Charles Schwab Faces Lawsuit Over Failure to Prevent Elder Fraud in Computer Hack

Posted on October 9th, 2024 at 1:26 PM
Charles Schwab Faces Lawsuit Over Failure to Prevent Elder Fraud in Computer Hack

From the desk of Jim Eccleston at Eccleston Law

A new lawsuit claims that Charles Schwab failed to protect an elderly client from a fraudulent scheme that drained her retirement savings.

As reported by Financial Planning, the suit asserts that scammers posing as government agents persuaded the 92-year-old  to transfer funds to them, ostensibly to protect her from fraud. Despite repeated warnings from the clients, Schwab allegedly refused to implement a permanent account lock, instead temporarily freezing and unfreezing the account five separate times.

The scam began with unusual "clicking" sounds on her computer, which led her to believe she was hacked. Scammers, posing as government agents, then convinced her to grant them remote access to her computer and instructed her to execute multiple transactions. The lawsuit states that Schwab allowed these transfers to proceed, including several to known scam-related companies, without adequately investigating. 

FinancialPlanning reports that while Schwab eventually gave the daughter "limited trading authority" on her mother’s account, the suit claims this measure was ineffective in preventing further fraud.

The case highlights the growing issue of elder fraud, which cost individuals 60 and older an estimated $3.4 billion in 2023, according to the FBI.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

December 11, 2025
DOJ Secures Five-Year Prison Sentence in Wolf Capital Crypto Fraud Case

Federal prosecutors have obtained a five-year prison sentence for Travis Ford, an Oklahoma resident who admitted to orchestrating a fraudulent crypto investment scheme through Wolf Capital.

December 10, 2025
SEC Highlights Rising Risks in RIA Consolidation and Focuses on Retailer Investor Protection

The Securities and Exchange Commission signaled heightened scrutiny of investment advisers involved in mergers and acquisitions, according to its newly released 2026 Examination Priorities.

December 9, 2025
The Vanishing Boundary Between Investing and Gambling

According to Bloomberg Law, there now are the tools, tactics, and a psychology of gambling that increasingly resembles those of retail trading.