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Automated Customer Account Transfer Service

From Wikipedia, the free encyclopedia

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.