Check what the entry actually represents

Start with the date, security, quantity, price, and transaction description. A statement entry may reflect a purchase or sale, but it might instead be a transfer, reinvestment, correction, or corporate action. Obtain the related confirmation or explanation before deciding what happened.

Compare the account number and reporting period carefully. A transaction date and a settlement date can differ. If the activity is still unexplained, record precisely what you do not recognize and when you discovered it. Keep the original statement and any alert or message associated with the transaction.

Locate the authority documents

Find the account agreement and any separate discretionary authority, trading authorization, or power-of-attorney form. A discretionary arrangement may permit decisions without asking for approval before every transaction, within its terms and applicable rules. That does not make all trading in the account automatically proper.

Identify limits you discussed or put in writing, along with changes or revocations of authority. Note who had authority and for which account. Do not assume an informal conversation, the phrase “managed account,” or permission for one trade establishes the scope of every later decision.

Preserve the instructions and response

Collect messages, call notes, order information, and the firm’s explanation. If your recollection differs from the records, describe the difference honestly. Label later notes as recollections rather than presenting them as notes made at the time.

  • What transaction is being questioned?
  • What approval or authority does the firm say supported it?
  • What restrictions or instructions were in effect?
  • When did you receive a confirmation or statement?
  • What did you say after discovering the issue?

The answers help an attorney identify evidence to request and distinguish an authorization issue from other potential concerns.

Raise discrepancies promptly through verified channels

Contact the appropriate firm personnel using independently verified details. Follow up a telephone discussion in writing and keep your own copy. If you suspect account compromise or missing assets, tell the firm’s security or fraud team promptly and ask about protective steps.

Do not share passwords or verification codes with someone who calls claiming to investigate the problem. A legal review and an account-security response may need to happen at the same time. Neither should depend on a stranger’s instructions to transfer funds to a supposedly safe account.

Ask about consequences before trying to undo the trade

Selling, reversing, or otherwise changing a position can involve market, tax, and legal consequences. Obtain advice suited to your situation rather than making a transaction only to demonstrate disagreement. A lawyer can discuss preservation of your position and the records needed to evaluate a claim.

Bring earlier and later activity to the review, including transactions you approved. Isolating one entry can hide important context. Ask about applicable deadlines and forums separately from the firm’s investigation, and do not assume a pending complaint means a private claim can wait indefinitely.

Your preparation checklist

  • The exact transaction and date discovered
  • Account agreement and authority documents
  • Instructions, restrictions, and relevant messages
  • The firm’s written explanation
  • Questions about timing and protective next steps

Background: Investor.gov materials on brokerage statements and excessive trading; FINRA investor education on unauthorized transactions. Authority and responsibility require fact-specific review.