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
Money doesn’t “go missing” from an account, particularly in that amount. Banking software is highly regulated, and routinely audited by government.
If any amount is missing from your account, the transaction logs are scrubbed to see where it went and who authorized it to be moved like that. You might lose it, if the transaction was done with your authorization. The bank might lose it, if it was not. Banks make up losses from their profits, stealing is a cost of doing business.
You’re going to need a very, very unusual situation to have 9 digits of money in an account. When you get middle-5-digits in an account, the bank starts contacting you to see what’s up. Any transaction over $10K requires separate government reporting, as part of anti-money-laundering statutes. If it’s a $50K wire transfer to a real estate escrow company for the down-payment on a new house, the FBI Financial Crimes folks might look the other way, but every 6-digit transfer is examined by a human. A 9-digit transaction probably turns on red rotobeams and sirens in some FBI office.
Latest Answers