All investing comes with some danger. However that danger needs to be primarily based available on the market, not your dealer. That’s why we safeguard each your Betterment account and your investments with a number of safety measures, all so you may log in and make investments or save with peace of thoughts. Right here’s a sampling.
4 methods we maintain your Betterment account protected
Two-factor authentication
Two-factor authentication (2FA) provides an additional layer of safety to your account, like an additional lock on a door. Apart from your common password, 2FA requires a second type of verification akin to a code texted to your cellphone (good) or one served up by an authenticator app like Google Authenticator (much more safe). This helps be sure that even when somebody manages to pay money for your Betterment password, they nonetheless cannot entry your account with out a second type of verification.
Encryption
Each time you work together with us, whether or not on our web site or our app, your knowledge is protected by encrypted connections. Which means that the knowledge transmitted between your system and our servers is scrambled in a approach that solely we will perceive.
Password hashing
Whenever you create a password in your Betterment account, it isn’t saved in plain textual content. As an alternative, we use a course of referred to as hashing, which converts your password into a novel string of characters. This manner, even when our techniques have been breached, your precise password would stay unknown and unusable by unauthorized events.
App passwords
Connecting third-party apps to your Betterment account (or vice versa) unlocks a number of advantages. You may simply observe your internet value on Betterment, for instance. Or shortly import your Betterment tax kinds to sure tax prep software program.
When a third-party app asks in your Betterment credentials, as an alternative of utilizing your common login, we ask you to create a password particularly for that app. Within the situation the third-party app’s connection is compromised, you may simply revoke its read-only entry to your Betterment account.
Be aware that some apps might use the OAuth customary, which helps you to use your common login whereas sustaining the same degree of safety as an app password. TurboTax is one such instance.
4 methods we maintain your investments protected
Simple verification of holdings
Transparency is one in every of our key ideas, so we make it simple to confirm every little thing is in its proper place. We not solely present every commerce made in your behalf and the exact variety of shares during which you’re invested, we additionally record every fractional share bought and the respective gross proceeds and value foundation for every. You’ll find all this data within the Holdings and Exercise tabs for every of your targets.
Unbiased oversight
We usually bear assessment by unbiased auditors. This implies auditors reconcile each share and each greenback we are saying now we have towards our precise holdings. In addition they spot test random buyer accounts and confirm that account statements match our inner information. They usually ask questions if something is even a penny off.
No commingling of funds
Your funds are saved separate from Betterment’s operational funds. Which means that your investments are held in your identify and are by no means combined with our firm funds. Within the unlikely occasion we face monetary difficulties, your property stay safe and untouched.
SIPC insurance coverage
So as to add one other layer of safety, your Betterment securities are insured by the Securities Investor Safety Company (SIPC). This insurance coverage covers as much as $500,000 per buyer, together with a $250,000 restrict for money claims. Whereas SIPC doesn’t shield towards market losses, it does present a security internet in case of a brokerage failure. An explanatory brochure is offered upon request or at sipc.org.
How one can assist
Ultimately, crucial safety measure is you. Be looking out for suspicious cellphone calls, texts, and emails (odd-looking URLs, typo-riddled messages, and so on.) and know that Betterment won’t ever ask you in your password or 2FA code besides when logging in or enhancing your private data within the app. Use a robust, distinctive password in your account, and don’t hesitate to contact us instantly should you suspect a rip-off message and have to confirm that we’ve reached out. We’ve obtained your again, and between the 2 of us, we can assist maintain dangerous actors at bay.
