The Depository Trust Company, or DTC, is part of the real U.S. financial system. Banks and brokers use it to transfer ownership of stocks and bonds. Think of it as a digital vault that records who owns what. It doesn’t hold cash and it doesn’t deal with the public. This is important!
What DTC Really Does
When someone buys or sells a stock, DTC updates the record so the buyer’s broker gets the shares and the seller’s broker gets paid. It’s instant and all electronic. No paper, no delay, no secret transfers.
How Scammers Twist It
Scammers love to drop “DTC” into fake deals to sound official. They’ll say things like “funds are being sent through DTC” or “off-ledger DTC accounts.” None of that is real. DTC doesn’t move money, it doesn’t have personal accounts, and there’s no such thing as “off-ledger” anything.
If you see things like this:
- “Funds are being sent via DTC”
- “We have off-ledger DTC accounts with billions”
- “The DTC transfer just needs a compliance fee”
Walk away! You are being targeted.
The Social Engineering Angle
I’ve reviewed hundreds of fake DTC documents. They all use the same tricks - fake authority, fake urgency, and fake numbers. Some even copy real logos or add huge sums like “€6 trillion.” Others ask for small “compliance fees” or copies of your ID. It’s all bait to make you drop your guard.
A document included in a DTC scam I investigated shows a “Barclays” proof of funds which was completely fraudulent. You’ll notice the use of logos but the giveaway is odd language choices. This will become a bit more difficult to spot with the use of AI.
Scammers count on confusion. They want you to think you’re looking at something too complex to question. Once you understand how simple DTC really is, the scam falls apart.
What To Watch For
If you see a document that mentions DTC:
- Check for generic emails like Gmail or ProtonMail
- Look for typos, vague wording, or missing contact info
- Be suspicious of any fee request or pressure to act fast
- Ask for a DTC participant number - they’ll never have one
Bottom Line
DTC is real. The scams built around it aren’t. If someone says your money is moving “through DTC,” they’re lying.
If you’ve received a DTC document or message that feels off, send it to me. I investigate these scams and can tell you right away if it’s fake. Stay safe out there! The proof of claim is always on the people presenting these documents. Challenge them!