What exactly stops either a discount brokerage firm, or a hacker

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>discount brokerage firm

>>1576824
FDIC insures your account breh

>>1576937
whhat about from hackers?

Is it still insured

>>1576939
Yes it is still insured are you fucking ten or retarded or both?

>>1577006
No I'm not 10 I'm just curious because I'm interested about how it would pan out.

I understand that the government ensures any theft from your bank account is covered by Regulation E but for brokers I'd imagine it's different?

>Hacker hacks into your broker account
>Sells all your securities/transfer it out

Would the brokerage then just refund the money it would have been worth when it sold? what if they sell it at an unprofitable time (for example there's a significant dip?) Do they just refund you $600,000 or whatever the heck you lost and the FDIC says they need to cover?

FDIC does NOT insure brokerage accounts.

>>1577055
>FDIC does NOT insure brokerage accounts.

gg then

So some lil faggot can just steal your life savings?

>>1577055
it's covered by SIPC

>>1577055
Nvm. Seems most brokerages cover the loss if it occurs

>>1577021

If someone "hacks" your bank accounts, then you report it to the bank and file a police report. The bank will then have you come in and sign a notarized affidavit that you had nothing to do with the "hack" and you agree to testify in court if necessary.

A bank will almost always replace the money after you've signed an affidavit, because any kind of "hacking" is bad pr for them and your account is pennies in their world.

A brokerage will most likely do the same thing depending on how it happened.

>>1577066
>A bank will almost always replace the money after you've signed an affidavit, because any kind of "hacking" is bad pr for them and your account is pennies in their world.

True.

I've just been reading about all sorts of different malware and how common this kind of bank fraud is and how easy it is and it's kind of scaring me...

>A brokerage will most likely do the same thing depending on how it happened.

I understood the above part but how about when it comes to brokerages?

Let's say this scenario:

You have $10 million in certain securities you're holding long-term.

An unfortunate dip occurs just as part of the market cycle, a hacker at this time hacks into your account and sells your holdings/wreaks whatever havoc he may want.

Do you just get the money you would have had before this occured? Or after it was sold? Or just get the shares back that you had?

Just confused on this.

>>1577076

When you get to the millions and tens of millions figure, they're most likely going to be way more thorough and launch a full internal investigation alongside the criminal investigation.

Someone gaining access to your accounts just to sell your positions is really suspicious. I couldn't begin to tell you how this would be handled. You might get your money back, but it wouldn't be quick if you did.

>>1577084
>Someone gaining access to your accounts just to sell your positions is really suspicious

I could imagine it would be used for market manipulation?

>Hack some guys' accounts worth multi-millions
>Sell his positions, pump some penny stocks
>Meanwhile send email/text spam shilling the penny stocks all over

Something like that. I dunno man I've just been reading a few security blogs and news stories we never hear about. Seems like Russian nationals get arrested for this type of shit ALL THE TIME.

Just read an article about a Russian living in NYC who got 30 months in prison for hacking into brokerage accounts. It honestly seems trivial. And it doesn't seem like an account worth $20 million would have extensively higher protection than $50k.

>You might get your money back, but it wouldn't be quick if you did.
>Might
>Might
>Might

What do you mean might? Some guy can just go from being a millionaire to losing all his money and they just shrug and say "Opps sorry :)"

>>1577055
Partially true. My broker keeps cash in a money market account insured by FDIC

>>1577093
Vanguard settlement accounts are not FDIC insured. Also SIPC insurance is for broker fraud and broker bankruptcy.

>>1577113
Does nothing protect us then???