Has Charles Schwab Data Security Been Breached?

Has Charles Schwab Been Hacked?

Key Discoveries:

In 2023, a MOVEit Transfer data breach affected more than 61,000 TD Ameritrade clients.
The incident involved a third-party file-transfer program used by TD Ameritrade, not Schwab’s main internal systems.
Schwab now commits major company resources to cybersecurity.

If you are worried about the technical safety of Charles Schwab, this review explains the main details:

2023 Data Breach

In May 2023, TD Ameritrade, which Schwab had acquired, was using MOVEit Transfer, a third-party file-transfer program. Hackers took advantage of a weakness in that software, and information belonging to more than 61,000 TD Ameritrade clients was exposed.

The affected accounts were TD Ameritrade accounts, not regular Schwab brokerage accounts. Information that may have been exposed included names, Social Security numbers, financial account information, dates of birth, government identification numbers, and other personal identifiers. The TD Ameritrade incident was part of the larger MOVEit cyberattack campaign, one of the biggest data-breach events of 2023.

Schwab’s Response

After TD Ameritrade learned about the MOVEit security incident, it stopped using the software, contacted law enforcement, and opened an investigation. Schwab said the incident did not affect Schwab’s or TD Ameritrade’s internal systems, but personal information for certain TD Ameritrade customers was stored on the affected MOVEit server. In August 2023, affected TD Ameritrade customers began receiving notice of the incident.

After Schwab responded to the incident and later notified affected clients, some TD Ameritrade customers were dissatisfied. They filed class-action lawsuits against TD Ameritrade and related Schwab entities, alleging negligence and failure to protect clients’ sensitive information.

Safe Charles Schwab Account

Ways You Can Respond

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

Change your password. Log into your Schwab account and update your password.
Set up two-factor authentication (2FA). On Schwab’s website, you can enable 2-step verification, which adds another security step before account access is granted.
Watch your financial accounts and credit reports, and consider adding a fraud alert or security freeze with the major credit bureaus if your Social Security number or government ID number was exposed.

Recent Data Thefts at Schwab

I found no confirmed public report of another Schwab or TD Ameritrade customer data breach after the 2023 MOVEit incident. Because Schwab is a large company with trillions of dollars in client assets, it is reasonable to assume that cybercriminals continue to target it. The fact that no later public breach report was found may be partly due to Schwab’s ongoing security controls. We will review those protections next.

Schwab Security Guarantee

Schwab’s Commitment to Cybersecurity

Schwab has dedicated many company resources to protecting customer accounts from cyberattacks. Its software uses encryption, multi-layered login protections, extended validation certificates, pattern analysis, and other systems designed to detect suspicious account activity and block unauthorized access. Schwab’s fraud teams also monitor activity for suspicious behavior, and Schwab sends alerts when sensitive account activity occurs. It publishes information to help people understand cybercrime and avoid it; is one such resource.

Schwab also offers a Security Guarantee. Under this policy, Schwab says it will cover losses in Schwab accounts caused by unauthorized activity. This guarantee is automatically included with covered accounts, so clients do not need to activate it. However, Schwab requires clients to protect their account-access information and report unauthorized activity quickly. The guarantee does not apply to annuities, 529 college savings plan accounts, or personal trusts for which Charles Schwab Trust Company or Charles Schwab Trust Company of Delaware acts as trustee. Schwab encourages all clients to report suspicious activity by calling 1-888-3-SCHWAB.

Secure Charles Schwab Account

Visit Schwab Website

Updated on 8/22/2026.

About the Author

Chad Morris has been analyzing investment firms for Brokerage-Review.com since 2015. Backed by FINRA Series 65, 66, and SIE credentials, his work reflects a deep knowledge of the retail brokerage industry and digital trading tools.