I don't understand how banks can claim to have federal FDIC-insured protection of $250,000 per depositor if they don't actually reimburse you when a simple wire transfer fraud happens??
Because the insurance is against the bank being unable to pay deposits due to bank insolvency.
The FDIC does not insure depositors against wire transfer fraud.
I did some more research and it looks like the EFTA (Electronic Fund Transfer Act) protects electronic funds transfers (EFTs) in bank accounts, not the FDIC.