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Automated Customer Account Transfer Service

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Automated Customer Account Transfer Service (ACATS) is an almost entirely electronic system in the United States that executes the transfer of financial securities from a trading account at one institution to the trading account at another. ACATS was developed by the National Securities Clearing Corporation (NSCC), now a subsidiary of Depository Trust & Clearing Corporation (DTCC), a private holding company owned collectively by banks and financial institutions that handles the settlement of the vast majority of securities transactions in the United States.[1]

In 2023, the Financial Industry Regulatory Authority (FINRA) issued new rules regarding ACATS because of concerns about an increase in ACATS fraud. In this type of fraud, the attacker steals a victim's identity, opens a new brokerage account in the victim's name, and issues an ACATS request to transfer securities from the victim's true brokerage account to the new one.[2]

References

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  1. ^ Joseph Nordqvist What is The Automated Customer Account Transfer Service Market Business News, Retrieved on September 10, 2014.
  2. ^ "FINRA Issues New Guidance on ACATS Fraud". lgwmlaw.com. 2023-05-01. Retrieved 2024-01-03.