It is my assumption that large accounts, such as investment funds, or superannuation accounts, have insurance against fraud or theft. How does the insurance work? What would happen if a large amount of cash (say $100,000,000) went missing from one of the accounts?
Please excuse the simplicity and naivety of the question, insurance and finance aren’t my realms.
Note: Not looking to steal, I’m an aspiring writer.
In: Economics
Tbh there probably isnt a bank account anywhere with $100 mil in cash. When at these sums, people put the money into assets. Nowadays those assets are usually securities (stocks, bonds, derivatives). If cash holdings go missing from an account, there must be a transaction (wire transfer). If securities go missing from an account, there must be a transaction (sale in open market). The account provider must be able to prove funds moved for the funds to move, or you will win your money back from the bank in court. If there was an unauthorized transaction due to fraud, the bank usually isnt liable, but sometimes they are.
Also holdings like this arent usually held in a bank account per se, they are often held as paper. There are plenty of $10 million paper treasury bonds (bearer bonds) that can be redeemed after expiration at the treasury. These types of securities are how people store large wealth without the use of a bank.
I know it doesn’t answer your question really, but this info might add to your writing!
edit: [this SEC link has info on security holdings
](https://www.sec.gov/reportspubs/investor-publications/investorpubsholdsechtm.html)
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