When considering investment opportunities, the inherent market risks should be your primary focus, not the safety of your broker. At Betterment, we prioritize your peace of mind by implementing a range of security measures designed to protect your account and investments. This article outlines how we ensure your financial assets are secure, allowing you to concentrate on your investment strategies without unnecessary concern.
Four key security features for your Betterment account
To begin, we highlight essential features that safeguard your Betterment account. Each element plays a crucial role in enhancing your security.
Two-factor authentication
Two-factor authentication (2FA) provides an additional barrier against unauthorized access. In addition to your regular password, 2FA requires a secondary verification method. This could be a code sent via SMS to your mobile device or a time-sensitive code generated by an authenticator app such as Google Authenticator. Consequently, even if someone were to obtain your password, they would still need this second verification step to access your account.
Data encryption
Every interaction with Betterment, whether through our website or mobile application, is secured by encryption. This technology ensures that any data exchanged between your device and our servers is encoded, rendering it unreadable to unauthorized parties. This approach safeguards your sensitive information, maintaining its confidentiality and protection.
Password hashing
When you create a password for your Betterment account, we do not store it in a readable format. Instead, we employ a method known as hashing, which transforms your password into a unique string of characters. Thus, even if our systems were compromised, your actual password would remain concealed and ineffective for unauthorized individuals.
App passwords for third-party connections
Integrating third-party applications with your Betterment account can offer valuable functionalities, such as tracking your net worth or importing tax documents into software like TurboTax. However, when these applications request access, we advise generating a unique app password rather than using your standard login credentials. This way, if the third-party app is compromised, you can easily revoke its access without jeopardizing your primary account security.
Ensuring the safety of your investments
Shifting from account security to investment safety, it is vital to understand how we protect your assets. Here are some pivotal practices implemented by Betterment.
Transparency in holdings
At Betterment, we champion transparency as a core value. We provide you with clear visibility of your investments, allowing you to verify that everything is accounted for. You can easily access details of every trade conducted on your behalf, including the number of shares owned and any fractional shares sold, along with their respective gross proceeds and cost basis. This information is readily available in the Holdings and Activity sections for each of your investment goals.
Independent audits
To enhance trust and accountability, we undergo regular evaluations by independent auditors. These professionals meticulously verify that every share and dollar reported aligns with our actual holdings. They conduct random audits of customer accounts to ensure consistency between account statements and our internal records. If discrepancies arise, even minor ones, auditors promptly investigate.
No mixing of funds
Your funds remain entirely separate from Betterment’s operational resources. This distinction ensures that your investments are held in your name and are not mixed with our financial assets. In the unlikely event of financial difficulties at Betterment, your assets will remain secure and untouched.
SIPC insurance
To begin, we highlight essential features that safeguard your Betterment account. Each element plays a crucial role in enhancing your security.0
Protecting yourself from fraud
To begin, we highlight essential features that safeguard your Betterment account. Each element plays a crucial role in enhancing your security.1
To begin, we highlight essential features that safeguard your Betterment account. Each element plays a crucial role in enhancing your security.2