If someone knows your bank information why do banks just allow money stolen?

Question

I few months ago some how some way some foriegn company in India (I live in USA) had got a hold of my bank information created fradulant charges/sales (they were a fake company) and used it to withdraw over $390 from my bank account. It took me over 3 months and a HUGE amount of stress to get my money back and the bank only credited me $180 out of $390 lost and they permenantly banned me from banking with them for life.

This was totally not fair. My question is why arent banks more secure? Why can anyone with your bank and routing number is allowed to withdraw any amount they see fit? You can't tell me NO one has ever seen this huge flaw in the banking system.

So my question is not how people do this but why do banks allow it so easily? Literally anyone can steal your account info in multiple ways. I know how to keep myself sucure in the future.

Answer 1

Because bank computers do not know who has submitted an electronic transaction, they can only go on the routing number and account number. This is a very good reason to protect your account number from almost everybody. Banks are not responsible for checking the authenticity of those transactions.



Never permit anybody to electronically withdraw money from your account by giving them the account number. Never. Some exceptions might include your mortgage company or a bank who holds your loan. They usually have a form you fill out and sign that gives them permission. These are legitimate businesses, and legitimate business dealings.



Try to reduce the number of checks you write and hand out. You can mail checks to the water company, the insurance company, or the department store, but don't write checks to pay for everyday things at all sorts of businesses. The more times you pass checks, the more opportunity you offer thieves who will copy down your banking information and use it later.



If you try to purchase over the internet or pay by phone, and you have to give your banking numbers, just say "no". It's safer to give a credit card number because the credit card company will work with you to help get your money back if it was charged wrongly.

Answer 2

If some one has your information then a bank can't really tell if the transactions are coming from you or from the person that stole your info. Not fair but unless you have proof that it wasn't you there isn't much you can do. You should also protect your info as much as you can. Never bank or shop online in public places, always cover your pin / passwords at bank machines etc.

It depends on their policies but they should have warned you of the activity if you don't withdraw that amount. You should have either closed your account or see if there is a way to change your information. All you can do for now is try to find a bank with better security and customer service.

Answer 3

Talk to mother, See what she wishes to have occur, Get mom-go to bank and explain what occurred. See if they are able to support you/her. This feels like cousins have become into trade that isn't their business. Why are they getting into her advantages? The cash may be long gone for excellent and nothing to do about it. Make certain they are not able to get anymore until mom has given them permission to take action. See if she signed some thing! Like a energy of lawyer? What is the rationale of "getting the money down to not up to $eight,000?" The couch is the purple flag- where did the sofa get delivered? Hmmm that will have to inform you who's/are the one(s) benefitting from this priceless plan. Just right grief!