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Not quite true. If you're talking physical cash, a person would have to get to the physical location to take it (as opposed to being available to everyone in t
by russelluresti 10y ago
Not quite true.
If you're talking physical cash, a person would have to get to the physical location to take it (as opposed to being available to everyone in the world with an internet connection).
If you're talking digital cash in a bank, most banks have a form of insurance that will cover your losses (for example, most US banks are FDIC insured and cover up to $250,000 USD in losses).
Stock assets may be the closest comparison, as brokerage firms aren't backed by an independent agency, and losses that occur from cyber-theft would only be reimbursed if the firm wanted to.
- jzwinck 10y agoStock trading accounts in the US are backed by the SIPC up to $500k (even for non-US persons). This protects you from an all-out insolvency of the institution, which would happen if somehow they had all their money stolen by hackers. But it does not protect you from hacking of your individual account. If someone tricks your broker/custodian into selling your stocks and wiring them the money, SIPC (perhaps surprisingly) will not save you. See: http://www.reuters.com/article/us-investing-hackedaccounts-idUSTRE8151UN20120206 http://www.reuters.com/article/us-investing-hackedaccounts-i...