In light of J.P. Morgan Chase’s recent security breach, many people wonder how protected their accounts truly are. Along with that, if there is a breach and your account has had unauthorized purchases, who is held liable?
The short answer is that most brokers such as Fidelity, Charles Schwab, and Vanguard will recoup losses made from unauthorized transactions. However, there is a catch. The fine print would have to be that the account user has made all the necessary steps to protect the account in the first place.
This is yet another time where you should cover yourself. Make complicated passwords, don’t save them on your computer, and do not share your account information with anyone. Don’t give brokerages an out or else they’ll hold you liable for any breach your account may experience.
For a full article on this, read here:: How to Tell If Your Broker Protects You Against Identity Theft