How secure is your checking account from privacy and fraud standpoint?
I discovered two disturbing things:
1) one can initiate electronic transfers as soon as you know the institution code and bank account number, both readily found on any check. I did this from my wife’s checking account to our joint mutual fund account at a different institution, and I cant see how the bank verified it was legit.
2) you can call my bank and say “I have a check from XYZ who has an account # 123 for $xxxx. Will it clear?”, and they will readily say aye/nay, indirectly telling the caller how much is in the account.
Bottom line - what’s to prevent someone who receives my check from using the numbers on it to call my bank to get an idea of how much my account has, and then transferring it to Timbuktoo?
I’ve never encountered the safeguards described while transferring money. eg. to pay our insurance bill online, we enter routing number and account number inthe insurance company website, and off goes the money - no pin number, no matching SS#, nothing.
Regarding info about the balance in an account, all someone has to do is ask “I have a $5000 check - will it clear?” If the ans is yes, then you know there’s 5 grand.
November 23rd, 2009 at 9:18 pm
The procedure of a person being paid by a check would want to try to insure if it will clear, the bank is only allowed to say “yes” or “no” and cannot give balance information and most banks limit the number of times that account can verified like that. But when it comes to transfers, their are security measures where the identity will be verified. The banks are aware that some persons attempting to commit fraud do try this.
As far as transfer to your joint mutual fund, the checking and mutual both had her name on them. But if someone attempts to do this to say John Does mutual fund, well that wont fly very far.
Keep in mind also, that if they suspect fraud they can and will see the number that is being called from. Etta P
November 27th, 2009 at 2:47 am
You can initiate electronic transfers out of a checking account only if you have access to the account online (user id and password). Otherwise, you can transfer money into an account using the checking and routing numbers only if the accounts are already linked. I transfer money from my checking account and my husband’s checking account into our joint brokerage account because they’ve already been linked. You have to approve the link and set up first.
If I had your checking account number, I would need other personal information to actually move money out (like your phone PIN or ss# and security question answer). PK