I recently received a couple of 'notification' emails from Schwab re. the approval/completion of various changes I supposedly requested to an old 'inactive' (past employer) 401k account, including:
- the addition of a bank account linked to my Schwab 401k;
- the successful transfer of 10% of my 401k to the linked bank account;
- and the required IRS 'penalty' forms resulting from my 401k early withdrawl.
Having significant Network/IT related experience, my first reaction was to 'trace/track' any info I could find to help ID the thief, however, I noticed that the transferred funds had just cleared that same day (literally, ~6 hours earlier) AND the added/linked unknown bank account was still active; so, I immediately set up a reverse transfer back to my 401k (~10% +$50 to cover any potential fees I might need to cover as a result). I contacted Schwab next, and explained what I had done. They all seemed to get a kick out of my reverse transfer, but also informed me that my funds would be returned regardless and they would handle reverting my account to its original status with additional security protocols. In the end, my reverse transfer went through and the unknown bank account was deleted. About a week later Schwab subtracted the extra $50 reverse transfer portion. I contacted them to find out why (-$50), and what the status was with my ID/Bank Fraud (victim) case. I was shocked to find that their position/policy in such security breach / fraud cases was; "these ID Theft rings are highly sophisticated and nearly impossible to catch....it very well may have been an 'inside' job scenario, and there really is not anything more Schwab can do unless the police get involved...which typically is a dead end anyway...".
So...my general question(s):
- Is there any truth to Schwabs' responses or are they just trying to avoid any bad publicity?
- It's been over 3 months now and I am still feeling an excessive insecurity regarding all my internet financial accounts, and a continuous suspicion that it may have been a 'personal attack'. Any advice or suggestions on dealing with this situation or my options (legal or otherwise) should I choose to pursue this matter would be gratefully appreciated.
- And, where did the extra $50 go? Why does Schwab get to profit from my loss (do I still have to pay the penalty for early withdrawl or do I need some documentation from Schwab?).