How secure is your checking account from privacy and fraud standpoint?
Posted November 23rd, 2009 by admin 2 Comments »
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.