Shepherd Smith Edwards and Kantas Is Representing This Claimant

A nonagenarian investor represented by Shepherd Smith Edwards and Kantas has filed a FINRA arbitration claim seeking up to $5 million from Charles Schwab after hackers stole her seven-figure retirement savings. Despite the firm’s written security guarantee, Schwab has refused to compensate her, blaming her for falling for the scam and prompting the lawsuit alleging negligence and breach of fiduciary duty.

A nonagenarian widow has filed a FINRA arbitration claim against Charles Schwab & Co. after her account at the brokerage firm was infiltrated by hackers. She is seeking up to $5M in damages now that the theft has left her almost penniless. Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing this elderly investor.

Our Client lives in Florida. In 2025, hackers were able to steal her retirement money. It doesn’t appear that anyone at the brokerage firm questioned the transactions when they happened. The hacker, who contacted this elderly investor and pretended to be with the Federal Bureau of Investigation (FBI), told her that her Schwab account had already been infiltrated by scammers. They advised that she set up new bank accounts to keep her money safe and not to access her Schwab account.

Over a period of months, this investor’s savings was stolen. She was left with under $300 in an account that once held seven figures. It wasn’t until actual authorities contacted her that she found out her money was gone.

Schwab Refuses To Make Elderly Customer Financially Whole Despite “Security Guarantee”

Charles Schwab, despite providing a written “Security Guarantee” that it would keep customer assets safe and repay any losses involving unauthorized transactions in a Schwab account, blamed this investor. They said she was at fault for falling for the scam. The brokerage firm refuses to compensate her.

Now, our brokerage account hack recovery lawyers have filed a FINRA lawsuit against Schwab for this investor. She is accusing the broker-dealer of breach of contract, aiding and abetting fraud, conversion and aiding and abetting conversion, breach of fiduciary duty, negligence, gross negligence, failure to supervise, and more.

What Responsibility Do Brokerage Firms Have When An Investor’s Account Is Hacked?

The FBI reports that since 2025, there has been over $262M in losses and more than 5,100 complaints involving account takeover fraud. This includes the hacking of brokerage accounts.

Broker-dealers may try to get out of being held liable, perhaps even blaming you, if this happens. However, you may be able to hold them liable if the firm:

• Did not implement the proper security and safety measures to prevent scammers from hacking your account.
• Failed to properly supervise your brokerage account and detect red flags indicating suspect activity.
• Breached their contract by not providing the measures required that could have prevented brokerage account takeover.
• When they noticed fraudulent activity in your account, they didn’t act to stop it or notify you that anything was amiss.

How Do I Sue My Brokerage Firm For An Outside Hack Involving My Account?

It is important that you hire skilled brokerage account takeover attorneys that know how to build a solid case on your behalf for why you should hold the broker-dealer liable. Trust us when we tell you it is highly likely that the brokerage firm will very quickly “lawyer up” and shift any accountability away from themselves.

Shepherd Smith Edwards and Kantas represents investors whose broker-dealer failed to act so as to prevent these claimants from having their money stolen from right under the firm’s watch. If we do find that you have grounds for a brokerage account takeover case, and we decide to work together, we will build a solid FINRA arbitration claim and fight to maximize your chances for a full financial recovery.

Talk To Us About Your Brokerage Account Hack Losses

Call (800) 259-9010 or contact us online.