Prevent Identity Theft With a Signature Guarantee

Identity theft is a major worldwide problem.  It usually involves financial transactions, such as credit cards, investing accounts, or banking.  The chances of becoming a victim of identity theft are greatly diminished by taking precautions, such as credit monitoring and using a signature guarantee.

Financial Institutions Require a Medallion Signature Guarantee for Certain Transfers

Many banks and brokerage houses require a medallion signature guarantee to transfer securities to external accounts. This is required by the originating institution to protect itself against potential fraud.  If the banks did not require a signature guarantee, then the originating bank would bear the liability of approving a fraudulent transfer if an unauthorized person requested a transfer of assets.

How Does a Signature Guarantee Protect Against Identity Theft?

A signature guarantee stamp is placed on a transfer document to indicate that the true account holder has authorized the transfer. The stamp can only be issued by an authorized agent. The account holder must present various forms of identification to receive the stamp.

Signature Guarantee is not Optional for Transfer of Assets

A medallion signature guarantee is required for many types of financial transactions and account services. A transfer of assets to an outside firm is the most common reason for receiving a signature guarantee. While a signature guarantee can be a tedious process, it is a major protection for both the account owner and the financial institution.