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
Basically I’d fraud or theft happens the insurance just pays out. But, for numbers like that they will push the police and do their own legwork, find where that money went and get it back. It’s very hard to steal cash out of a bank account, can’t do cash as millions is just not happening, and electronic can just be reversed a week later.
Second, insurance will require the account implement fraud/theft protection, that means regular audits to check for fraud (and catch it before it’s big), and background checks and controls so people who want to steal don have access.
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