Fraud & Identity Theft Prevention

Policy Objectives

The purpose of the LPL Financial Anti-Fraud Policy is to set forth the foundation for LPL’s Anti-Fraud Program, which includes the prevention, detection and prompt reporting of actual, suspected, and attempted fraudulent activities, which are critical to ensuring that fraud events are properly investigated and resolved. This includes identification of ID theft red flags relevant to our firm; detection of ID theft red flags; appropriate response to ID theft red flags that are detected; and periodic reviews and updates to the firm’s Anti-Fraud Policy to reflect changes in risks.

LPL Financial has implemented policies & procedures (including the Anti-Fraud Policy) designed to prevent access to accounts and personally identifiable information (PII) of our customers and provide us with the ability to identify red flags in order to appropriately address fraud and identity theft attempts when they occur.

Responsibilities

LPL Financial takes its regulatory responsibilities seriously and all reports of fraud and identity theft are investigated and acted upon including the involvement of law enforcement agencies when needed.

The Fraud Governance Committee assigns specific responsibility for implementation of the Anti-Fraud Policy, approving material changes.  All personnel are required to receive regular training on fraud & identity theft prevention.  This training includes but is not limited to the new hire training process.

Business units are responsible for maintaining procedures to identify red flags and monitor accounts flagged as potentially linked to instances of identity theft.  Department management is responsible for performing regular fraud risk assessments and updating related procedures, as necessary.

Possible Red Flags of Identity Theft & Fraud

• Requests to change physical address, telephone number or e-mail address that do not make sense (e.g. to unknown third-party)
• Opening an account in a customer’s name but with the address of a third party
• Unauthorized change of address request submitted through USPS
• A claim that the customer did not receive his or her statement, coupled with requests for account/transaction information
• Customer fails non-documentary CIP verification process
• Unusual caller or email creating a sense of urgency, or only wants to communicate via email and is unresponsive to advisor’s phone calls
• Unusual account activity requests for funds or investments, deviating from regular investment scheduling or objectives
• Changes to customer behavior, as a result of potential exploitation or manipulation by a third-party
• Customer signature on distribution form does not match the new account form

Reporting Procedure

If you feel you may be a victim of fraud or identity theft, please contact your financial professional or Investor Support: (800) 558-7567.