First investment services firm to launch a Security Guarantee nearly 10 years ago, Schwab expands consumer education and other security resources
Public Company Information:
SAN FRANCISCO--(BUSINESS WIRE)--Today, Schwab announced the launch of SchwabSafe™, an online resource with perspectives and tips on cyber security for clients. The first investment services firm to provide a Security Guarantee that covers 100% of any losses in any Schwab accounts due to unauthorized activity (launched nearly 10 years ago), Schwab continues to expand its resources for online security and fraud prevention to include educational programs such as SchwabSafe, client seminars and live consultations, and its numerous behind-the-scenes methods of authenticating clients to safeguard client accounts against unauthorized activity and fraud.
“It has always been our practice to make clients whole in cases of unauthorized account activity. The security guarantee turned that historic practice into a public promise 10-years ago,” said Jim McGuire, chief information officer at Schwab. “While a guarantee provides a safety net, everyone has a role to play in security protection. We provide multiple behind-the-scenes methods of authenticating clients and we encourage our clients to learn as much as they can about safe online security practices – not just for their interaction with us, but in all aspects of online commerce,” McGuire said.
The terms of the Schwab Security Guarantee are available here.
The company also announced today it will enhance its password protocols beginning in August 2015, to include the following parameters:
- Can be a minimum of 6 and a maximum of 234 characters
- Must include at least one number
- Must include at least one letter
- Will be case-sensitive
- Will be able to include commonly used symbols
- Will be able to include internal spaces
“While password complexity is only one part of information security, we knew that many of our clients wanted greater flexibility in choosing passwords across our electronic channels so we’re pleased to be launching that initiative this August as well. Technology and security are always evolving, these changes are part of an ongoing process of enhancements to Schwab’s existing client authentication and fraud detection capabilities which will continue over time,” McGuire said.
Schwab clients will not be required to change their existing passwords, but will now have the ability to choose a longer and/or more complex password if they wish to do so. While clients do not have to take advantage of the new password enhancements, Schwab does encourage periodically changing passwords as a routine best practice for account security. Other recommended best practices involving passwords include the following:
- Don’t use personal information such as your birthday as part of your login ID.
- Create a unique password for each financial institution you do business with and change it every six months. Don’t share your passwords.
- Consider adding a verbal password to your Schwab account for an extra layer of security when you call us.
- For maximum peace of mind, consider getting a free security token, which can make every login even more secure. Tokens are available by calling 800-435-4000.
For more information on account security at Schwab, visit SchwabSafe.
About Charles Schwab
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
Through its operating subsidiaries, The Charles Schwab Corporation (NYSE: SCHW) provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.schwab.com and www.aboutschwab.com.
Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value.