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Safeguard your identity, account security

Your identity can be stolen anonymously, making email-related schemes appealing to criminals. Malware—malicious programs—are used to take control of email accounts and monitor them to see the banks or financial advisors you do business with. The thief can pretend to be you and request a wire transfer that appears to be legitimate.

Preventing malware. Here are some ways to keep malware from invading your computer:

• activate your computer’s firewall and make sure you regularly update its operating system
• install anti-virus and anti-spyware software and set up automatic updates
• download and install software only from web sites you know and trust
• make sure your browser’s security setting is high enough to detect and stop unauthorized downloads
• don’t send personal information, like your social security number, via email
• don’t open attachments or click links from unknown sources
• don’t use easy-to-guess passwords (like ABC123)
• don’t buy software in response to unexpected pop-up messages or emails, especially ads that claim to have scanned your computer and detected malware

Recognizing malware. Monitor your computer; it may be infected with malware if it:

• slows down, crashes, or displays repeated error messages or drains a laptop battery more quickly than normal
• won’t shut down or restart
• shows a series of pop-up windows or suddenly and repeatedly changes your internet home page
• displays web pages you didn’t intend to visit, or sends emails you didn’t write
• shows new and unexpected toolbars, icons or shortcuts

To learn about Charles Schwab & Co.’s efforts to help you safeguard your information, go to SchwabAlliance.com.


Schwab changes Form 1099-Composite

Schwab’s new Form 1099-Composite now includes both cost basis and realized gain/loss information you need to make your tax preparation easier. It consolidates Schwab’s Year-End Summary, Form 1099-B, and other 1099 forms. That means you’ll no longer receive Schwab’s separate year-end Gain/Loss Report unless you’ve subscribed to it for your nontaxable accounts. Form 1099-B has also been modified and includes several new items, including:


investment purchase dates and holding periods

adjusted cost basis

disallowed losses from sales that don’t meet IRS laws

identification of your investments covered by new tax reporting requirements


Note that Schwab will send you gain/loss information for any investments acquired in 2011 in a taxable account. However, its requirement to send your mutual fund gain/loss information to the IRS begins with the 2012 tax year.


Please contact Schwab Alliance at 800-515-2157 (weekdays between 8:30 a.m. and 7 p.m. Eastern) or go to SchwabAlliance.com for more information about its new Form 1099 Composite or signing up for eDelivery.


Please consult your accountant or the IRS with questions on how the changes will impact you as you complete your 2011 tax return.