Pennies at a Time

You know a news story is good when it conjures up not just one but two great memories (Superman III and Office Space).

A California man has been indicted for an inventive scheme that allegedly siphoned $50,000 from online brokerage houses E-trade and in six months — a few pennies at a time.

Michael Largent, of Plumas Lake, California, allegedly exploited a loophole in a common procedure both companies follow when a customer links his brokerage account to a bank account for the first time. To verify that the account number and routing information is correct, the brokerages automatically send small "micro-deposits" of between two cents to one dollar to the account, and ask the customer to verify that they’ve received it.

By the way, this is called salami slicing.

  1 comment for “Pennies at a Time

  1. May 29, 2008 at 9:56 am

    Isn’t this what banks do on many of their transactions? 🙂

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