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FDIC Consumer News
Special 10th Anniversary Edition - Fall 2003
Extra Tip on... Who Covers Losses from Fraud
Consumers often ask the FDIC whether federal deposit insurance covers losses caused by fraud or robbery. By law, the FDIC only protects insured deposits if a banking institution fails. However, banks and other financial institutions typically purchase special private insurance policies to cover losses from criminal acts. Federal and state laws also may limit a consumer's losses due to fraud. Excerpted from "Does the FDIC Cover Losses Due to Fraud?," Spring 2003.
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