Does the FDIC insure any personal funds that are lost/stolen as a result of identity theft?

Question

Just wondering if they automatically refund your monies if someone steals your identity and illegally gains access to your bank accounts or if you're just out of luck since it was not their fault. Maybe FDIC is just insurance when someone steals directly from them (not from any specific individual account)???

Answer 1

FDIC insures the bank that holds your money...if the bank goes under it pays you up to $100k of what is in your account (ie if there is $200k in your account they would pay you back $100k...if there is $20 in your account they would pay you $20).

It is up to the bank to investigate identity theft and if the claim is found to be valid then it is up to the bank to refund money to your account.

Answer 2

The FDIC only insures account holders at banking institutions against failure of the banks involved, up to a specified limit per customer/account.

Any monies lost through ID theft are not covered by FDIC, but you may have other recourse with the bank involved to recover such losses.

Answer 3

FDIC insurance is when the insured bank goes under... it is not for money that is gained by someone getting into your account.

Answer 4

FDIC insures you if the bank goes under, up to a certain amount.