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Fraud Policies At Fidelity, Vanguard & Schwab

Monday, January 31, 2011 - 8:23 PM
This CBS MoneyWatch Money for Life blog post reviews the potential of losing your retirement funds at the major brokerages due to identity theft and internet fraud. The post has some useful tips to ensure your funds stay safe.

It should be noted that there are fewer regulations to protect brokerage customers than bank customers.
5
Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,675
1. Tuesday, February 1, 2011 - 8:18 AM
The link in that article is just a site search "online fraud policy". Here's a direct link to some information at Fidelity:

 

Customer Protection Guarantee: We will reimburse your Fidelity account for any losses due to unauthorized activity.

Fidelity suggests ways to protect your personal information and online security.

There's a lot of small print, but those cover the things you'd expect (eg authorizing others to act on your behalf is excluded, debit cards are already covered under other laws, you must install antivirus, etc).

In my opinion, that is a more comprehensive policy than what most banks offer. Banks have explicit coverage on their debit cards, but general loss due to fraud doesn't seem to be as thoroughly explained.

Has anyone here actually been an identity theft victim that had money removed from their accounts at brokerages/banks (not through a debit/credit card)? How helpful was the institution in investigating/recovering the funds?
3
AtlantaWolfAtlantaWolf38 posts since
Jan 16, 2010
Rep Points: 170
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