U.S. Senators Ron Wyden and Elizabeth Warren called on the Financial Industry Regulatory Authority to strengthen protections against fraud involving the Automated Customer Account Transfer Service. They urged FINRA to require brokerages to notify account holders of transfer requests and protect accounts with phishing-resistant multifactor authentication, such as passkeys. Brokerages currently have one business day to validate or object to a transfer request and three business days to complete it, while customer notification is recommended but not required. An analysis by the senators’ offices found inconsistent safeguards across firms, with some offering transfer locks and others providing no way for customers to block outgoing transfers. Following outreach from the senators, Webull, Robinhood and Interactive Brokers agreed to develop self-service transfer locks.
2026-08-20U.S. Senate Committee on Finance
U.S. Senate Committee on Finance senators urge FINRA to tighten ACATS transfer and account security requirements
U.S. Senators Ron Wyden and Elizabeth Warren urged FINRA to require customer notifications for brokerage transfer requests and phishing-resistant multifactor authentication. Their analysis found inconsistent safeguards against fraudulent Automated Customer Account Transfer Service transactions, although several brokerages have agreed to develop self-service transfer locks.