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. Also remember that federal and state laws also may limit a consumer's losses due to fraud (see Federal Laws Protecting You Against Fraud).

To learn more about what is and is not protected by FDIC insurance, read our brochure "Insured Or Not Insured," available online at www.fdic.gov/consumers/consumer/information/fdiciorn.html or obtain a copy free of charge from the FDIC's Public Information Center.