Government bonds - not as safe as you think?

The Savings Bond Advisor has posted some scary facts about Treasury Direct that are making me think twice about buying bonds electronically... Given that people who invest in Savings Bonds and other Treasury securites are looking for an investment with as little risk as possible, several of TreasuryDirect's policies are pretty scary. You've discovered one of them. Another is that they don't notifiy you if any of the details of your account are changed, for example, the associated bank account or your address. This kind of notification is a standard security practice for financial companies such as brokerage firms or mutual fund companies. Another is that Regulation E doesn't apply to Treasury Direct. This is the banking regulation that says if a thief gets your credit card number, your liability is limited. If a thief gets your TreasuryDirect details, changes the bank account, and cashes in your funds, you likely won't know until months later when you receive the 1099-INT tax form telling you how much interest income you earned. Meanwhile, the Treasury is adamant that it will not cover your losses. I've brought these issues up with my contacts at the Treasury, but the conversations always end the same way. If you aren't willing to take the risk, don't use TreasuryDirect. I'm not sure right now what the other options are, but I'm going to take this into consideration when deciding whether or not to purchase additional products via TreasuryDirect. I know T-bills are available through Fidelity for a fee of a few cents, but I'm not sure where I can buy I-bonds besides a bank or credit union. Is it time to switch to paper bonds and safety deposit boxes?