All investing comes with some threat. However that threat ought to be primarily based in the marketplace, not your dealer. That’s why we safeguard each your Betterment account and your investments with a number of safety measures, all so you’ll be able to 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 corresponding to a code texted to your telephone (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 the knowledge transmitted between your gadget and our servers is scrambled in a manner that solely we are able to perceive.
Password hashing
While you create a password on 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 methods had been breached, your precise password would stay unknown and unusable by unauthorized events.
App-specific passwords
Connecting third-party apps to at least one one other unlocks all kinds of advantages. You’ll be able to see your internet price once you log in to Betterment. You’ll be able to shortly import your Betterment tax types to your tax prep software program. To allow these connections securely, we provide app-specific passwords. If any one in every of these connections is compromised, you’ll be able to simply revoke entry with out affecting the safety of your major Betterment account.
4 methods we maintain your investments protected
Straightforward verification of holdings
Transparency is one in every of our key ideas, so we make it simple to confirm all the things 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 will discover all this data within the Holdings and Exercise tabs for every of your targets.
Unbiased oversight
We commonly bear evaluate by impartial auditors. This implies auditors reconcile each share and each greenback we are saying we now have towards our precise holdings. Additionally they spot examine random buyer accounts and confirm that account statements match our inside data. 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 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 belongings 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, a very powerful safety measure is you. Be looking out for suspicious telephone calls, texts, and emails (odd-looking URLs, typo-riddled messages, and many others.) and know that Betterment won’t ever ask you on your password or 2FA code besides when logging in or modifying your private data within the app. Use a powerful, distinctive password on your account, and don’t hesitate to contact us instantly if you happen to suspect a rip-off message and must confirm that we’ve reached out. We’ve acquired your again, and between the 2 of us, we will help maintain unhealthy actors at bay.
