Investing is an exciting way to grow your wealth, but it’s important to ensure that your investments are kept safe and secure. At Betterment, we prioritize the security of your account and investments with a range of measures designed to give you peace of mind. Here’s a glimpse into how we protect your financial assets:
Four ways we keep your Betterment account safe
Two-factor authentication
Our two-factor authentication (2FA) system adds an extra layer of protection to your account, making it harder for unauthorized users to access your information. By requiring a second form of verification, such as a code sent to your phone or generated by an authenticator app, we ensure that your account remains secure even if your password is compromised.
Encryption
All data transmitted between your device and our servers is encrypted to safeguard your information from prying eyes. This encryption ensures that your interactions with Betterment are secure and confidential.
Password hashing
We use password hashing to encrypt your password, making it unreadable to anyone who may attempt to breach our systems. This extra layer of security protects your account from unauthorized access in the event of a data breach.
App-specific passwords
For added security when connecting third-party apps to your Betterment account, we offer app-specific passwords. This feature allows you to easily manage and revoke access to your account without compromising its overall security.
Four ways we keep your investments safe
Easy verification of holdings
Transparency is at the core of our investment philosophy. We provide detailed information on every trade made on your behalf, ensuring that you can easily verify your holdings and transactions at any time.
Independent oversight
Our investments undergo regular audits by independent firms to ensure accuracy and compliance. This oversight provides an additional layer of security and peace of mind for our customers.
No commingling of funds
Your funds are securely held separately from Betterment’s operational finances, guaranteeing the safety and integrity of your investments. In the unlikely event of financial difficulties, your assets remain protected and untouched.
SIPC insurance
As an extra measure of protection, your Betterment securities are insured by the Securities Investor Protection Corporation (SIPC). This insurance covers up to $500,000 per customer, providing a safety net in case of brokerage failure.
How you can help
Your active involvement in maintaining account security is crucial. Stay vigilant against potential scams and phishing attempts by watching out for suspicious emails, texts, and calls. Remember, Betterment will never ask for your password or 2FA code outside of the login process. Use strong, unique passwords and contact us immediately if you suspect any fraudulent activity.