Ripped off. questions about checking accounts/online fraud

[abaez]

Someone got a hold of my parents business checking account number, they called their credit card company up and used my parents checking account info to pay off $500 of their credit card bill.

The credit card company says that the account info is private and they can't give any info out, they also said that they would accept any checking account number to pay off a credit card balance. (It's capital one.) They didn't ask for ANY personal info besides the checking account number/routing numbers etc.

The bank says that it's impossible to stop any electronic types of transfers from a checking account, and they really can't do anything about it. They also notified us of another attempt to take $500, this time from bank one but it was caught because it wasn't a direct debit. They are investigating the original 500 taken, but we are not keeping our hopes up.

My question is, is it possible to put some sort of hold on any direct debits on an account? Like you can only take money if its from a PHYSICAL check? (the bank says no on this)
What sort of preventative measures can be taken (since it's impossible for them to stop using their business checks the account info is there for all to see).

The bank says any electronic transfers cannot be stopped.. is this true? My parents are thinking of going to another bank because this one does not seem very helpful at all (but they have been there 15 years so they are hesitant), I am just wondering if they go to another bank if the same crap will just happen again.

Any tips/info/advice appreciated.

 

[Eli]

Damn. Any idea on how the account numbers got out?..

I always make it a habbit to rip up any bank receipts, especially around the account number part.. heh.

 

[mugs]

Originally posted by: Eli
Damn. Any idea on how the account numbers got out?..

I always make it a habbit to rip up any bank receipts, especially around the account number part.. heh.

Your account number is on your checks.

 

[abaez]

What is wierd is that the credit card company just wants an account number... no other personal information.. as far as I know this would be nearly impossible to prevent since your number is ON the checks.. help! I'm finding nothing online..

 

[RossMAN]

I work in international banking a good portion of my work is in fraud.

Your parents should definitely shop around for a different bank which offers more advanced products.

 

[abaez]

Any suggestions of banks that have some good fraud protection Ross? We are in SoCal and my parents run a 5-10 employee sized medical clinic.

 

[RossMAN]

Try the big corporate banks ... concentrate on banks which cater to small business and offer advanced products with the features you want.

Unfortunately since I don't deal with small business I have no suggestions to offer.

Contact your local SBA and ask for advice on which bank's offer the best small business products.

 

[abaez]

cool thanks ross.. one question though.. it IS possible to stop electronic debits from a checking account correct?

 

[Cyberian]

The credit card company says that the account info is private and they can't give any info out, they also said that they would accept any checking account number to pay off a credit card balance. (It's capital one.) They didn't ask for ANY personal info besides the checking account number/routing numbers etc.

Sounds to me like this is one shaky outfit!
I'd try to go further with them. How the hell can they accept a verbal payment?
Like you said, the account # and routing # are printed right on the checks. Anyone to whom your company has ever written a check has access to them.

 

[RossMAN]

Originally posted by: abaez
cool thanks ross.. one question though.. it IS possible to stop electronic debits from a checking account correct?

Yes it is possible using the right DDA (direct deposit account) system but not all bank's offer this functionality.

I have seen some accounts which only allow these debits:

• ATM withdrawals
• Bank fees
• Debit card transactions
• Checks including counter checks

The only problem not allowing electronic debits is that includes ACH as well.

It's just a matter of finding the right bank but there are other factors as well.

Maybe there is a bank which can offer you this BUT their fees are outrageous, they have a $50,000 balance requirement, etc.

 

[Eli]

Originally posted by: Cyberian

The credit card company says that the account info is private and they can't give any info out, they also said that they would accept any checking account number to pay off a credit card balance. (It's capital one.) They didn't ask for ANY personal info besides the checking account number/routing numbers etc.

Sounds to me like this is one shaky outfit!
I'd try to go further with them. How the hell can they accept a verbal payment?
Like you said, the account # and routing # are printed right on the checks. Anyone to whom your company has ever written a check has access to them.

Oh yeah, duh.

Well, damn. That's insane that they wouldn't ask for any other ID!!

I'd like sue or something. That has to be against the law or something. If it isn't, it should be.

 

[Eli]

dp...

 

[abaez]

Originally posted by: RossMAN

Originally posted by: abaez
cool thanks ross.. one question though.. it IS possible to stop electronic debits from a checking account correct?

Yes it is possible using the right DDA (direct deposit account) system but not all bank's offer this functionality.

I have seen some accounts which only allow these debits:

• ATM withdrawals
• Bank fees
• Debit card transactions
• Checks including counter checks

The only problem not allowing electronic debits is that includes ACH as well.

It's just a matter of finding the right bank but there are other factors as well.

Maybe there is a bank which can offer you this BUT their fees are outrageous, they have a $50,000 balance requirement, etc.

That sounds good.. but what is ACH?

My parents ideally just want their business checks ONLY to be able to use the account.. ALL they use it for it to write checks.. absolutely nothing else... but I don't know if that's offered..

 

[TerryMathews]

ACH is like when you take money out of your account via Paypal. It's a non-wire electronic transfer.

 

[RossMAN]

ACH is automatic clearing house, like making pre-scheduled (authorized) automatic monthly car or mortgage payments

 

[abaez]

oh.. they don't need that either.. thanks

 

[her209]

i blame the banks.

 

[sxr7171]

I always kind of assumed that was some kind of fraud protection after the fact in the case of an abused account. I guess you make an ass of yourself when you assume (boy, now I really feel like an ass for actually using that phrase).

My reasoning is that banks and private organizations are heavily encouraging the use of ACH, and every credit card company I know will accept a routing number and account number for payment. My school also does, you can pay for porn sites with those numbers. How private are those numbers you ask? They're on every bloody check you write! So I just had to assume they had a way of protecting you when they allow your account to be debited by anyone who knows those numbers.

Quite frankly, this is just straight up bull$hit! I'm mad about this and I don't even write checks! (I use online billing for everything I can). I don't even feel safe writing the two checks a year I normally write.

As for a business? I can't even imagine! With personal stuff you can get away with exclusively using billpay, but I can't imagine running a business without having the ability to safely write checks. I would punch the MF in the face that said he can't help you! As for Capital One (mind you, I am a happy customer of theirs and I even was offered a lucrative job by them once) I would sic a lawyer on their asses. You have proof that the account someone used to pay their credit card bill is yours. Don't they give a damn that someone stole from you to pay them? If that a$$hole was my my customer, I would report him to the feds so quick that the nerve endings in his anus will be so far gone so fast that he won't even feel the rod in his a$$.

You better believe I am mad. We've all been lied to by some of the biggest and most respected companies in the world if they all act so aloof. We all know that there's legislation that makes this kind of crap illegal (I mean this is straight up fraud), and one of the world's largest issuer of credit cards doesn't care, and we don't even know how big the OP's bank is. It could be one of the top 20 banks in the US. How do I know my bank won't screw me over? How you know your bank will say "it's not my problem." I guess until there is some particular legislation on the books these stupid won't bother coming to a self imposed consensus on how these things should be handled - after all they get their money anyway.

I'm sorry about the harsh language, but this was a big let down.

 

[tk149]

Ask a Banker

 

[abaez]

Sorry to bump an old thread.. but my parents are having no luck finding a bank that does not allow electronic debits/payments they have tried b of a, banco popular, citibank.... does anyone have any suggestions of good banks in southern california? Or a website that might lead me to one? The people that stole the acct number keep charging things, the bank is eventually getting the money back to us but only after we fill out a two page form we'd like to find another bank to switch over permanently instead of closing this acct and opening another at the same bank...help!

 

[ReiAyanami]

did they go after the morons who used the number to pay off their cred card?

it'd seem easy to trace

 

[abaez]

The credit card company is not cooperating... they said they cannot give out any account information..

 

[Orsorum]

Originally posted by: abaez
The credit card company is not cooperating... they said they cannot give out any account information..

That's bs. Get your bank's fraud dept. on it, NOW, or hire a lawyer and threaten legal action. Do something.

Record all conversations, time, date, etc. Record the audio itself if your state law allows it.

 

[abaez]

My banks fraud dept can only get the money charged from our account back.. they cannot pursue anything else... the cc company is not willing to investigate even though we have called them numerous times saying that these are unauthorized charges... stay away from capital one please..

 

[Orsorum]

Originally posted by: abaez
My banks fraud dept can only get the money charged from our account back.. they cannot pursue anything else... the cc company is not willing to investigate even though we have called them numerous times saying that these are unauthorized charges... stay away from capital one please..

And you've contacted your bank with this information? Have you contacted a lawyer?