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Does FDIC insurance cover fraud?
Someone ripped a blank check out of my checkbook and wrote a $500 check against my account before I realized it. Will FDIC insurance cover my loss?
Someone ripped a blank check out of my checkbook and wrote a $500 check against my account before I realized it. Will FDIC insurance cover my loss?
No. FDIC insurance covers only consumer losses from bank failures, not those due to fraud or robbery. But state law will likely require the bank to take responsibility for your loss, assuming you discovered and reported it promptly. Banks typically carry private insurance to cover losses due to criminal acts.
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