Daniel Oh, group legal counsel at Connective Broker Services, said that while headline figures may appear alarming, the underlying data suggests that fraud directly linked to the broker channel remains low and stable.
Fraud levels remain low despite scrutiny
According to Oh, Connective conducts around 300 investigations each year across its network of approximately 5,000 brokers for a number of reasons, fraud and misconduct being one of them.
When isolated to serious misconduct, Oh said that confirmed fraud accounted for around 0.1 per cent of brokers, with around 0.4 per cent linked to higher-level misconduct.
“When I take a step back on this and ask how many brokers does Connective actually terminate each year for either fraud, or highly suspected misconduct, it’s less than a handful,” Oh said.
“It’s less than five for out and out fraud, and then maybe another 10–15 on some level…
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THE TD BANK INSIDER “BRIBE-FOR-DATA” SCHEME (USA)
Date: February 17, 2026 Perpetrator: Edward Low (Former Bank Employee)
Case Description: In a high-profile case of “Insider Threat,” Edward Low, a former employee of TD Bank in New York, pleaded guilty in a New Jersey federal court to accepting bribes in exchange for confidential customer data. Between 2021 and 2022, Low leveraged his internal access to harvest the personal details of high-balance account holders. He then sold this “hot data” to external fraud syndicates for as little as $26,700 in personal kickbacks.
The external fraudsters used the information Low provided to conduct “Account Takeovers” (ATO), creating fraudulent checks and falsifying bank records to drain over $500,000 from unsuspecting customers. Low even went as far as helping co-conspirators open shell company accounts at a second financial institution where he was later employed. He now faces a maximum penalty of 30 years in prison. This case has sent shockwaves through the global banking sector, highlighting that even the most robust external firewalls cannot protect against a “rogue insider” with administrative credentials.
Link to Original: US Dept of Justice – TD Bank Insider Plea