Has Charles Schwab Data/Security Been Breached?

Charles Schwab data breach with customer SSN and personal information stolen. Has Schwab been hacked and cyber security breached?

Has Charles Schwab Been Hacked?

Key Discoveries:

In 2023, Charles Schwab experienced a data breach that affected roughly 61,000 customers.
Since then, Schwab has not been hacked.
Schwab today devotes extensive company resources to cybersecurity.

If you have concerns about the technical safety of Charles Schwab, you’ve come to the right place. Here are the details:

2023 Data Breach

In May of 2023, Charles Schwab was transferring accounts in from TD Ameritrade, a broker that Schwab had recently purchased. Schwab was using MOVEit software, a third-party application. This software was hacked, and the data on approximately 61,000 clients was exposed.

The accounts affected were actually TD Ameritrade accounts (and not Schwab accounts). Details that were stolen include dates of birth, Social Security Numbers, and government ID numbers, such as driving licenses. It was one of the largest cyber attacks of 2023.

Schwab’s Response

When Schwab discovered that its file-transfer system had been breached, it immediately stopped using the software. It also contacted law enforcement and conducted a full internal investigation. In August of 2023, Schwab notified TD Ameritrade customers of the incident.

After Schwab’s swift response to the incident and late notification to affected clients, some TD Ameritrade customers were quite unhappy. They filed a class-action lawsuit against Schwab, the parent company of TD Ameritrade, alleging negligence in its fiduciary duty to protect client’s sensitive information.

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Ways You Can Respond

If you were affected by this data breach, there are some steps you can take right now. They are:

Change your password. Log into your Schwab account and change your password.
Establish two-factor authentication (2FA). On Schwab’s website, you can set up 2-step verification, which requires an additional security step to get into an account.

Recent Data Thefts at Schwab

Schwab has not experienced any data breaches since the 2023 incident. Because Schwab is a multi-billion-dollar corporation with trillions of dollars in client assets, there should be no doubt that attempts have been made. The fact that no cyber breaches have occurred is probably due to Schwab’s implementation of many safeguards since 2023. We will look at those protections now.

Schwab Security Guarantee

Schwab’s Commitment to Cybersecurity

Schwab has dedicated many company resources to protecting its customers’ accounts from cyber attacks. Its software incorporates encryption and risk-based security features. It trains its employees in the handling of sensitive information, and its software constantly monitors Schwab servers for any breaches. It publishes information to help people stay aware of cybercrime and avoid it; is one such publication.

Schwab also has a Security Guarantee. Under this policy, Schwab promises to cover any losses in its customers’ accounts due to unauthorized activity. This guarantee automatically comes with every account (except for annuities, 529 plans, and certain trust accounts), so clients do not need to activate it. Nevertheless, Schwab does encourage all clients to safeguard their login information and report any suspicious activity by calling 1-888-3-SCHWAB.

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Updated on 6/3/2025.

About the Author

Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.