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If someone steals (maybe by logging in with stolen credentials) from a person's retirement account, is that money gone, or are accounts insured against theft and hacking?

Edit: it sounds from the comments that if someone were to "hack" my account and transfer all of my retirement savings to their account, I'd be screwed. Same goes for all of you, I guess. Why isn't this more discussed / regulated? All it takes is a trojan / digging through the trash / some social engineering to come up with a mother's maiden name and a password.

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    If someone else presented stolen credentials to an IRA or 401(k) web site and withdrew money, the burden of proof is on you to show that it was not you who made the transfers. My IRA custodians do not permit electronic withdrawals to be sent to anyone other than the bank account I registered with them (written paperwork with bank guarantee of my signature). If I want to send the money elsewhere (e.g. make a Qualified Charitable Distribution from my IRA which sends money directly from my IRA to a charity), I have to have written paperwork with bank guarantee of signature, etc. – Dilip Sarwate Jul 8 '17 at 14:10
  • SIPC protects you from fraud or errors at the broker, so there are protections in some scenarios, but not the one listed. – user662852 Jul 8 '17 at 18:26
  • I doubt there is any protection for this; it would be too easy to cheat them out of millions: you just give your password to your friend in Europe, s/he takes all the money out, claim you know nothing about it, and you get reimbursed? Too good and easy to be possible. – Aganju Jul 8 '17 at 18:45
  • @DilipSarwate - why did you not load this as an answer? – JoeTaxpayer Jul 8 '17 at 20:40
  • @JoeTaxpayer I didn't consider it an answer to the question actually asked: Are accounts insured against theft and hacking. I know that accounts are insured against theft by employees of the IRA custodian/401k administrator; ditto for mutual funds etc, but this is a different kettle of fish to which I don't know the answer for sure. Hence, comment instead of answer. – Dilip Sarwate Jul 9 '17 at 2:20

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