safe, short-term investments. The investments, which had been considered safe before the 2008 financial crisis, later became illiquid, making investors' money irretrievable. The firm has agreed to pay $456 million and to buy back all the affected securities at their face value to compensate investors for losses.<ref>{{Cite web |last=Pepitone |first=Julianne |date=20 Jul 2009 |title=Ameritrade settles securities case for $456M |url=https://money.cnn.com/2009/07/20/news/companies/Schwab_TD_securities_investigation/index.htm |url-status=live |access-date=15 Mar 2025 |website=[[CNN]]}}</ref><ref>{{Cite web |date=20 Jul 2009 |title=SEC Charges TD Ameritrade for Auction Rate Securities Sales Practices |url=https://www.sec.gov/news/press/2009/2009-163.htm |url-status=live |access-date=15 Mar 2025 |website=[[SEC]]}}</ref><ref>{{Cite web |date=20 Jul 2009 |title=TD Ameritrade Agrees To Auction-Rate Buyback |url=https://www.nytimes.com/2009/07/21/business/21auction.html |url-status=live |access-date=15 Mar 2025 |website=[[The New York Times]]}}</ref>
 ===Losses in Reserve funds===
@@ Line 19: / Line 19: @@
 These actions led to class-action lawsuits filed by customers and an investigation by the [[wikipedia:U.S._Securities_and_Exchange_Commission|U.S. Securities and Exchange Commission (SEC)]] into the company's marketing practices.
-In 2008, TD Ameritrade agreed to reimburse customers for up to 3% of their losses in the Reserve Primary Fund, with a total cap of $50 million. In 2011, the company settled the SEC case and agreed to pay 1.2¢ per share of the Reserve Yield Plus Fund that was held by its customers, or $10 million in total. The Reserve Yield Plus Fund made its final distribution in 2016, with investors receiving 97 to 98 cents per share, in addition to the compensation provided by TD Ameritrade.<ref>https://www.chicagotribune.com/news/ct-xpm-2008-11-02-0810310465-story.html</ref><ref>https://www.baltimoresun.com/news/bs-xpm-2008-12-16-0812150177-story.html</ref><ref>https://www.sec.gov/news/press/2011/2011-36.htm</ref><ref>https://www.cbsnews.com/news/sec-announces-10m-settlement-with-td-ameritrade/</ref><ref>https://www.primary-yieldplus-inliquidation.com/lander</ref>
+In 2008, TD Ameritrade agreed to reimburse customers for up to 3% of their losses in the Reserve Primary Fund, with a total cap of $50 million. In 2011, the company settled the SEC case and agreed to pay 1.2¢ per share of the Reserve Yield Plus Fund that was held by its customers, or $10 million in total. The Reserve Yield Plus Fund made its final distribution in 2016, with investors receiving 97 to 98 cents per share, in addition to the compensation provided by TD Ameritrade.<ref>https://www.chicagotribune.com/news/ct-xpm-2008-11-02-0810310465-story.html</ref><ref>https://www.baltimoresun.com/news/bs-xpm-2008-12-16-0812150177-story.html</ref><ref>{{Cite web |date=3 Feb 2011 |title=SEC Charges TD Ameritrade for Failing to Supervise Its Representatives Who Sold Shares of the Reserve Yield Plus Fund |url=https://www.sec.gov/news/press/2011/2011-36.htm |access-date=15 Mar 2025 |website=[[SEC]]}}</ref><ref>{{Cite web |date=3 Feb 2011 |title=SEC Announces $10M Settlement With TD Ameritrade |url=https://www.cbsnews.com/news/sec-announces-10m-settlement-with-td-ameritrade/ |url-status=live |access-date=15 Mar 2025 |website=[[CBS]]}}</ref><ref>https://www.primary-yieldplus-inliquidation.com/lander</ref>
 ==References==