In the world of investing, security is paramount. At Betterment, we understand that your peace of mind is as important as your portfolio’s performance. That’s why we’ve implemented a robust security framework designed to protect your investments and personal data from potential threats.
Our security measures go beyond industry standards, providing you with multiple layers of protection. From advanced encryption technologies to independent oversight, we’re committed to safeguarding your financial future.
Advanced technological safeguards
Betterment employs state-of-the-art technology to create an impenetrable fortress around your account and investments.
Multi-factor authentication
We implement two-factor authentication (2FA) as an essential security measure. This process requires not just your password, but also a second form of verification. This could be a code sent to your mobile device or generated by an authenticator app like Google Authenticator. Even if someone manages to obtain your password, they won’t be able to access your account without this additional verification step.
Data encryption
Every interaction you have with Betterment, whether through our website or mobile app, is protected by encrypted connections. This means that all data transmitted between your device and our servers is scrambled and secure. Only our systems can decipher this information, ensuring your data remains private and protected.
Password security
When you create a password for your Betterment account, it’s not stored in plain text. Instead, we use a process called hashing, which converts your password into a unique string of characters. This ensures that even if our systems were compromised, your actual password would remain secure and unusable by unauthorized parties.
Secure third-party integrations
Connecting third-party applications to your Betterment account can provide valuable benefits, such as tracking your net worth or importing tax forms. However, we understand the importance of maintaining security during these integrations.
When a third-party app requests access to your Betterment account, we don’t require you to use your regular login credentials. Instead, we ask you to create a unique app password specifically for that application. This way, if the third-party app’s connection is compromised, you can easily revoke its access to your Betterment account without affecting your main login credentials.
Some applications, like TurboTax, use the OAuth standard, which allows you to use your regular login while maintaining a similar level of security as an app password.
Protecting your investments
At Betterment, we believe in transparency and accountability when it comes to your investments.
Easy verification of holdings
We make it simple for you to verify your holdings and track your investments. You can view each trade made on your behalf, the precise number of shares you own, and even the details of fractional shares sold, including gross proceeds and cost basis. All this information is readily available in the Holdings and Activity tabs for each of your goals.
Independent oversight
We regularly undergo reviews by independent auditors to ensure the accuracy and security of your investments. These auditors reconcile every share and dollar we manage against our actual holdings. They also perform spot checks on random customer accounts to verify that account statements match our internal records. Any discrepancies, no matter how small, are thoroughly investigated.
Separation of funds
Your funds are kept separate from Betterment’s operational funds. This means your investments are held in your name and never mixed with our company finances. In the unlikely event that Betterment faces financial difficulties, your assets remain secure and untouched.
SIPC insurance
Betterment Securities is a member of the SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). This provides an additional layer of protection for your investments.
How you can contribute to your account’s security
While we implement robust security measures, there are steps you can take to further protect your account.
Be vigilant about suspicious communications. Watch out for unusual phone calls, texts, and emails. Look for signs like odd-looking URLs or messages riddled with typos. Remember, Betterment will never ask you for your password or 2FA code except when you’re logging in or editing your personal information in the app.
Use a strong, unique password for your account. This is one of the simplest yet most effective ways to enhance your account’s security.
If you receive any unexpected or suspicious communications or have questions about your account’s security, please email [email protected].
At Betterment, your security is our top priority. By combining advanced technology, rigorous oversight, and proactive measures, we strive to create a secure environment for your investments. Start investing with confidence, knowing that your financial future is in capable hands.
