A $2 Million Scam By A Former Vanguard Supervisor Is Scaring Investors

Here’s how to protect yourself—and your elderly relatives too.

- Sergei Klebnikov

MOST PEOPLE DON’T ever expect to become victims of financial fraud. But as one recent case at investment giant Vanguard shows, it can sometimes happen even to customers of the biggest, most reputable organizations.

In March, a former Vanguard supervisor pleaded guilty to stealing more than $2 million from the accounts of deceased customers or those with inactive accounts before getting found out, according to the Philadelphia Inquirer. The perpetrator used his employees’ passwords to draw checks on these accounts between 2012 and 2014. Vanguard described it as an isolated incident and says it has since reimbursed victims.